Honduras Tax Calculator (2026)
Income tax rates and take-home pay for Honduras
Using Tegucigalpa for state/regional taxes. Region selection coming soon.
Honduras Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Exempt | HNL 0 - HNL 217,493 | 0.0% |
| First Bracket | HNL 217,493 - HNL 331,639 | 15.0% |
| Second Bracket | HNL 331,639 - HNL 771,252 | 20.0% |
| Third Bracket | HNL 771,252+ | 25.0% |
Personal allowance: HNL 40,000
Municipal Personal income Tax
| Bracket | Income Range | Rate |
|---|---|---|
| Tier 1 | HNL 0 - HNL 5,000 | 0.1% |
| Tier 2 | HNL 5,000 - HNL 10,000 | 0.2% |
| Tier 3 | HNL 10,000 - HNL 20,000 | 0.3% |
| Tier 4 | HNL 20,000 - HNL 30,000 | 0.3% |
| Tier 5 | HNL 30,000 - HNL 5,000 | 0.4% |
| Tier 6 | HNL 50,000 - HNL 75,000 | 0.4% |
| Tier 7 | HNL 75,000 - HNL 100,000 | 0.4% |
| Tier 8 | HNL 100,000 - HNL 150,000 | 0.5% |
| Tier 9 | HNL 150,000+ | 0.5% |
IHSS Sickness and Maternity
| Bracket | Income Range | Rate |
|---|---|---|
| Standard Rate | HNL 0 - HNL 133,312 | 2.5% |
Capped at HNL 3,333 per year
IHSS Invalidity, Old Age, and Death (IVM)
| Bracket | Income Range | Rate |
|---|---|---|
| Standard Rate | HNL 0 - HNL 136,032 | 1.0% |
Capped at HNL 1,360 per year
Key Facts
Tax Year
2025
Currency
HNL
Top Rate
25.0%
Brackets
4 brackets
Allowance
HNL 40,000
Social Contributions
2 items
Assumptions
- · Subnational data based on Municipal Personal Income Tax (Impuesto Personal Municipal) for Tegucigalpa (Distrito Central).
- · Assumed Social Security (IHSS) ceilings are monthly and converted to annual amounts.
- · The HNL 40,000 medical/educational deduction is modeled as a standard personal allowance.
- · Social Security contributions are treated as deductible from taxable income per Honduran tax law.
- · Social Housing Fund contribution excluded as it is stated as optional.
- · Alternative Minimum Tax of 1.5% for gross income above HNL 10 million is noted but not modeled in the progressive brackets.
Frequently asked questions
How much income tax will I pay in Honduras?
Honduras uses a progressive income tax system with three tax brackets: income up to HNL 217,493.16 is exempt, income from HNL 217,493.16 to HNL 331,638.50 is taxed at 15%, income from HNL 331,638.50 to HNL 771,252.38 is taxed at 20%, and income above HNL 771,252.38 is taxed at 25%. You also receive a personal allowance of HNL 40,000 to reduce your taxable income.
Do I have to pay social security contributions in Honduras?
Yes, as an employee in Honduras you pay two mandatory social security contributions: IHSS Sickness and Maternity at 2.5% of gross income (capped at HNL 3,332.81 annually) and IHSS Invalidity, Old Age, and Death (IVM) at 1% of gross income (capped at HNL 1,360.32 annually). Both contributions are deductible from your taxable income, which reduces your overall income tax burden.
What is the municipal tax in Tegucigalpa?
Tegucigalpa charges a Municipal Personal Income Tax on top of national income tax, with rates ranging from 0.15% on income up to HNL 5,000 to 0.525% on income above HNL 150,000. The municipal tax is calculated using a progressive bracket system similar to national income tax, and rates vary by municipality, so if you relocate to another city in Honduras your municipal tax may differ.
Is there a minimum income threshold to pay taxes in Honduras?
Yes, the first income bracket is entirely exempt from national income tax, meaning you pay no national income tax on income up to HNL 217,493.16 annually (about HNL 18,124 per month). However, you may still owe municipal tax and social security contributions depending on your income level and location.
What is my take-home pay after all taxes and contributions?
Your take-home pay depends on your gross income, but you will owe national income tax (if above the exempt threshold), municipal tax in Tegucigalpa, and two social security contributions (IHSS Sickness and Maternity plus IVM). Use the calculator above to enter your income and see your exact take-home pay after all deductions and taxes are applied.
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