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 do I pay in Honduras if I'm an expat working remotely?
Honduras uses a progressive income tax system with four brackets ranging from 0% to 25%. Income up to 228,324 HNL is tax-exempt, then you pay 15% on income between 228,324 and 348,154 HNL, 20% on income up to 809,660 HNL, and 25% on anything above that. You'll also pay social security contributions (2.5% for sickness/maternity and 1% for invalidity/old age) and municipal income tax, which are deductible from your taxable income.
What are social security contributions in Honduras and are they mandatory?
Yes, employee social security contributions are mandatory and deductible from your taxable income. You pay 2.5% for sickness and maternity coverage (capped at 277.73 HNL annually) and 1% for invalidity, old age, and death benefits (capped at 113.36 HNL annually). These contributions are based on your gross income and help fund Honduras's social security system.
Do I have to pay municipal income tax in Honduras?
Yes, municipal income tax applies to all employees and is calculated on a per-1,000 lempiras basis with rates ranging from 0.15% to 0.525% depending on your income level. For example, income from 0 to 5,000 HNL is taxed at 0.15%, while income above 150,001 HNL is taxed at 0.525%. This tax is in addition to national income tax and social security contributions.
Is there a minimum tax in Honduras for high earners?
Yes, if your gross income exceeds 10 million HNL, you're subject to a 1.5% minimum tax on that gross income amount. This surcharge applies as an alternative if it exceeds your regular progressive income tax liability, ensuring high earners contribute a baseline amount to the tax system.
What deductions can I claim on my Honduras income tax return?
The calculator uses gross income as a baseline because personal deductions for education, medical expenses, professional fees, and charitable donations are highly individual and require documentation. Social security contributions are automatically deductible from your taxable income, but you should consult with a local tax advisor to determine which specific personal deductions apply to your situation.
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