Paraguay Personal Income Tax
Detailed personal income tax rates and rules for Paraguay in 2026.
Paraguay imposes a personal income tax (IRP) at 8% on income between 36 million and 120 million PYG and 10% on income above 120 million PYG annually. Only Paraguayan-source income is taxable under the territorial system. Foreign-source income is completely exempt. The low rates and territorial system make Paraguay one of the most tax-friendly countries in South America.
| Income Range (PYG) | Tax Rate |
|---|---|
| ₲0 – ₲36.0M | 0% |
| ₲36.0M – ₲120.0M | 8% |
| ₲120.0M+ | 10% |
Filing Deadline
March (varies by tax ID ending)
Residency Rule
Paraguay operates a territorial tax system. Only income sourced within Paraguay is taxable, regardless of residency. Permanent residency is relatively easy to obtain.
How Paraguay Income Tax compares
Paraguay’s top personal income tax rate of 10% is the 169th highest of 203 countries TaxAtlas tracks, below the global average of 27.7% and South America’s regional average of 30.5%.
