Honduras Tax Rates
Honduras operates a progressive tax system administered by the Servicio de Administración de Rentas (SAR). Personal income tax rates range from 15% to 25%, the corporate tax rate is 25% (plus a solidarity contribution surcharge), and the sales tax (ISV) is 15%. Honduras taxes residents on worldwide income and non-residents on Honduran-source income.
Top Income Tax Rate
25%
Corporate Tax Rate
25%
VAT / Sales Tax
15%
Capital Gains Tax
10%
Detailed Tax Information
Income Tax Brackets
Honduras imposes a progressive personal income tax with four brackets. The first bracket is exempt (up to approximately HNL 182,848 annually). Rates are 15%, 20%, and 25% on higher income. Residents are taxed on worldwide income. Employment income is subject to monthly withholding.
| Income Range | Tax Rate |
|---|---|
| L 0 – L 183K | 0% |
| L 183K – L 279K | 15% |
| L 279K – L 650K | 20% |
| L 650K+ | 25% |
Corporate Tax
Honduras imposes a 25% corporate income tax. An additional solidarity contribution surcharge of 5% applies on taxable income exceeding HNL 1 million, bringing the effective top rate to 30%. Companies in Export Processing Zones (ZIP) and Free Zones (ZOLI) enjoy full income tax exemptions for specified periods.
Standard Rate
25%
Capital Gains Tax
Capital gains in Honduras are taxed at a flat 10% rate on the net gain. This applies to gains from the sale of real estate, shares, and other assets.
Rate
10%
VAT / Sales Tax
Honduras levies a 15% sales tax (ISV) on most goods and services. A higher rate of 18% applies to alcoholic beverages, tobacco, and certain luxury goods. Basic food items, medicines, and exports are exempt or zero-rated.
Standard Rate
15%
Cryptocurrency Tax
Honduras does not have specific cryptocurrency tax legislation. The Central Bank has not recognized virtual currencies as legal tender. Crypto gains would be subject to general income tax rules if considered Honduran-source income.
Tax Treaties
Honduras does not have comprehensive double taxation agreements in force. The country participates in some international tax cooperation initiatives.
Treaty Network
0
Double taxation agreements
Key Details
Relocate to Honduras
See how much you could save by moving here from your current country.
+$16K
Tax in United States
$24K
24.4% effective
Tax in Honduras
$9K
8.5% effective
You Save
65.1%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
