Personal income tax
Individual annual net taxable income up to B/.11,000 is taxed at 0%; the next band up to B/.50,000 at 15%; above that the tax is B/.5,850 plus 25% of the excess.
Filing & deadlines
DGI's e-Tax 2.0 help explains how to open Herramientas → Cálculo sobre la Renta before login and select employment sector and salary. Income-tax results exclude a complete social-security calculation.
Business and scope
DGI states a general corporate net-income rate of 25%, with exceptions. Individual tax bands do not apply to company profits.
Salary and take-home pay calculator
2026 annual estimate for a resident private-sector employee with one job and fixed salary from 16 December 2025 through 31 December 2026. Automatically adds three statutory thirteenth-salary payments. Bonus means fully taxable, contributory performance pay, not an exempt gift.
Annual estimate · 2026
- Annual gross earnings
- $26,000.01
- Employee CSS contributions
- $2,484.99
- Employee pension saving
- $0.00
- Annual income tax
- $2,250.00
- Educational insurance
- $300.00
- Annual income after tax and payroll deductions
- $20,965.02
- Average per calendar month (annual net ÷ 12)
- $1,747.09
Calculation details
- Statutory thirteenth salary
- $2,000.01
- Tax deductions applied
- $0.00
- Taxable income after allowances
- $26,000.01
CSS is 9.75% on ordinary pay and 7.25% on each thirteenth-salary payment; educational insurance is 1.25% on ordinary pay only. CSS and educational insurance do not reduce salary income-tax base. Thirteenth-salary accrual closes 15 April, 15 August and 15 December; later December bonus accrues into 2027. Joint filing assumes the spouse has no income. Enter only documented qualifying deductions: main-home mortgage interest capped at USD 15,000; education-loan interest; medical/health insurance; approved private pension limited to 10% of gross for tax relief. Private pension contributions are subtracted from net; other expenses only affect tax. Excludes school-fee deductions, representation allowances, exempt gifts, foreign income and termination payments. Individual instalment rounding can affect annual totals by cents.
Official basis and tool instructions
Official e-Tax income-tax calculator instructions
This link opens the authority’s service or instructions. Check its supported year and eligibility; a calculation or draft does not submit a tax return.
Open official resource ↗Official basis and tool instructions
- Dirección General de Ingresos (DGI) — Reference 1https://dgi.mef.gob.pa/Preguntas/DeclaracionInformes
- Dirección General de Ingresos (DGI) — Reference 2https://dgi.mef.gob.pa/DInforme/Tarifa
- Dirección General de Ingresos (DGI) — Reference 3https://dgi.mef.gob.pa/DInforme/Planilla03
- Dirección General de Ingresos (DGI) — Reference 4https://dgi.mef.gob.pa/DInforme/P-Presentacion
Official sources
Sources checked 28 Oct 2026 · Current DGI guidance reviewed 2026-10-28