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 in Honduras?
Honduras uses a progressive income tax system with four brackets. Income up to L228,324 is tax-exempt, then you pay 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. Additionally, you'll pay municipal income tax on top of this, which ranges from 0.15% to 0.525% depending on your income level and municipality.
What are social security contributions in Honduras and are they deductible?
As an employee in Honduras, you contribute 2.5% for sickness and maternity (capped at L277.73 annually) and 1% for invalidity, old age, and death (capped at L113.36 annually). The good news is that both contributions are deductible from your taxable income, which lowers your overall tax burden.
Is there a minimum tax in Honduras for high earners?
Yes, if your gross income exceeds L10 million, you'll pay a minimum tax of 1.5% on that gross income. This surcharge applies in addition to your regular income tax and is designed to ensure higher earners pay a baseline amount regardless of deductions.
Do I need to account for municipal taxes separately in Honduras?
Municipal income tax is applied by your municipality and is calculated per 1,000 lempiras of taxable income, with rates ranging from 0.15% for the lowest income bracket up to 0.525% for incomes over L150,001. This tax is separate from national income tax, so your total tax burden includes both layers.
What happens if I'm considering relocating to Honduras as an expat or remote worker?
As a resident earning income in Honduras, you'll be subject to the progressive income tax brackets, municipal taxes, and social security contributions outlined above. If you're working remotely for a foreign employer, the same tax rules generally apply to your Honduras-source income, though you may want to consult a local tax advisor about your specific residency status and any tax treaties.
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