Calculator default: Q15,000/mo under simplified → ISR Q750/mo (Q9,000/yr), estimated net Q14,250 (effective rate 5%).
Simplified regime: ~5% on monthly gross up to Q30,000 and 7% on the excess. Profits regime: annual base = income − deductible expenses − Q48,000 reference personal deduction; then 5% up to Q300,000 taxable and 7% on the excess (Decree 10-2012). Educational estimate only: does not include IGSS and is not tax advice. Salaried employee (relación de dependencia)? Your 2026 withholding uses the Q51,024 deduction (Q48,000 + Q3,024, Decree 13-2026) plus IGSS: estimate it with the Guatemala net salary calculator.
Need the quarterly tax on business assets or income? That is the Impuesto de Solidaridad (ISO, Decree 73-2008), a quarterly 1% levy on the larger of one quarter of net assets and one quarter of gross income. Estimate it with the Guatemala ISO (Solidarity Tax) calculator.
Does not replace SAT filings or an accountant. Confirm rates and deadlines on the SAT portal. Verified: August 2026.
Fast examples (use the calculator above)
| Scenario | Inputs | Approx. result |
|---|---|---|
| Mid income | Q15,000 · simplified | Monthly ISR ≈ Q750 (5%) |
| Consultant over Q30k | Q45,000 · simplified | Monthly ISR ≈ Q2,550 |
| Business with expenses | Q50,000/mo · profits · Q15,000 deductions | Compare vs simplified on the same screen |
| Service invoice | Net + VAT billed | Estimate withholdings with the ISR/VAT withholding calculator |
How Guatemala ISR is calculated
ISR (Decree 10-2012) taxes Guatemalan-source income. The calculator above estimates two paths for freelancers and businesses: simplified (monthly on gross) or profits (annual with deductible expenses). If you are salaried, withholding uses a different annual projection: go straight to net salary Guatemala.
Legal reference: Decree 10-2012 and reforms; Decree 13-2026 (extraordinary Q3,024 deduction for employment income in fiscal year 2026); Government Agreement 213-2013.
ISR Regimes for Individuals
Simplified Optional Regime on Income
For taxpayers who prefer administrative simplicity: tax is assessed on gross income, without expense deductions.
Main Characteristics
- Tax base: Gross income (without expense deductions)
- Periodicity: Monthly
- Annual limit: No billing limit
- Advantage: Administrative simplicity
- Disadvantage: Doesn't allow expense deductions
Current 2026 Rates
| Monthly Income Range | Rate |
|---|---|
| From Q0.01 to Q30,000 | 5% |
| Over Q30,000 | 7% on excess |
Calculation Formulas
For income ≤ Q30,000:
Monthly ISR = Monthly income × 5%
For income > Q30,000:
Monthly ISR = (Q30,000 × 5%) + ((Monthly income - Q30,000) × 7%)
Monthly ISR = Q1,500 + ((Monthly income - Q30,000) × 7%)
Practical Examples Simplified Regime
Example 1: Independent professional with Q25,000 monthly
- Monthly ISR: Q25,000 × 5% = Q1,250
- Annual ISR: Q1,250 × 12 = Q15,000
Example 2: Consultant with Q45,000 monthly
- First bracket: Q30,000 × 5% = Q1,500
- Second bracket: (Q45,000 - Q30,000) × 7% = Q1,050
- Monthly ISR: Q1,500 + Q1,050 = Q2,550
- Annual ISR: Q2,550 × 12 = Q30,600
Regime on Profits from Lucrative Activities
This regime allows expense deductions and is more favorable for taxpayers with significant documented expenses.
Main Characteristics
- Tax base: Net income (income minus deductible expenses)
- Periodicity: Quarterly provisional payments, annual settlement
- Personal deduction: Q48,000 annually (educational model reference)
- Advantage: Allows documented expense deductions
- Complexity: Requires formal accounting
Current 2026 Rates
| Annual Taxable Income Range | Rate |
|---|---|
| From Q0.01 to Q300,000 | 5% |
| Over Q300,000 | 7% on excess |
Calculation Formulas
1. Taxable Income Calculation:
Taxable Income = Annual Income - Deductible Costs and Expenses - Personal Deduction (Q48,000)
2. ISR Calculation:
For income ≤ Q300,000:
ISR = Taxable Income × 5%
For income > Q300,000:
ISR = (Q300,000 × 5%) + ((Taxable Income - Q300,000) × 7%)
ISR = Q15,000 + ((Taxable Income - Q300,000) × 7%)
Practical Examples Profits Regime
Example 1: Independent professional
- Annual income: Q600,000
- Deductible expenses: Q200,000
- Personal deduction: Q48,000
- Taxable income: Q600,000 - Q200,000 - Q48,000 = Q352,000
ISR Calculation:
- First bracket: Q300,000 × 5% = Q15,000
- Second bracket: (Q352,000 - Q300,000) × 7% = Q3,640
- Annual ISR: Q15,000 + Q3,640 = Q18,640
Example 2: Merchant
- Annual income: Q480,000
- Deductible expenses: Q180,000
- Personal deduction: Q48,000
- Taxable income: Q480,000 - Q180,000 - Q48,000 = Q252,000
ISR Calculation:
- Since Q252,000 < Q300,000, only first bracket applies
- Annual ISR: Q252,000 × 5% = Q12,600
Deductible Expenses in Profits Regime
Generally Deductible Expenses
- Wages and salaries: Includes labor benefits
- Rent: Of properties used to generate taxed income
- Basic services: Energy, water, business phone
- Materials and supplies: Directly related to activity
- Depreciation: According to law's useful life tables
- Insurance: Protecting assets generating taxed income
- Interest: From business loans
- Travel expenses: Proven and activity-related
Non-Deductible Expenses
- Personal or family expenses
- Fines and penalties
- Undocumented expenses without invoices
- Accounting reserves or provisions
- Representation expenses (limited to 0.5% of gross income)
Deductibility Requirements
For an expense to be deductible it must meet:
- Causality: Be directly related to generating taxed income
- Necessity: Be normal in business activity
- Documentation: Backed by valid electronic invoice
- Proportionality: Not be excessive relative to expected benefit
- Accounting records: Be properly recorded in accounting
Provisional Payments and Annual Settlement
Quarterly Payment System
Taxpayers in the profits regime must make quarterly provisional payments:
Quarterly Payment Calculation
Method 1 - On quarter's income:
Quarterly payment = Quarter's income × 2%
Method 2 - On estimated taxable income:
Quarterly payment = (Estimated annual taxable income × corresponding rate) ÷ 4
2026 Quarterly Payment Calendar
| Quarter | Period | Due Date |
|---|---|---|
| 1st | January-March | April 30 |
| 2nd | April-June | July 31 |
| 3rd | July-September | October 31 |
| 4th | October-December | January 31, 2027 |
Annual Settlement
Final settlement is filed between January 1 and March 31 of the following year:
ISR to pay = Annual calculated ISR - Provisional payments made
If provisional payments exceed final ISR, the taxpayer has the right to request refund or compensation.
Special ISR Cases
Dependent Employees
Engine of record for employees: Guatemala net salary. This is a different regime from the profits and simplified paths on this page: employment income has its own rules (articles 68-82 of Decree 10-2012). Withholding does not use a monthly bracket table: the employer projects annual income, subtracts the personal deduction and IGSS contributions, applies the annual 5%/7% brackets, and divides by 12:
- Projected annual income: (salary + Q250 incentive bonus) × 12
- Minus the 2026 personal deduction: Q51,024 (Q48,000 + Q3,024 extraordinary, Decree 13-2026)
- Minus IGSS contributions (4.83% of base salary)
- Annual brackets: 5% up to Q300,000 taxable and 7% on the excess
- Monthly withholding: annual ISR ÷ 12
| Annual taxable income | ISR |
|---|---|
| Q0 - Q300,000 | 5% |
| Over Q300,000 | Q15,000 + 7% on the excess |
To estimate your withholding and monthly take-home with IGSS included, use the Guatemala net salary calculator: Calcufast's reference tool for employee withholding.
2026 Salary Withholding Example
Employee with Q10,000 monthly salary (plus Q250 bonificación incentivo):
- Projected annual income: (Q10,000 + Q250) × 12 = Q123,000
- Annual IGSS: Q10,000 × 4.83% × 12 = Q5,796
- Taxable income: Q123,000 - Q51,024 - Q5,796 = Q66,180
- Annual ISR: Q66,180 × 5% = Q3,309
- Approximate monthly withholding: Q3,309 ÷ 12 = Q275.75
This is the same math used by the Guatemala net salary calculator, which also deducts IGSS to show your monthly take-home pay.
Licensed Liberal Professionals
Licensed professionals have special options:
- General regime: Like any other lucrative activity
- 5% flat rate: On gross income (without expense deduction)
- 15% withholding: When providing services to companies
Legal Entities
Commercial companies pay ISR on their profits:
- Rate: 25% on pre-tax profits
- Quarterly payments: Mandatory
- Accounting close: December 31
- Settlement: Until March 31 of following year
Tax Incentives and Benefits
ISR Exemptions
- Aguinaldo: Exempt up to 100% of one ordinary monthly salary (it equals one month's salary, so in practice it pays no ISR)
- Bonus 14: Exempt up to 100% of one ordinary monthly salary (same treatment as aguinaldo)
- Labor severance: According to legal limits
- Bank interest: Up to Q1,000 annually for individuals
- Pensions: From IGSS and authorized private systems
Special Deductions
Expanded Personal Deduction
In addition to the basic Q48,000 personal deduction (raised to Q51,024 for salaried workers in 2026 under Decree 13-2026), you can deduct:
- Medical expenses: Up to Q5,000 annually
- Educational expenses: Up to Q3,000 annually per child under 25
- Mortgage credit interest: Up to Q12,000 annually
- Donations: Up to 5% of gross income, maximum Q500,000
SME Incentives
- First years exemption: New companies may be exempt up to 2 years
- Accelerated depreciation: For productive assets
- Employment tax credit: For hiring first jobs
Formal Obligations to SAT
Registration and Registry
- RTU (Unified Tax Registry): Mandatory for all taxpayers
- Regime choice: At registration or annual change
- Data update: Within 30 days of any change
Electronic Invoicing (FEL)
Since 2019, issuing Electronic Online Invoices is mandatory:
- FEL System: Certification with authorized provider
- Immediate issuance: At time of sale or service provision
- Conservation: 4 years in electronic format
Books and Accounting Records
Simplified Regime
- Income Book: Chronological record of all invoices issued
- Purchase Book: Record of all purchases with invoice
Profits Regime
- Main books: Journal, Ledger, Inventories, Financial Statements
- Auxiliary books: Banks, Clients, Suppliers, etc.
- Legalization: Before SAT before first use
Declarations and Payments
2026 Tax Calendar
| Obligation | Regime | Due Date |
|---|---|---|
| Monthly ISR | Simplified | 10th of each month |
| Quarterly ISR | Profits | According to quarterly table |
| Annual Settlement | Profits | March 31 |
| Monthly VAT | Both | 10th of each month |
Regime Comparison: Which to Choose?
Comparative Analysis
To determine the most convenient regime, consider:
Simplified Regime is better when:
- Deductible expenses < 30% of income
- You prefer administrative simplicity
- You don't have formal accounting structure
- Stable and predictable income
Profits Regime is better when:
- Deductible expenses > 40% of income
- You have significant medical, educational, mortgage expenses
- You have professional accounting advice
- You prefer to declare net income with invoices
Practical Comparative Example
Professional with:
- Annual income: Q600,000
- Documented expenses: Q150,000
- Medical expenses: Q5,000
- Educational expenses: Q3,000
Simplified Regime:
- First Q360,000 (Q30,000×12): Q360,000 × 5% = Q18,000
- Excess Q240,000: Q240,000 × 7% = Q16,800
- Total ISR: Q34,800
Profits Regime:
- Net income: Q600,000 - Q150,000 - Q48,000 - Q5,000 - Q3,000 = Q394,000
- First bracket: Q300,000 × 5% = Q15,000
- Second bracket: (Q394,000 - Q300,000) × 7% = Q6,580
- Total ISR: Q21,580
Savings: Q34,800 - Q21,580 = Q13,220 (38% less tax)
Penalties and Fines
Common Infractions and Fines
| Infraction | Fine | Observations |
|---|---|---|
| Not registering in RTU | Q500 - Q15,000 | According to delay time |
| Late filing | 10% of tax | Minimum Q500 |
| Not filing return | Q5,000 - Q50,000 | According to taxpayer size |
| Tax evasion | 100% of evaded tax | Plus interest |
| Not implementing FEL | Q1,000 - Q10,000 | Per month of non-compliance |
Compensatory Interest
SAT charges interest on taxes paid late:
- Annual rate: 18.25% (2026)
- Calculation: Daily from due date to payment
Frequently asked questions
Official sources
- Income Tax Law, Decree 10-2012: legal basis of Guatemala's income tax, including the simplified and net-income regimes.
- Decree 13-2026: additional deduction for employment income (Q3,024 for tax year 2026).
ISR (Impuesto Sobre la Renta) is Guatemala's income tax for individuals and legal entities, mainly under Decree 10-2012. This calculator provides an educational estimate, not an official SAT filing.
The simplified regime taxes gross monthly income (5% up to Q30,000 and 7% on the excess). The profits regime allows documented expense deductions, subtracts a Q48,000 reference personal deduction, and applies 5%/7% annual brackets on taxable income. Both are business regimes; salaried employees have their own rules.
Under the profits regime, the reference annual personal deduction is Q48,000 (about Q4,000/month). For salaried employees, the 2026 deduction is Q51,024 (Q48,000 + Q3,024 under Decree 13-2026); that case is covered by the Guatemala net salary calculator. Additional documented deductions may apply; confirm with SAT or a tax professional.
That is a payroll-withholding question, not the lucrative-activity regime of this page. For a salaried employee in 2026, with the Q51,024 personal deduction and IGSS (4.83%), withholding is about Q276 per month (including the Q250 incentive bonus). Calculate it in the Guatemala net salary calculator.
If you invoice services, the client may withhold ISR and/or VAT and pay you less than the invoiced total. Use the ISR and VAT withholding calculator to estimate the net payment of an invoice; this page estimates regime ISR, not a single invoice breakdown.
Generally no. Regime changes are communicated to SAT for the following year, usually before December 31. Check the current procedure on the SAT portal.
Tools and resources
SAT online platform
SAT offers digital services for RTU registration, filing returns, tax status checks, certifications, and online payments: portal.sat.gob.gt.
If your income is high, you have multiple sources, or deductible expenses are complex, review the case with an accountant.
From ISR to invoices and take-home pay
Many freelancers hit ISR after an invoice “pays less than expected”:
- You quote a clean amount.
- You issue an electronic invoice with VAT (IVA).
- The payer withholds ISR and/or VAT.
- Net cash received is lower than the face total.
Model that path with the Guatemala ISR & VAT withholding calculator. For VAT only, use the Guatemala VAT calculator. For payroll take-home with social security, use net salary Guatemala and IGSS / social security. To pick a regime side-by-side, open the ISR regime comparison calculator.
Related calculators:
- ISR regime comparison (Guatemala)
- ISR & VAT withholding (invoice net pay)
- Guatemala VAT (IVA)
- VAT credit / debit
- Net salary Guatemala
- IGSS / social security
- Aguinaldo (Christmas bonus)
- Vacation pay Guatemala
Related guides:
- Guatemala tax guide: ISR, VAT, and IUSI explained
- Income tax guide for salaried workers in Guatemala (2026)
- How to calculate net salary in Guatemala (2026)
- Guatemala calculators: taxes, salary, remittances, mortgage
Official resources:
- SAT Guatemala: portal.sat.gob.gt
- Congress of the Republic / Decree 10-2012
- SAT forms: formularios.sat.gob.gt
Last educational check: August 2026: reference rates and procedures; always confirm with SAT.