Uruguay Tax Calculator (2026)
Income tax rates and take-home pay for Uruguay
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Uruguay Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| 0% bracket | UYU 0 - UYU 552,384 | 0.0% |
| 10% bracket | UYU 552,384 - UYU 789,120 | 10.0% |
| 15% bracket | UYU 789,120 - UYU 1,183,680 | 15.0% |
| 24% bracket | UYU 1,183,680 - UYU 2,367,360 | 24.0% |
| 25% bracket | UYU 2,367,360 - UYU 3,945,600 | 25.0% |
| 27% bracket | UYU 3,945,600 - UYU 5,918,400 | 27.0% |
| 31% bracket | UYU 5,918,400 - UYU 9,074,880 | 31.0% |
| 36% bracket | UYU 9,074,880+ | 36.0% |
Retirement pension contribution
| Bracket | Income Range | Rate |
|---|---|---|
| Retirement up to cap | UYU 0 - UYU 3,270,768 | 15.0% |
| Retirement above cap | UYU 3,270,768+ | 0.0% |
Capped at UYU 490,615 per year
Health insurance contribution
| Bracket | Income Range | Rate |
|---|---|---|
| Health insurance (representative rate) | UYU 0+ | 4.5% |
Labour Restructuring Fund contribution
| Bracket | Income Range | Rate |
|---|---|---|
| Labour Restructuring Fund | 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
- · Model represents a single resident individual employee, not a family unit.
- · Income tax brackets are for individual taxation (not family unit), as of 31 December 2025.
- · Social security contributions use representative rates: 15% retirement, 4.5% health insurance (employee with no spouse/concubine and no dependent children), 0.1% Labour Restructuring Fund, totaling 19.6% employee contribution.
- · Health insurance rate of 4.5% applies to remunerations exceeding 2.5 BPC (UYU 16,440) monthly for employees with no spouse/concubine in charge and no dependent underage children.
- · Retirement contributions are capped at UYU 272,564 monthly (UYU 3,270,768 annually) as of 31 December 2025.
- · Employment deductions (social security and notional family support) are modeled as a flat 8% deduction for higher-income earners (monthly income > 15 BPC), applied to the gross income before calculating tax brackets.
- · No net wealth tax (NWT) is included in this salary-comparison model, as it applies separately to asset holdings.
- · Capital investment income taxed at flat 12% is not modeled here; this model focuses on employment income.
- · No family deductions for dependent children are applied, as the default person has no dependents.
- · Minimal salary reference (UYU 23,604 as of source date) used for context only; individual brackets apply here.
Frequently asked questions
How much income tax do I pay in Uruguay if I'm earning UYU 1,000,000 per year?
Uruguay uses a progressive tax system with 8 income tax brackets. On UYU 1,000,000 annual income, you would owe income tax on the portion above UYU 552,384 (the first bracket threshold), with rates ranging from 10% to 24% depending on which brackets your income falls into. After accounting for social security contributions (totaling about 19.6% of gross income) and employment deductions, your effective tax rate would be significantly lower than the marginal rate.
What are the social security contributions I need to pay as an employee in Uruguay?
As an employee in Uruguay, you contribute 15% for retirement pension (capped at UYU 3,270,768 annually), 4.5% for health insurance, and 0.1% for the Labour Restructuring Fund, totaling approximately 19.6% of your gross income. These contributions are deductible from your taxable income, which reduces your overall tax burden.
Is there a minimum income threshold before I start paying income tax in Uruguay?
Yes, Uruguay has a zero percent tax bracket for income up to UYU 552,384 annually. Income above this threshold enters the 10% bracket, and rates progressively increase to a maximum of 36% for the highest earners. This means lower-income earners pay no income tax, though they still contribute to social security.
Do I need to pay wealth tax or investment income tax in Uruguay?
This salary calculator focuses on employment income and does not include net wealth tax, which applies separately to asset holdings outside of employment income. Capital investment income is taxed at a flat 12% rate in Uruguay, but that is modeled separately from employment income taxation.
How many income tax brackets does Uruguay have?
Uruguay has 8 income tax brackets ranging from 0% on income up to UYU 552,384, up to 36% on income above UYU 9,074,880. The progressive system means your tax rate increases as your income rises, with rates of 10%, 15%, 24%, 25%, 27%, 31%, and 36% across the different brackets.
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