Paraguay Tax Calculator (2026)
Income tax rates and take-home pay for Paraguay
Paraguay Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| First Bracket | PYG 0 - PYG 50,000,000 | 8.0% |
| Second Bracket | PYG 50,000,000 - PYG 150,000,000 | 9.0% |
| Third Bracket | PYG 150,000,000+ | 10.0% |
Social Security (IPS)
| Bracket | Income Range | Rate |
|---|---|---|
| Standard Rate | PYG 0+ | 9.0% |
Key Facts
Tax Year
2025
Currency
PYG
Top Rate
10.0%
Brackets
3 brackets
Allowance
None
Social Contributions
1 item
Assumptions
- · Calculated based on the tax regime for Personal Services (IRP-RSP).
- · Assumed the worker is employed by a commercial entity (9% social security) rather than a financial entity (11%).
- · Per the source, individuals whose gross income does not exceed PYG 80,000,000 are not liable for PIT; the calculator assumes the user is above this liability threshold.
- · Religious affiliation (tithes) and specific personal deductions (furniture, car, etc.) are excluded as they are variable and itemized.
- · Social security contributions are treated as deductible from the income tax base.
Frequently asked questions
How much income tax do I pay in Paraguay if I work as an expat?
Paraguay uses a progressive three-bracket income tax system for personal services. You'll pay 8% on income up to PYG 50,000,000, 9% on income between PYG 50,000,000 and PYG 150,000,000, and 10% on anything above PYG 150,000,000. These rates apply after deducting your social security contributions from your gross income.
Do I have to pay social security contributions in Paraguay?
Yes, if you're employed by a commercial entity in Paraguay, you contribute 9% of your gross income to the IPS (social security system). The good news is that this contribution is deductible from your income tax base, so it reduces the amount of income subject to the income tax brackets.
Is there a minimum income threshold for paying taxes in Paraguay?
Yes, individuals whose gross income does not exceed PYG 80,000,000 are not required to pay personal income tax. If you earn above this threshold, you'll be liable for income tax under the progressive bracket system.
What's the difference between working for a commercial entity versus a financial entity in Paraguay?
The main difference is the social security contribution rate. If you work for a commercial entity, you pay 9% in social security contributions, but if you work for a financial entity, the rate is 11%. Both are deductible from your income tax base, but the higher rate for financial entities means a smaller deduction.
Can I deduct personal expenses like religious contributions or car purchases from my taxes in Paraguay?
The calculator does not include itemized personal deductions such as religious tithes, furniture, or vehicle purchases, as these are highly variable and must be documented individually. You should consult with a local tax professional to understand what specific personal deductions you may be eligible to claim based on your circumstances.
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