Panama Income Tax Calculator 2026 (ISR for Individuals)
Calculate Panama's income tax for individuals in 2026: exempt up to B/.11,000, 15% up to B/.50,000 and B/.5,850 plus 25% above, after deductible expenses.
Deductible expenses include mortgage interest on your home (up to B/.15,000), education interest and expenses, medical expenses and insurance and donations to approved charities, each with its own limit.
What it does
Under article 700 of Panama's Fiscal Code, individuals pay no income tax on the first B/.11,000 of net taxable income a year. The part between B/.11,000 and B/.50,000 pays 15%, and above B/.50,000 the tax is B/.5,850 plus 25% of the excess. Employers withhold it from each salary, including the décimo tercer mes.
How to use it
- Type your annual taxable income.
- Add your deductible expenses.
- Read the tax, the withholding per salary and the rates.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
How much ISR on B/.60,000 with B/.5,000 of deductions?
The net base is B/.55,000: B/.5,850 plus 25% of B/.5,000, B/.7,100 a year.
Up to what income is there no tax?
Up to B/.11,000 a year of net taxable income.
Why divide by 13?
Because the year has 12 salaries plus the décimo tercer mes, and the tax is withheld from all of them.
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