Honduras

Individual - Taxes on personal income

Last reviewed - 10 January 2020

The tax system in Honduras is based on a territorial concept of income. Citizens and residents are taxed on income earned from worldwide 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 (HN**) Tax rate (%)
From To
0.01 198,995.06 Exempt
198,995.07 242,439.28 15
242,439.29 563,812.30 20
563,812.31 and over 25

40,000 are added for medical expenses

** This table is updated every year in the month of January

*Honduran lempiras

Domiciled individuals will be subject to 1.5% tax on gross income equal to or greater than HNL10 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 (HNL) 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