Honduras Tax Calculator (2026)
Income tax rates and take-home pay for Honduras
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Honduras Income Tax Brackets (2026)
| Bracket | Income Range | Rate |
|---|---|---|
| Tax exempt | HNL 0 - HNL 228,324 | 0.0% |
| 15% bracket | HNL 228,324 - HNL 348,154 | 15.0% |
| 20% bracket | HNL 348,154 - HNL 809,661 | 20.0% |
| 25% bracket | HNL 809,661+ | 25.0% |
Municipal income tax
| Bracket | Income Range | Rate |
|---|---|---|
| 0–5,000 lempiras | HNL 0 - HNL 5,000 | 0.1% |
| 5,001–10,000 lempiras | HNL 5,001 - HNL 10,000 | 0.2% |
| 10,001–20,000 lempiras | HNL 10,001 - HNL 20,000 | 0.3% |
| 20,001–30,000 lempiras | HNL 20,001 - HNL 30,000 | 0.3% |
| 30,001–50,000 lempiras | HNL 30,001 - HNL 50,000 | 0.4% |
| 50,001–75,000 lempiras | HNL 50,001 - HNL 75,000 | 0.4% |
| 75,001–100,000 lempiras | HNL 75,001 - HNL 100,000 | 0.4% |
| 100,001–150,000 lempiras | HNL 100,001 - HNL 150,000 | 0.5% |
| 150,001+ lempiras | HNL 150,001+ | 0.5% |
Sickness and maternity
| Bracket | Income Range | Rate |
|---|---|---|
| 2.5% sickness and maternity | HNL 0+ | 2.5% |
Capped at HNL 278 per year
Invalidity, old age, and death
| Bracket | Income Range | Rate |
|---|---|---|
| 1% invalidity, old age, and death | HNL 0+ | 1.0% |
Capped at HNL 113 per year
Minimum tax on gross income
| Bracket | Income Range | Rate |
|---|---|---|
| 1.5% on gross income ≥ L10 million | HNL 10,000,000+ | 1.5% |
Applies when income exceeds HNL 10,000,000
Key Facts
Tax Year
2026
Currency
HNL
Top Rate
25.0%
Brackets
4 brackets
Tax-Free Threshold
HNL 228,324
Social Contributions
2 items
Assumptions
- · Municipal income tax applies to all employees; rates shown are per 1,000 lempiras of taxable income.
- · Social security contributions (sickness/maternity 2.5% and invalidity/old age 1%) are capped at stated annual ceilings and are deductible from taxable income.
- · Social housing fund contribution (1.5%) is now optional; excluded from this model.
- · INFOP contribution (1%) is employer-only; excluded.
- · Personal deductions (educational, medical, professional, charitable) are highly individual and excluded; model uses gross income as representative baseline.
- · The 1.5% minimum tax on gross income over L10 million is modeled as a surcharge when it exceeds progressive income tax.
- · No personal allowances or universal tax credits apply.
Frequently asked questions
How much income tax will I pay as an expat working in Honduras?
Honduras has a progressive income tax system with four brackets ranging from 0% to 25%. The first L228,324 of annual income is tax-free, then you pay 15% on income up to L348,154, 20% up to L809,661, and 25% on anything above that. Additionally, you'll owe municipal income tax on top of the national rate, which ranges from 0.15% to 0.525% depending on your income level.
What are the social security deductions in Honduras?
As an employee in Honduras, you contribute 2.5% for sickness and maternity insurance (capped at L277.73 annually) and 1% for invalidity, old age, and death benefits (capped at L113.36 annually). Both contributions are deductible from your taxable income, which effectively reduces the amount subject to income tax.
Do I pay taxes on my entire salary or is there a deduction first?
Your taxable income is calculated after deducting your social security contributions (sickness/maternity and invalidity/old age), so the income tax brackets apply to what remains. However, personal deductions like educational or medical expenses are highly individual and not automatically applied in standard calculations, so you should consult a local tax advisor about whether you qualify for any.
Is there a minimum tax in Honduras for high earners?
Yes, if your gross income exceeds L10 million annually, you may owe a 1.5% minimum tax on that gross income if it exceeds your regular progressive income tax liability. This surcharge ensures high earners pay at least this minimum amount, even if their progressive tax would be lower.
How does municipal tax work in Honduras?
Municipal income tax is calculated per 1,000 lempiras of taxable income and ranges from 0.15% for the lowest income bracket to 0.525% for incomes above L150,001. This tax is applied on top of your national income tax and is mandatory for all employees, regardless of which municipality you work in.
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