Peru Tax Calculator (2026)
Income tax rates and take-home pay for Peru
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Peru Income Tax Brackets (2026)
| Bracket | Income Range | Rate |
|---|---|---|
| First bracket (0–5 UIT) | PEN 0 - PEN 27,500 | 8.0% |
| Second bracket (5–20 UIT) | PEN 27,500 - PEN 110,000 | 14.0% |
| Third bracket (20–35 UIT) | PEN 110,000 - PEN 192,500 | 17.0% |
| Fourth bracket (35–45 UIT) | PEN 192,500 - PEN 247,500 | 20.0% |
| Fifth bracket (over 45 UIT) | PEN 247,500+ | 30.0% |
Personal allowance: PEN 38,500
Pension contribution (National Pension System)
| Bracket | Income Range | Rate |
|---|---|---|
| National Pension System (SPP) | PEN 0+ | 13.0% |
Health insurance (EsSalud)
| Bracket | Income Range | Rate |
|---|---|---|
| EsSalud employee contribution | PEN 0+ | 10.0% |
Key Facts
Tax Year
2026
Currency
PEN
Top Rate
30.0%
Brackets
5 brackets
Allowance
PEN 38,500
Social Contributions
2 items
Assumptions
- · Model assumes domiciled individual (subject to tax on worldwide income).
- · Tax unit (UIT) for 2026 set at 5,500 PEN.
- · First 7 UIT (38,500 PEN) exempted from income tax as standard deduction.
- · Income tax brackets expressed in UIT converted to PEN using 5,500 PEN per UIT.
- · Employee pension contribution modeled at 13% (National Pension System) as the representative default.
- · Health insurance (EsSalud) modeled at 10% employee rate; employer pays 9% (excluded as employer-only).
- · Additional 3 UIT deduction for qualifying expenses not modeled as a separate tiered credit; subsumed into simplified standard deduction approach.
- · Professional service expense deduction (30% of payments) not modeled due to complexity and variability.
- · Capital gains and rental income special rates (5%) not modeled for this employment income comparison.
- · Charitable donation deduction (up to 10% of net income) not modeled as it is discretionary.
- · No significant tax credits or rebates available to individuals per source.
Frequently asked questions
How much of my income is tax-free in Peru?
Peru provides a standard employment deduction of 38,500 PEN (equivalent to 7 UIT), which means your first 38,500 PEN of annual income is exempt from income tax. This deduction applies to all domiciled individuals and significantly reduces your taxable income before the progressive tax brackets are applied.
What are Peru's income tax brackets and rates?
Peru uses a progressive tax system with five brackets. Income from 0-27,500 PEN is taxed at 8%, then 14% up to 110,000 PEN, 17% up to 192,500 PEN, 20% up to 247,500 PEN, and 30% on income above 247,500 PEN. These brackets are indexed to the UIT (tax unit), which is set at 5,500 PEN.
What pension and health contributions do I pay as an employee in Peru?
As an employee in Peru, you contribute 13% of your gross income to the National Pension System (SPP) and 10% to EsSalud (health insurance). The pension contribution is deductible from your taxable income, but the EsSalud contribution is not, meaning you pay health insurance from your after-tax income.
Will I pay tax on my worldwide income if I move to Peru?
Yes, if you become a domiciled individual in Peru (typically by establishing tax residency), you are subject to income tax on your worldwide income, not just Peruvian-source income. This applies whether you work locally or remotely for a foreign employer.
How does the take-home pay calculation work in Peru?
Your take-home pay is calculated by subtracting both income tax and social contributions from your gross salary. First, the 38,500 PEN standard deduction reduces your taxable income, then the progressive tax brackets apply to what remains. Additionally, your 13% pension contribution and 10% health insurance are deducted, with only the pension contribution reducing your taxable income.
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