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Honduras
Individual - Taxes on personal income
Last reviewed - 27 February 2026The tax system in Honduras is based on a territorial concept of income. Citizens and residents are taxed on income earned from Honduran income sources. Non-residents are taxed only on income from Honduran sources, and the tax on any type of income paid to a non-resident must be withheld by the payer.
Personal income tax rates
| Taxable income (L*) | Tax rate (%) | |
| From | To | |
| 0.01 | 228,324.32 | Exempt |
| 228,324.33 | 348,154.10 | 15 |
| 348,154.11 | 809,660.75 | 20 |
| 809,660.76 | and over | 25 |
* Honduran Lempiras
Domiciled individuals will be subject to 1.5% tax on gross income equal to or greater than L 10 million when the progressive income tax for individuals is less.
Municipal income taxes
Companies who have five or more employees have to withhold this tax once every year as follows:
| Taxable income (L) | Tax per ´000 | |
| From | To | |
| 0 | 5,000 | 1.50 |
| 5,001 | 10,000 | 2.00 |
| 10,001 | 20,000 | 2.50 |
| 20,001 | 30,000 | 3.00 |
| 30,001 | 50,000 | 3.50 |
| 50,001 | 75,000 | 3.75 |
| 75,001 | 100,000 | 4.00 |
| 100,001 | 150,000 | 5.00 |
| 150,001 | and over | 5.25 |
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