Colombia

Individual - Taxes on personal income

Last reviewed - 23 January 2026

The concept of fiscal residency defines the nature of the source that the individual has to declare as follows:

Fiscal residents (nationals or foreign) are taxed on worldwide income and should report equity owned in Colombia and abroad.
Non-residents (nationals or foreign) are taxed only on Colombian-sourced income and should report only the equity owned in Colombia.

Personal income tax rates

General income basket

The following are the types of income included in the general income basket:

Employment income: Income received for services performed in Colombia, no matter where the payment was received, salaries, wages, fringe benefits, commissions, and all income arising from the labour relationship.
Capital income: Includes interest, financial income, royalties, rentals, and intellectual property (IP) income.
Non-employment income: All type of income that cannot be classified in other baskets.

The rates for fiscal residents (nationals or foreign) applicable to the general income basket, pension income basket, and dividend income basket (see below) are:

Taxable income (UVT *)		Marginal rate (%)	Tax liability
Over	Not over	Marginal rate (%)	Tax liability
0	1,090	0	0
1,090	1,700	19	(Taxable income translated into UVT - 1,090 UVT) x 19%
1,700	4,100	28	(Taxable income translated into UVT - 1,700 UVT) x 28% + 116 UVT
4,100	8,670	33	(Taxable income translated into UVT - 4,100 UVT) x 33% + 788 UVT
8,670	18,970	35	(Taxable income translated into UVT - 8,670 UVT) x 35% + 2,296 UVT
18,970	31,000	37	(Taxable income translated into UVT - 18,970 UVT) x 37% + 5,901 UVT
31,000	And up	39	(Taxable income translated into UVT - 31,000 UVT) x 39% + 10,352 UVT

* Tax value unit. In December 2006, the Colombian government approved a reform of the Colombian tax system. Such reform incorporated the UVT to measure the different limits and thresholds originally set in absolute numbers, adjusted every year by decree. The value of each UVT is equivalent to 52,347 Colombian pesos (COP) for fiscal year (FY) 2026.

Pension income basket

Includes retirement and disabilities pensions or income received from labour risks, compensations that substitute pensions or refunds (for rates, see table in General income basket above).

The recent tax reform considers foreign pension income as exempt of taxation up to 1,000 UVT.

Dividend income basket

Dividends subject to tax at the corporate level and paid to fiscal residents will be subject to the progressive marginal rates previously mentioned applicable for the general and pension income basket (0% to 39%).

Nevertheless, residents subject to this tax on their dividend income will be able to claim a tax credit determined as follows:

Taxable income (UVT)		Marginal tax credit (%)	Tax credit
Over	Not over	Marginal tax credit (%)	Tax credit
0	1,090	0	0
1,090	And up	19	(Taxable income translated into UVT - 1,090 UVT) x 19%

On the other hand, dividends that were not subject to tax at the corporate level will be taxed at a 35% flat rate, and the net income resulting from subtracting such tax from the gross income will be subject to the individual tax (0% to 39%) previously addressed.

As for non-residents, the applicable tax rate for dividend income was increased to 20% (previously 10%).