Honduras Income Tax (ISR) Calculator: Complete Guide 2026
The Income Tax (ISR - Impuesto Sobre la Renta) in Honduras is a progressive tax on the income of individuals and legal entities. Administered by the SAR (Servicio de Administración de Rentas), this tax is one of the country's main sources of fiscal revenue.
What is ISR in Honduras?
ISR is a direct tax applied to the net taxable income of Honduran taxpayers. Unlike flat taxes, ISR uses a progressive bracket system, meaning higher income is taxed at progressively higher rates.
Honduras ISR Tax Brackets 2026
The SAR 2026 progressive table for individuals uses these annual net taxable income brackets:
| Bracket | Annual Income Range | Rate | |---------|-------------------|------| | 1 | Up to L 228,324.32 | 0% | | 2 | L 228,324.33 to L 348,154.10 | 15% | | 3 | L 348,154.11 to L 809,660.75 | 20% | | 4 | Above L 809,660.75 | 25% |
As a salary reference, people earning up to about L 22,360.36 per month are exempt in 2026 when the annual L 40,000 medical expense deduction is considered.
How is Honduras ISR Calculated?
ISR uses a progressive method where each bracket is taxed separately:
- Annual income = Monthly income × 12
- Estimated salary net taxable income = Annual income - L 40,000
- Exempt bracket: first L 228,324.32 → 0%
- 15% bracket: L 228,324.33 to L 348,154.10 → × 15%
- 20% bracket: L 348,154.11 to L 809,660.75 → × 20%
- 25% bracket: excess above L 809,660.75 → × 25%
- Monthly ISR = Annual ISR ÷ 12
Practical Example
Person earning L 30,000/month:
- Annual income: L 360,000
- Estimated net taxable income: L 320,000
- Exempt bracket (L 228,324.32): L 0
- 15% bracket (L 91,675.68): L 13,751.35
- Annual ISR: L 13,751.35
- Monthly ISR: L 1,145.95
- Effective rate on gross income: 3.82%
Taxpayer Obligations
Honduras ISR taxpayers must:
- Register with the SAR using their RTN (National Tax Registry)
- File the annual ISR return
- Pay monthly withholdings through the employer
- Keep income and deduction documentation for 5 years
Employers are responsible for withholding monthly ISR from employees and reporting it to the SAR. If you are a salaried worker, your employer should be making this withholding automatically.
Allowed Deductions
Honduras allows certain ISR deductions, including:
- Medical expenses properly documented
- Educational expenses for yourself and dependents
- Donations to authorized institutions
- Mortgage interest for housing
- Contributions to social security systems
Regional Comparison
Honduras ISR sits in the mid-range compared to other Central American countries:
| Country | Maximum Rate | Exempt Bracket | |---------|-------------|---------------| | Guatemala | 7% | Q 0 (simplified) | | Honduras | 25% | L 228,324.32/year of net taxable income | | El Salvador | 30% | $6,600/year | | Costa Rica | 25% | ₡942,000/month |
If your income approaches a bracket limit, consider available deductions to legally optimize your tax burden.
Frequently Asked Questions
All individuals and legal entities earning Honduran-source income above the applicable exempt amounts are required to pay ISR. For salaried workers, the 2026 reference is about L 22,360.36 per month.
The annual ISR return is filed within the first months of the year following the tax period. Salaried workers generally have their ISR withheld monthly by the employer.
The aguinaldo (13th month) and 14th month bonus are additional income that form part of the annual taxable income and are considered in the ISR calculation.
Yes, salaried workers can deduct medical, educational, and other legally permitted expenses, as long as they are properly documented with fiscal invoices.
The SAR can apply fines, surcharges, and late payment interest. In serious cases of tax evasion, criminal sanctions may apply under Honduran law.