Nicaragua Personal Income Tax
Detailed personal income tax rates and rules for Nicaragua in 2026.
Income TaxNIO
Nicaragua imposes a progressive personal income tax with five brackets from 0% to 30%. Only Nicaraguan-source income is taxable under the territorial system. The exempt amount is NIO 100,000 annually. Employment income is subject to monthly withholding.
| Income Range (NIO) | Tax Rate |
|---|---|
| C$0 – C$100K | 0% |
| C$100K – C$200K | 15% |
| C$200K – C$350K | 20% |
| C$350K – C$500K | 25% |
| C$500K+ | 30% |
Filing Deadline
March 31
Residency Rule
Nicaragua operates a territorial tax system. Only income sourced within Nicaragua is taxable regardless of residency. Residents are those domiciled in Nicaragua or present for more than 180 days.
How Nicaragua Income Tax compares
Nicaragua’s top personal income tax rate of 30% is the 92nd highest of 203 countries TaxAtlas tracks, above the global average of 27.7% and North America’s regional average of 24.4%.
Nicaragua
30%
North America average
24.4%
Global average
27.7%
