Uruguay Personal Income Tax
Detailed personal income tax rates and rules for Uruguay in 2026.
Uruguay imposes a progressive personal income tax (IRPF - Impuesto a la Renta de las Personas Físicas) with eight brackets on employment and self-employment income, ranging from 0% to 36%. Capital income (investment income) is taxed separately at a flat 12%. Under the territorial system, only Uruguayan-source income is generally taxable. New tax residents can elect to be taxed on a territorial basis for 11 years (including the year of arrival plus 10 additional years), after which worldwide income becomes taxable. Alternatively, new residents can opt to pay a flat 7% on foreign-source investment income from the start.
| Income Range (UYU) | Tax Rate |
|---|---|
| UY$0 – UY$472K | 0% |
| UY$472K – UY$674K | 10% |
| UY$674K – UY$1.0M | 15% |
| UY$1.0M – UY$2.0M | 24% |
| UY$2.0M – UY$3.0M | 25% |
| UY$3.0M – UY$4.6M | 27% |
| UY$4.6M – UY$6.9M | 31% |
| UY$6.9M+ | 36% |
Filing Deadline
Varies by taxpayer category (generally within the first half of the year following the tax period)
Residency Rule
Uruguay considers individuals as tax residents if they are present in Uruguay for more than 183 days in a calendar year, or if their center of vital interests (economic or personal) is in Uruguay. New residents benefit from an 11-year tax holiday on foreign-source income (territorial treatment), or can elect to pay 7% on foreign investment income from day one.
How Uruguay Income Tax compares
Uruguay’s top personal income tax rate of 36% is the 54th highest of 203 countries TaxAtlas tracks, above the global average of 27.7% and South America’s regional average of 30.5%.
