Guatemala Income Tax (ISR) Calculator 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

1. Wages and salaries: Includes labor benefits
2. Rent: Of properties used to generate taxed income
3. Basic services: Energy, water, business phone
4. Materials and supplies: Directly related to activity
5. Depreciation: According to law's useful life tables
6. Insurance: Protecting assets generating taxed income
7. Interest: From business loans
8. Travel expenses: Proven and activity-related

Non-Deductible Expenses

1. Personal or family expenses
2. Fines and penalties
3. Undocumented expenses without invoices
4. Accounting reserves or provisions
5. Representation expenses (limited to 0.5% of gross income)

Deductibility Requirements

For an expense to be deductible it must meet:

1. Causality: Be directly related to generating taxed income
2. Necessity: Be normal in business activity
3. Documentation: Backed by valid electronic invoice
4. Proportionality: Not be excessive relative to expected benefit
5. 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:

1. Projected annual income: (salary + Q250 incentive bonus) × 12
2. Minus the 2026 personal deduction: Q51,024 (Q48,000 + Q3,024 extraordinary, Decree 13-2026)
3. Minus IGSS contributions (4.83% of base salary)
4. Annual brackets: 5% up to Q300,000 taxable and 7% on the excess
5. 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:

1. General regime: Like any other lucrative activity
2. 5% flat rate: On gross income (without expense deduction)
3. 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

1. Aguinaldo: Exempt up to 100% of one ordinary monthly salary (it equals one month's salary, so in practice it pays no ISR)
2. Bonus 14: Exempt up to 100% of one ordinary monthly salary (same treatment as aguinaldo)
3. Labor severance: According to legal limits
4. Bank interest: Up to Q1,000 annually for individuals
5. 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

1. First years exemption: New companies may be exempt up to 2 years
2. Accelerated depreciation: For productive assets
3. Employment tax credit: For hiring first jobs

Formal Obligations to SAT

Registration and Registry

1. RTU (Unified Tax Registry): Mandatory for all taxpayers
2. Regime choice: At registration or annual change
3. 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 about ISR

Can I change regimes during the year?

No. Regime change can only be made for the following year, notifying SAT before December 31.

What if I work for a company and have independent income?

You must declare both incomes. Independent income is handled according to chosen regime, and you have the right to credit withholdings made by the employer.

Do foreigners pay ISR in Guatemala?

Yes, all persons (national or foreign) who obtain income in Guatemala are obligated to pay ISR.

What documents do I need to deduct expenses?

Only electronic invoices issued by providers registered with SAT. Receipts, debit notes, or informal documents are not accepted.

Can I deduct my personal vehicle expenses if I use it for business?

Yes, but only proportionally to commercial use. You must maintain detailed records of commercial vs personal use.

How do I handle ISR if I have losses?

In the profits regime, losses can be offset against profits from the following 3 years. In the simplified regime this concept doesn't apply.

What happens if I don't file my return on time?

In addition to the 10% fine (minimum Q500), SAT can determine your tax obligation ex officio, generally with amounts higher than actual.

How much ISR is withheld on a Q10,000 monthly salary?

That is payroll withholding, not the business regimes on this calculator. For salaried workers in 2026, with the Q51,024 personal deduction and IGSS (4.83%), withholding is about Q276 per month (includes the Q250 incentive bonus). Use the Guatemala net salary calculator; your employer sets the exact amount from the annual projection.

Do aguinaldo and Bono 14 pay ISR?

They receive special treatment: they are generally exempt when they equal one ordinary monthly salary; amounts above that may be taxable. Confirm your specific case with SAT or a tax professional.

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”:

1. You quote a clean amount.
2. You issue an electronic invoice with VAT (IVA).
3. The payer withholds ISR and/or VAT.
4. 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.