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, which means your first 38,500 PEN of income is not subject to income tax. This deduction is equivalent to 7 UIT (Tax Unit), which is set at 5,500 PEN. Any income above this threshold is then taxed according to Peru's progressive tax brackets.
What are Peru's income tax brackets and rates?
Peru uses a progressive tax system with five brackets. Income above the 38,500 PEN exemption is taxed at 8% (first 27,500 PEN), 14% (next 82,500 PEN), 17% (next 82,500 PEN), 20% (next 55,000 PEN), and 30% on any amount over 247,500 PEN. This means higher earners pay significantly more in taxes, with the top rate reaching 30%.
Do I have to pay pension and health contributions in Peru?
Yes, as an employee in Peru you must contribute 13% of your gross income to the National Pension System (SPP) and 10% to health insurance (EsSalud). The pension contribution is deductible from your taxable income, but the health insurance contribution is not, so it further reduces your take-home pay.
What is the UIT and why does it matter for my taxes?
The UIT (Tax Unit) is an indexing mechanism Peru uses to adjust tax brackets and deductions annually for inflation. For 2026, the UIT is set at 5,500 PEN. Tax brackets and the standard deduction are expressed in UIT multiples, so understanding this unit helps you see how your income relates to Peru's tax system, even as the UIT changes year to year.
As an expat or remote worker, do I pay tax on worldwide income in Peru?
If you are classified as a domiciled individual in Peru (typically after establishing residence), you are subject to tax on your worldwide income, not just Peruvian-source income. This is important for remote workers and expats to understand, as it means your global earnings may be taxed in Peru depending on your residency status and any tax treaties your home country has with Peru.
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