The Honduran Revenue Administration Service (SAR) has officially announced the update of the Progressive Income Tax Table for the 2026 fiscal year. The tax rates will be applied to the calculation and collection of Income Tax (ISR) for individuals in Honduras.
According to SAR Communiqué 02-2026, individuals earning a monthly salary equal to or less than L22,360.36 will be exempt from paying Income Tax during the 2026 fiscal year. More than 200,000 taxpayers nationwide are benefiting from this.
What is this update based on?
The new table was calculated in accordance with the law, using the interannual inflation rate of 4.98%. The data is recorded at the close of 2025 and published by the Central Bank of Honduras (BCH). According to SAR, this measure represents an estimated fiscal sacrifice of approximately L500 million ($18.9 million). It aims to easing the tax burden on taxpayers.
Tax brackets and rates in 2026
The 2026 Progressive Tax Table in Honduras is established as follows:
- Taxpayes who are exempt:
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- Annual net taxable income: up to L228,324.32
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- Monthly salary: up to L22,360.36
- Tax rate by 15%:
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- Annual income: from L228,324.33 to L348,154.10
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- Monthly salary: from L22,360.37 to L32,346.18
- Tax rate by 20%:
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- Annual income: from L348,154.11 to L809,660.75
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- Monthly salary: from L32,346.19 to L70,805.06
- Tax rate by 25%:
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- Annual income: from L809,660.76 and above
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- Monthly salary: from L70,805.07 and above
Assessment of the reform
In conclusion, it is important for taxpayers and employers located in Honduras to consider this update when conducting tax planning and calculating ISR (Income Tax) withholdings for the year 2026. This management will be necessary to correctly comply with the provisions established by the Honduran SAR (Revenue Administration Service).
Honduras is easing the tax pressure on taxpayers. Therefore, it is a great opportunity to extend your business in Latin America, expanding your investment fund, or multinational into Honduras through our tax services for international companies.
At Auxadi, we offer comprehensive services in accounting, tax, payroll, transfer pricing and corporate legal services to multinationals and funds. With experience since 1979 and a presence in over 50 countries, including 26 proprietary subsidiaries, our advanced technological platform, MySPV, and proven methodology enable us to guarantee efficient management in compliance with local regulations.
Author:
Betsee Fernanda Gutierrez Lara
Tax Supervisor – HN
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All information contained in this publication is up to date on 2026. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.