Income tax in Honduras 2026
Personal income tax (ISR) is paid in bands, not at a single rate: each portion of your net taxable income pays its own band’s percentage. And below a certain amount you pay nothing at all.
Table in force for the 2026 tax year, under Acuerdo SAR-01-2026, published in La Gaceta No. 37,051 of 23 January 2026.
If you earn less than this, you pay no ISR.
Net taxable income of up to L 228,324.32 a year is exempt — around L 22,360.36 a month in the way the SAR presents the same table.
Progressive table 2026
| Rate | From (annual) | To (annual) | Monthly equivalent |
|---|---|---|---|
| Exempt | L 0.01 | L 228,324.32 | up to L 22,360.36 |
| 15% | L 228,324.33 | L 348,154.10 | L 22,360.37 – L 32,346.18 |
| 20% | L 348,154.11 | L 809,660.75 | L 32,346.19 – L 70,805.06 |
| 25% | L 809,660.76 | and above | from L 70,805.07 |
Source: Acuerdo SAR-01-2026, Article 1. The annual figures are those in the acuerdo; the monthly column is how the SAR presents the same bands.
It is progressive: not all your income pays the same rate
A common mistake is thinking that moving into the next band makes all your income pay the higher rate. It does not work that way. Each band applies only to the portion falling within it: the first L 228,324.32 pays nothing however much more you earn, and only the excess above that starts paying 15%.
Why the table changes every year
It is not a discretionary decision. According to the recitals of Acuerdo SAR-01-2026, the reform in Article 1 of Decreto Legislativo No. 20-2016 provides that the scale is adjusted automatically each year by applying the year-on-year change in the Consumer Price Index (IPC) published by the Banco Central de Honduras.
For 2026 that adjustment was 4.98%, matching the IPC change at the close of 2025 per the BCH’s Boletín de Prensa No. 01/2026. That is why a new table appears each January: it is last year’s plus inflation.
Your employer must use this table from January
Article 2 of the acuerdo is explicit: withholding agents must use this table to calculate their employees’ monthly withholding, applicable from 1 January 2026. If they are still withholding on last year’s table, they are deducting too much.
Source
Acuerdo Ministerial No. SAR-01-2026 — Adjustment of the progressive income-tax scale for natural persons, La Gaceta No. 37,051, 23 January 2026.
The scale applies over the Ley del Impuesto Sobre la Renta (Decreto No. 25 of 1963) and its annual adjustment derives from Decreto Legislativo No. 20-2016.