ISR Calculator (Salaried)

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Annual ISR
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Monthly withholding
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Effective rate
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Show the brackets
Exemption: Q48,000/year (Q4,000/month)
• Up to Q300,000 taxable: 5%
• Above Q300,000: Q15,000 + 7% on excess

How Guatemala Income Tax (ISR) Works for Salaried Workers

ISR (Impuesto Sobre la Renta) is Guatemala’s personal income tax. For salaried workers — anyone receiving a wage from an employer — the tax is regulated by Decree 10-2012 (Ley de Actualizacion Tributaria), Articles 72 through 74. The employer is required to withhold the tax monthly and remit it to SAT.

Unlike many countries, Guatemala has a very generous exemption: the first Q48,000 of annual income (Q4,000/month) is tax-free. On top of that you can deduct Q12,000 in personal expenses with FEL invoices, your IGSS contributions, and certain insurance premiums.

The result: a large share of Guatemalan workers pay zero ISR.

The Official ISR Formula

Annual gross salary - Q48,000 (personal exemption)
                   - IGSS contributions paid
                   - Up to Q12,000 personal expenses (with FEL invoices)
                   - Life insurance premiums (within limits)
= Net taxable income

ISR = 5% on the first Q300,000 of net taxable income
ISR = Q15,000 + 7% on the excess above Q300,000

The two brackets only apply to net taxable income, not gross salary. Most workers never reach the 7% bracket.

What Counts and What Doesn’t

INCLUDED in the ISR base:

  • Base monthly salary
  • Regular productivity bonuses (above the Q250 exempt portion)
  • Habitual commissions
  • Overtime (when paid in cash, not compensated with time off)

EXCLUDED from the ISR base:

  • The Q250 monthly incentive bonus (Decree 78-89, Article 2)
  • Aguinaldo (Christmas bonus, Labor Code Art. 88)
  • Bono 14 (Decree 42-92, Art. 8)
  • Vacation cash payments
  • Severance / indemnizacion (Labor Code Art. 82)
  • Travel per diems within allowed limits
  • Reimbursed expenses

This is one of the most misunderstood points: many workers think their Q250 bonus or Aguinaldo gets taxed. It doesn’t.

Worked Examples for 2026

Case 1 — Minimum wage worker (Q4,002.28 base + Q250 bonus)

  • Gross monthly: Q4,252.28 (Q4,002.28 base + Q250 bonus)
  • Annual gross subject to ISR: Q4,002.28 x 12 = Q48,027.36
  • Less personal exemption: Q48,000
  • Less IGSS (4.83% of Q48,027.36 = Q2,319.72): rounded down
  • Net taxable income: ~Q0
  • Annual ISR: Q0
  • Monthly withholding: Q0

The minimum wage worker pays no income tax.

Case 2 — Q10,000 monthly salary

  • Gross monthly: Q10,000 base + Q250 bonus
  • Annual gross subject to ISR: Q10,000 x 12 = Q120,000
  • Less personal exemption: Q48,000
  • Less IGSS (4.83% of Q120,000 = Q5,796): Q5,796
  • Less personal expenses with FEL invoices (assume Q12,000): Q12,000
  • Net taxable income: Q54,204
  • Annual ISR: Q54,204 x 5% = Q2,710.20
  • Monthly withholding: ~Q225.85

Case 3 — Q30,000 monthly salary

  • Gross monthly: Q30,000 base + Q250 bonus
  • Annual gross subject to ISR: Q30,000 x 12 = Q360,000
  • Less personal exemption: Q48,000
  • Less IGSS (4.83% of Q360,000 = Q17,388): Q17,388
  • Less personal expenses (Q12,000): Q12,000
  • Net taxable income: Q282,612
  • Annual ISR: Q282,612 x 5% = Q14,130.60
  • Monthly withholding: ~Q1,177.55

Still below the Q300,000 threshold, so no 7% applies.

Case 4 — Q50,000 monthly salary (the 7% bracket appears)

  • Annual gross subject to ISR: Q600,000
  • After Q48,000 exemption + IGSS + Q12,000 expenses
  • Net taxable income: ~Q511,020
  • ISR: Q15,000 (on first Q300,000 at 5%) + 7% x Q211,020 = Q15,000 + Q14,771.40
  • Annual ISR: ~Q29,771.40
  • Monthly withholding: ~Q2,481

Monthly Withholding (Retencion Mensual)

The employer projects your annual income at the start of the year and divides the resulting ISR by 12 to deduct each month. If your salary changes during the year (raise, bonus, commission spike), the employer must recalculate and adjust the December withholding to settle the actual annual tax.

You can request that personal expenses (FEL invoices) be considered in the projection by submitting the Formulario SAT-1101 (Proyeccion de Gastos Personales) to your employer.

Annual Filing Deadline: March 31

Workers with a single employer generally don’t need to file an annual return — the monthly withholdings settle the obligation. Workers with multiple employers or additional income (rentals, professional fees, etc.) must file the annual ISR return by March 31 of the following year.

The return is filed online through SAT’s Declaraguate platform using your NIT and password.

Common Mistakes to Avoid

  1. Counting the Q250 bonus in the ISR base — it’s exempt. The base is salary only.
  2. Forgetting to deduct IGSS — your 4.83% IGSS contribution reduces the ISR base.
  3. Not submitting FEL invoices to your employer — without the SAT-1101 form, the employer can’t include your Q12,000 personal expense deduction.
  4. Treating Aguinaldo or Bono 14 as taxable — both are 100% exempt.
  • Decreto Numero 10-2012 — Ley de Actualizacion Tributaria, Articles 72-74 (current ISR law for salaried workers).
  • Decreto Numero 78-89 — Ley de Bonificacion Incentivo, Article 2 (Q250 bonus exempt from ISR and IGSS).
  • Decreto Numero 42-92 — Ley del Bono 14, Article 8 (Bono 14 exempt from ISR).
  • Codigo de Trabajo, Article 88 (Aguinaldo exempt from ISR).
  • SAT — Superintendencia de Administracion Tributaria, official portal: portal.sat.gob.gt.

This page provides general guidance on Guatemala tax law. For complex situations (multiple employers, professional income, foreign income), consult a certified accountant or tax specialist.