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 uses a progressive income tax system with four brackets: income up to 228,324 HNL is tax-exempt, then 15% on income from 228,324 to 348,154 HNL, 20% from 348,154 to 809,661 HNL, and 25% on income above 809,661 HNL. Your exact tax depends on your total annual income and which bracket you fall into.
What are social security contributions in Honduras, and are they deductible?
Employees in Honduras pay two types of social security contributions: 2.5% for sickness and maternity (capped at 277.73 HNL annually) and 1% for invalidity, old age, and death benefits (capped at 113.36 HNL annually). Both contributions are deductible from your taxable income, which reduces your overall income tax liability.
Do I have to pay municipal income tax on top of national income tax?
Yes, Honduras imposes a municipal income tax that applies to all employees in addition to national income tax. The municipal tax rates range from 0.15% to 0.525% depending on your income level, calculated per 1,000 lempiras of taxable income, so higher earners pay a slightly higher municipal rate.
Is there a minimum tax in Honduras for high earners?
If your gross income exceeds 10 million HNL in a year, a 1.5% minimum tax on gross income applies as a surcharge. This minimum tax only kicks in if it exceeds what you would otherwise owe in progressive income tax, protecting high earners from paying less than this floor amount.
What deductions can I claim to reduce my taxable income in Honduras?
The tax system allows for personal deductions in categories like education, medical expenses, professional fees, and charitable donations, but these are highly individual and must be documented. Social security contributions are automatically deductible, but the calculator uses gross income as a baseline since personal deductions vary widely by person.
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