ISR Calculator (Salaried)

Decreto 10-2012 Art. 72 + Decreto 13-2026 (fiscal 2026: extra Q3,024 deduction; IGSS deductible). Math runs in your browser — no data sent anywhere.

Annual ISR
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Monthly withholding
Q 0.00
Effective rate
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Show the brackets
Deductions 2026: Q48,000 + Q3,024 extraordinary (Decreto 13-2026) + your IGSS (4.83%)
• Up to Q300,000 taxable: 5%
• Above Q300,000: Q15,000 + 7% on excess
Minimum-wage earners pay zero ISR from 2026 (Decreto 13-2026).

The 2026 Reform: Decree 13-2026 (Approved April 28, 2026)

Guatemala’s Congress approved Decree 13-2026 with 124 votes on April 28, 2026, reforming ISR for salaried workers for the entire fiscal year 2026 (January 1 – December 31). The key changes:

  • An extraordinary Q3,024 deduction on top of the Q48,000 personal deduction — no documentation required, applies to ALL salaried workers, fiscal year 2026 only.
  • Minimum wage earners pay ZERO ISR from 2026.
  • ISR over-withheld between January and April 2026 is refunded to workers in the January 2027 annual liquidation.
  • From January 1, 2027, a structural reform ties the personal deduction to the highest annual minimum wage; SAT must publish the updated deduction value each year.

The calculator on this page already applies the reform: Q51,024 in deductions (Q48,000 + Q3,024) plus your deductible IGSS contributions. It also asks separately whether you receive the Q250 monthly incentive bonus and adds it to taxable income automatically — the bonus is subject to ISR, though not to IGSS.

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.

For fiscal 2026, the first Q51,024 of annual income is tax-free — the standard Q48,000 personal deduction plus the extraordinary Q3,024 deduction created by Decree 13-2026. On top of that you deduct your IGSS contributions (4.83%, deductible per Article 72 of Decree 10-2012 — a step many online calculators forget), and you can deduct up to Q12,000 of IVA paid on personal expenses (planilla filed with SAT, art. 72 lit. a) and certain life-insurance premiums.

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

The Official ISR Formula

Annual gross income (salary + Q250 monthly bonus, which IS subject to ISR)
                   - Q48,000 (personal exemption)
                   - Q3,024 (extraordinary 2026 deduction, Decree 13-2026)
                   - IGSS contributions paid (4.83% of the salary base, deductible per Art. 72)
                   - Up to Q12,000 of IVA paid on personal expenses (VAT planilla, filed in January)
                   - Life insurance premiums covering only the worker's death
= 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. The 7% rate applies only to net taxable income above Q300,000 a year.

What Counts and What Doesn’t

INCLUDED in the ISR base:

  • Base monthly salary
  • The Q250 monthly incentive bonus (Decree 78-89 — exempt from IGSS/IRTRA/INTECAP and from salary-derived benefits, but subject to ISR)
  • Regular productivity bonuses
  • Habitual commissions
  • Overtime (when paid in cash, not compensated with time off)

EXCLUDED from the ISR base:

  • Aguinaldo (Christmas bonus), up to 100% of the ordinary monthly salary (Decree 10-2012 Art. 70 num. 5)
  • Bono 14, up to 100% of the ordinary monthly salary (Art. 70 num. 6)
  • Severance for time served (Art. 70 num. 2)
  • Documented per diems and representation expenses (Art. 70 num. 4)
  • Death or disability indemnities, pensions and retirement income (Art. 70 num. 1 and 7)

Vacation cash payments are not on the Art. 70 list of exempt income.

The Q250 bonus pays no IGSS, but that does not make it ISR-exempt. The bonus IS subject to ISR. Aguinaldo and Bono 14, on the other hand, are exempt up to 100% of the ordinary monthly salary.

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: Q4,252.28 x 12 = Q51,027.36 (the Q250 bonus IS subject to ISR)
  • Less deductible IGSS (4.83% of the Q48,027.36 salary base — the bonus pays no IGSS): Q2,319.72
  • Less 2026 deductions (Q48,000 + Q3,024 extraordinary): Q51,024
  • Total deductions Q53,343.72 exceed the income → Net taxable income: Q0 (negative, treated as zero)
  • Annual ISR: Q0
  • Monthly withholding: Q0

The minimum wage worker pays no income tax — guaranteed by Decree 13-2026.

Case 2 — Q10,000 monthly salary

  • Gross monthly: Q10,000 base + Q250 bonus
  • Annual gross subject to ISR: Q10,250 x 12 = Q123,000
  • Less deductible IGSS (4.83% of the Q120,000 salary base): Q5,796
  • Less 2026 deductions (Q48,000 + Q3,024 extraordinary): Q51,024
  • Net taxable income: Q66,180
  • Annual ISR: Q66,180 x 5% = Q3,309.00
  • Monthly withholding: Q275.75

Case 3 — Q30,000 monthly salary

  • Gross monthly: Q30,000 base + Q250 bonus
  • Annual gross subject to ISR: Q30,250 x 12 = Q363,000
  • Less deductible IGSS (4.83% of the Q360,000 salary base): Q17,388
  • Less 2026 deductions (Q48,000 + Q3,024 extraordinary): Q51,024
  • Net taxable income: Q294,588
  • Annual ISR: Q294,588 x 5% = Q14,729.40
  • Monthly withholding: ~Q1,227.45

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

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

  • Gross monthly: Q50,000 base + Q250 bonus
  • Annual gross subject to ISR: Q50,250 x 12 = Q603,000
  • Less deductible IGSS (4.83% of the Q600,000 salary base): Q28,980
  • Less 2026 deductions (Q48,000 + Q3,024 extraordinary): Q51,024
  • Net taxable income: Q522,996
  • ISR: Q15,000 (on first Q300,000 at 5%) + 7% x Q222,996 = Q15,000 + Q15,609.72
  • Annual ISR: Q30,609.72
  • Monthly withholding: ~Q2,550.81

These examples use only the automatic deductions (Q48,000 + Q3,024 + IGSS), matching the calculator above. If you also file the VAT planilla for up to Q12,000 of IVA paid on personal expenses, your actual ISR drops further — the calculator stays conservative and ignores that optional deduction.

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.

The IVA credit for personal expenses (up to Q12,000) works through a planilla of invoices that you file with SAT, not with your employer, within the first 10 business days of January; the employer then takes it into account in the January reconciliation (Decreto 10-2012 art. 72 lit. a; Acuerdo Gubernativo 213-2013 arts. 68 and 71). If you have more than one employer, you give the one who pays you the most a sworn statement of what the others pay you (art. 77): SAT’s form list calls it form SAT-1901, the Declaración Jurada ante el Patrono del ISR.

Correction (24 September 2026): this paragraph referred to a Formulario SAT-1101 for projected personal expenses. That number does not appear in SAT’s list of forms, and the IVA planilla is filed with SAT, not with the employer. See our corrections policy.

Annual Filing Deadline: March 31

Under Decreto 10-2012 art. 81, an employee files the annual ISR return on employment income, and pays, only when the employer did not withhold or withheld less than it should have, within the first three months of the following year. Other income (rentals, professional fees, etc.) falls under other ISR categories with their own filing rules.

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

Common Mistakes to Avoid

  1. Leaving the Q250 bonus out of the ISR base — it pays no IGSS, but it IS subject to ISR and must be included in taxable income. Its exemption covers only IGSS/IRTRA/INTECAP and salary-derived benefits (aguinaldo, Bono 14, severance).
  2. Forgetting to deduct IGSS — your 4.83% IGSS contribution reduces the ISR base (deductible per Article 72 of Decree 10-2012). It’s not optional — every formal worker pays it — yet many online calculators forget this step.
  3. Not filing the VAT planilla — the deduction of up to Q12,000 of IVA paid on personal expenses is proven with a planilla of invoices filed in the first 10 business days of January (Art. 72).
  4. Treating Aguinaldo or Bono 14 as taxable — both are exempt up to 100% of the ordinary monthly salary (Art. 70).
  5. Using pre-reform math for 2026 — the extraordinary Q3,024 deduction from Decree 13-2026 applies to the entire fiscal year 2026, including months before the decree was approved in April.

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.