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
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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.

Unlike many countries, Guatemala has a very generous exemption: 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 add Q12,000 in personal expenses with FEL invoices and certain 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 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
  • 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, 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: because the Q250 bonus pays no IGSS, many workers assume it is also ISR-exempt — it isn’t. The bonus IS subject to ISR. Aguinaldo and Bono 14, on the other hand, are fully exempt.

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 submit up to Q12,000 in FEL-invoiced personal expenses through Form SAT-1101, 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.

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. 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 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.
  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.
  • Decreto Numero 10-2012 — Ley de Actualizacion Tributaria, Articles 72-74 (current ISR law for salaried workers).
  • Decreto Numero 13-2026 — approved April 28, 2026 with 124 votes; extraordinary Q3,024 deduction for fiscal year 2026, and from 2027 the personal deduction is tied to the highest annual minimum wage (SAT publishes the updated value each year).
  • Decreto Numero 78-89 — Ley de Bonificacion Incentivo (Q250 bonus: exempt from IGSS/IRTRA/INTECAP and excluded from salary-derived benefits, but subject to ISR).
  • 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.