Uruguay Tax Calculator (2026)
Income tax rates and take-home pay for Uruguay
Uruguay Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Non-taxable Minimum | UYU 0 - UYU 552,384 | 0.0% |
| Bracket 2 | UYU 552,384 - UYU 789,120 | 10.0% |
| Bracket 3 | UYU 789,120 - UYU 1,183,680 | 15.0% |
| Bracket 4 | UYU 1,183,680 - UYU 2,367,360 | 24.0% |
| Bracket 5 | UYU 2,367,360 - UYU 3,945,600 | 25.0% |
| Bracket 6 | UYU 3,945,600 - UYU 5,918,400 | 27.0% |
| Bracket 7 | UYU 5,918,400 - UYU 9,074,880 | 31.0% |
| Bracket 8 | UYU 9,074,880+ | 36.0% |
Retirement (Jubilación)
| Bracket | Income Range | Rate |
|---|---|---|
| Standard Rate | UYU 0 - UYU 3,270,768 | 15.0% |
| Exceeding Amount | UYU 3,270,768+ | 0.0% |
Capped at UYU 490,615 per year
Health Insurance (FONASA)
| Bracket | Income Range | Rate |
|---|---|---|
| Lower Income Rate | UYU 0 - UYU 197,280 | 3.0% |
| Standard Rate (Single, no dependents) | UYU 197,280+ | 4.5% |
Labour Restructuring Fund (FRL)
| Bracket | Income Range | Rate |
|---|---|---|
| Standard Rate | UYU 0+ | 0.1% |
Key Facts
Tax Year
2025
Currency
UYU
Top Rate
36.0%
Brackets
8 brackets
Tax-Free Threshold
UYU 552,384
Social Contributions
3 items
Assumptions
- · Worker profile: Single, no dependents. Health insurance rate (FONASA) set to 4.5% for income exceeding 2.5 BPC (approx. 16,440 UYU/month).
- · Calculated for resident individuals (IRPF).
- · The Uruguayan tax system uses a unique deduction system where social security contributions and a 'notional' allowance for children generate a tax credit at a rate of either 14% (if annual income is < 1,183,680 UYU) or 8% (if higher). As this credit depends on the amount of social security paid, it is noted here rather than as a fixed allowance.
- · BPC (Base de Prestaciones y Contribuciones) for 2025 is assumed to be 6,576 UYU monthly based on the provided 2.5 BPC = 16,440 UYU.
Frequently asked questions
How much income tax will I pay if I move to Uruguay?
Uruguay has a progressive income tax system with 8 brackets ranging from 0% to 36%. Your first 552,384 UYU of annual income is tax-free, then rates increase progressively as you earn more, reaching 36% on income above 9,074,880 UYU. The actual tax you pay depends on your total income and which brackets you fall into.
What are the social security contributions I need to pay in Uruguay?
As an employee in Uruguay, you contribute to three main programs: Retirement (Jubilación) at 15% up to 3,270,768 UYU annually, Health Insurance (FONASA) at 4.5% for most workers, and the Labour Restructuring Fund (FRL) at 0.1%. These contributions are deducted from your gross income and are not tax-deductible.
Is there a tax credit or deduction I should know about in Uruguay?
Uruguay has a unique system where social security contributions generate a tax credit at either 14% or 8% depending on your income level, rather than a standard deduction. If your annual income is below 1,183,680 UYU, you get a 14% credit; above that threshold, it's 8%. This credit is calculated based on your actual social security payments.
What is the non-taxable income threshold in Uruguay?
The non-taxable minimum in Uruguay is 552,384 UYU per year, which is approximately 46,032 UYU per month. Any income below this amount is not subject to income tax, making it a significant threshold for lower-income workers and those considering relocation.
Do I pay health insurance contributions on all my income in Uruguay?
No, health insurance (FONASA) contributions have a tiered structure. Income up to 197,280 UYU annually is taxed at 3%, while income above that threshold is taxed at 4.5%. This means your effective health insurance rate depends on your total income level.
Does Uruguay have regional or state-level income taxes?
No, Uruguay does not have subnational or regional income taxes. The income tax rates and social contributions listed apply uniformly across the entire country, regardless of which department or region you live in.
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