Colombia uses a progressive income tax system (Impuesto sobre la Renta) with 7 brackets ranging from 0% to 39% for fiscal residents. Tax thresholds are expressed in UVT (Unidad de Valor Tributario), which for 2026 equals COP 52,374. The first 1,090 UVT (approximately COP 57 million, or about $17,300 USD at roughly 3,309 COP per USD, a secondary-source reference rate of 5 October 2026) of taxable income is taxed at 0%. Taxable income is what remains after mandatory pension and health contributions and the 25% labour-income exemption, so gross pay can be higher. Non-residents pay a flat 35% on Colombian-sourced income. Colombia is popular with digital nomads thanks to favorable tax treatment and the growing expat community in cities like MedellÃn and Bogotá.
Note: These are marginal rates — you only pay the higher rate on income within each bracket.
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Colombia has 7 progressive tax brackets for 2026: 0% on income up to 1,090 UVT, 19% on 1,090-1,700 UVT, 28% on 1,700-4,100 UVT, 33% on 4,100-8,670 UVT, 35% on 8,670-18,970 UVT, 37% on 18,970-31,000 UVT, and 39% on income above 31,000 UVT. These apply to fiscal residents.
The UVT (Unidad de Valor Tributario) for 2026 is COP 52,374, up from COP 49,799 in 2025. The UVT is adjusted annually based on CPI inflation. To convert UVT to pesos, multiply the UVT amount by 52,374. For example, the 1,090 UVT tax-free threshold equals approximately COP 57 million.
Colombia's tax-free threshold is 1,090 UVT, which equals COP 57,087,660 (about $17,300 USD at roughly 3,309 COP per USD) for 2026. Taxable income below this amount is not subject to income tax; taxable income is after mandatory pension and health contributions and the 25% labour-income exemption, so gross salary can be higher. This threshold applies to fiscal residents who are taxed on worldwide income.
Colombia's income tax returns are typically due between August and October, with specific dates based on the last two digits of your NIT (tax ID number). DIAN (Dirección de Impuestos y Aduanas Nacionales) publishes the exact calendar each year. Late filing results in penalties and interest.
Under article 10 of the Estatuto Tributario, you are a tax resident of Colombia if you stay more than 183 days (continuous or not) in any period of 365 consecutive days; Colombian nationals can also be treated as residents through family, income or asset ties. Residents pay progressive rates (0-39%) on worldwide income. Non-residents pay a flat 35% on Colombian-sourced income only. Dividends from Colombian companies to non-residents are taxed at 20%.
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Last Updated: October 2026