Honduras Tax Calculator (2026)
Income tax rates and take-home pay for Honduras
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 as an employee in Honduras?
Honduras has a progressive income tax system with four brackets: income up to L228,324 is tax-exempt, then 15% on income from L228,324 to L348,154, 20% on income from L348,154 to L809,661, and 25% on income above L809,661. You'll also pay social security contributions (2.5% for sickness and maternity, 1% for invalidity and old age) and municipal income tax, which together add roughly 3.5% to 5.25% depending on your income level.
What is the municipal income tax in Honduras and how does it work?
Municipal income tax is a separate tax applied to all employees, calculated per 1,000 lempiras of taxable income with progressive rates ranging from 0.15% on the first 5,000 lempiras up to 0.525% on income over 150,001 lempiras. This tax is in addition to the national progressive income tax and is collected by your municipality.
Are social security contributions deductible from my taxable income in Honduras?
Yes, both the sickness and maternity contribution (2.5%) and the invalidity, old age, and death contribution (1%) are deductible from your gross income before calculating national income tax. However, these contributions are capped annually at L277.73 and L113.36 respectively, so high earners may not benefit from the full deduction.
Do I pay a minimum tax in Honduras if I earn a very high income?
If your gross income exceeds L10 million, you're subject to a 1.5% minimum tax on that gross income as a surcharge. This surcharge applies in addition to your progressive income tax and other contributions, ensuring high earners pay at least this minimum amount.
What's the total tax burden I should expect as an employee in Honduras?
Your total tax burden combines national income tax (0-25% depending on bracket), municipal income tax (0.15-0.525%), and social security contributions (3.5% total, capped annually). For example, someone earning L500,000 would pay roughly 20-22% in combined taxes and contributions, while lower earners in the tax-exempt bracket would only pay municipal and social contributions totaling around 3.5-4%.
Are there any personal tax deductions or allowances in Honduras?
Honduras does not offer universal personal allowances or tax credits, though individual deductions for education, medical expenses, professional development, and charitable donations may be available depending on your circumstances. You should consult a local tax advisor or your employer to determine which deductions you may qualify for.
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