Paraguay Tax Calculator (2026)
Income tax rates and take-home pay for Paraguay
Paraguay Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Up to PYG 50,000,000 | PYG 0 - PYG 50,000,000 | 8.0% |
| PYG 50,000,001 to PYG 150,000,000 | PYG 50,000,001 - PYG 150,000,000 | 9.0% |
| PYG 150,000,001 and above | PYG 150,000,001+ | 10.0% |
Personal allowance: PYG 80,000,000
Social Security Contribution (Employee)
| Bracket | Income Range | Rate |
|---|---|---|
| Employee contribution (commercial entity) | PYG 0+ | 9.0% |
Key Facts
Tax Year
2025
Currency
PYG
Top Rate
10.0%
Brackets
3 brackets
Allowance
PYG 80,000,000
Social Contributions
1 item
Assumptions
- · Model assumes employment income subject to Personal Income Tax (PIT) on provision of personal services.
- · Gross income threshold of PYG 80,000,000 applies; below this threshold, no PIT is owed.
- · Social security contribution base excludes annual mandatory bonus and family allowance.
- · Model uses commercial entity social security rates (9% employee, 16.5% employer); financial entity rates are higher and would apply only to financial sector employees.
- · Personal deductions (housing, health, education, etc.) are permitted but highly variable and income-dependent; not modeled as fixed deduction to maintain representative consistency across salary ranges.
- · Capital gains taxed separately at 8% flat rate; not included in personal services income model.
- · Employer contributions are excluded per schema rules (employer-only charges).
Frequently asked questions
Do I have to pay income tax in Paraguay if I'm an expat working remotely?
If your gross annual income is below PYG 80,000,000, you won't owe personal income tax in Paraguay. Above that threshold, you'll be subject to progressive income tax rates ranging from 8% to 10% depending on your income bracket, along with a 9% employee social security contribution.
What are the income tax brackets in Paraguay?
Paraguay has three progressive income tax brackets: 8% on income up to PYG 50,000,000, 9% on income between PYG 50,000,001 and PYG 150,000,000, and 10% on income above PYG 150,000,001. These brackets apply to employment income from personal services only.
How much do I pay in social security contributions as an employee in Paraguay?
As an employee in the commercial sector, you contribute 9% of your gross income to social security, which is deductible from your taxable income. The social security contribution base excludes your annual mandatory bonus and family allowance.
Is there a minimum income requirement to file taxes in Paraguay?
Yes, you only need to pay personal income tax if your gross annual income exceeds PYG 80,000,000. Below this threshold, you are exempt from income tax obligations.
Can I claim personal deductions for housing, health, or education in Paraguay?
Personal deductions for housing, health, education, and other expenses are permitted in Paraguay, but they are highly variable and depend on your individual income level and circumstances. You should consult with a local tax professional to determine which deductions apply to your specific situation.
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