The United States hosts approximately 1–1.2 million Honduran-Americans, with communities concentrated in New York City (particularly the Bronx), New Jersey, Houston, Miami, New Orleans, and Los Angeles. Honduras TPS (Temporary Protected Status) — designated since 1998 following Hurricane Mitch and periodically renewed — has provided work authorization for hundreds of thousands of Hondurans in the US for over two decades, making Honduras one of the longest-running TPS countries. Remittances from the US to Honduras are economically transformative: Honduras received approximately $8–9 billion in annual remittances (primarily from the US), representing approximately 26% of GDP — among the highest remittance-to-GDP ratios in Latin America. The HNL/USD corridor sees gradual but steady HNL depreciation, meaning USD remittances buy progressively more HNL over time.

By Daniel, Founder of CountryTaxCalc

Daniel has spent 5+ years researching tax systems across 95+ countries and all US states to make tax comparison accessible to everyone. For corrections, contact us.

Last Updated: April 2026

The Big Picture

🇭🇳 Honduras

0–25%

Progressive DEI Tax, HNL income

Honduras's Servicio de Administración de Rentas (SAR, formerly DEI) taxes residents at progressive rates: 0% on income below HNL 187,064/year (approximately USD 7,600), 15% on HNL 187,064–280,836, 20% on HNL 280,836–561,672, 25% above HNL 561,672. Employee IHSS (social security): 2.5% on wages. Honduras operates a territorial tax system — Honduran nationals residing abroad are generally not taxed on foreign-source income. HNL/USD has depreciated steadily: from approximately HNL 19/USD (2015) to HNL 24.7/USD (2024), representing gradual but meaningful devaluation.

🇺🇸 United States

10–37%

Federal 10–37% + State Tax, FICA

US federal income tax: 10–37% on ordinary income. Standard deduction: $14,600 (single) / $29,200 (MFJ) in 2024. FICA: 7.65% employee. State taxes: 0% (TX, FL) to 13.3% (CA). Honduran-Americans are concentrated in New York/New Jersey (large Bronx and New Jersey communities), Houston, New Orleans, Miami, and Los Angeles. TPS (Temporary Protected Status) has been a critical immigration status for Hondurans — Honduras has been designated for TPS since 1998 following Hurricane Mitch, providing work authorization for hundreds of thousands of Hondurans.

Typical Annual Savings

At $38,000 annual (New York) income:

US wages are 7–12× Honduras equivalents; HNL gradual depreciation benefits remittance senders

The Honduras-USA comparison centers on wage access and remittance economics. HNL has depreciated gradually vs USD — from HNL 19/USD (2015) to HNL 24.7/USD (2024), about 30% depreciation over a decade. This is slower depreciation than many other corridors (better than Venezuela, Argentina, or Ghana) but meaningful for long-term family planning. US wages for construction, food service, and service workers are 7–12× Honduras equivalents in nominal USD. Hondurans with TPS status have work authorization and can legally enter the formal US labor market.

Tax Savings by Income Level

IncomeHN TaxUS TaxSavings10-Year
$30,000 (NY) ~14% HN (0-15% brackets)~40% US (federal + FICA + NY state)US 26% higher tax but wages 8-12x HondurasUS Social Security builds entitlement; Honduras IHSS pension provides very limited income
$50,000 (TX) ~20% HN (20% bracket)~33% US (federal + FICA, no TX)Texas saves NY/CA state income tax — key advantage for Houston Honduran communityHNL depreciation: USD savings in US bank preserve purchasing power better than HNL savings
$80,000 (FL) ~23% HN (approaching 25%)~36% US (federal + FICA, no FL)Florida: no state income tax — full federal structure only; better than NY or CA for Honduran-AmericansHNL/USD: every USD remitted buys ~30% more HNL than in 2015 — structural depreciation benefit
💡

CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. Learn more about our affiliate partnerships

USD to HNL Transfers

Wise

★ 4.3 Trustpilot  ·  287,413 reviews

Wise offers transparent USD-to-HNL international transfers for the US-Honduras corridor with competitive fees and exchange rates.

⚠ For currency exchange only — not a bank account replacement.

Send USD to Honduras with Wise →
Honduran Remote Employment

Deel

★ 4.7 Trustpilot  ·  8,728 reviews

Deel enables compliant employment for Honduran professionals working remotely for US companies — enabling USD wages while living in Honduras's lower cost environment.

⚠ For employers and companies only — not for individual freelancers or employees.

Remote Work for Honduran Professionals →

Honduras Pros and Cons

✅ Pros

  • Honduras's income tax rates (max 25%) are significantly lower than US effective rates for most workers
  • Lower cost of living — food, housing, and domestic services dramatically cheaper than US cities
  • Family and community connections; returning to Honduras for retirement can be financially attractive with USD savings
  • Honduras's Bay Islands (Roatán, Útila) are popular for international residents and have lower cost of living than US coastal areas
  • Honduran territorial tax system: Hondurans abroad are not taxed on foreign earnings

❌ Cons

  • Honduran wages are 7–12× lower than US equivalents across most employment categories
  • HNL has depreciated approximately 30% vs USD over the past decade — domestic savings lose purchasing power
  • Honduras has among the highest homicide rates in Latin America, though rates have declined under recent security initiatives
  • Honduras's formal labor market has high unemployment and underemployment
  • Limited healthcare infrastructure; significant out-of-pocket health costs for middle-class Hondurans

United States Pros and Cons

✅ Pros

  • US wages 7–12× Honduras equivalents for construction, food service, agriculture, and service sectors
  • TPS (since 1998): Hondurans with TPS status have work authorization and can legally participate in the formal US labor market, pay taxes, and receive Social Security credits
  • Multiple established US-to-Honduras remittance providers with competitive fees (Remitly, Western Union, Uniremit)
  • Texas (Houston) and Florida (Miami) offer Honduran-Americans zero state income tax on top of federal rates
  • HNL gradual depreciation means USD remittances buy progressively more HNL over time — a structural advantage

❌ Cons

  • US taxes citizens and permanent residents on worldwide income
  • TPS has faced repeated legal and political challenges — Hondurans with TPS live with ongoing uncertainty about status renewal
  • New York and New Jersey (major Honduran hubs) have high state income taxes on top of federal rates
  • Many Hondurans in the US remain undocumented without TPS or other legal status — vulnerable to enforcement
  • No Honduras-US Social Security totalization agreement — US FICA payments do not count toward Honduran IHSS entitlement

Frequently Asked Questions

Q: What is TPS Honduras and does it still protect Hondurans in the US?

Honduras has been designated for Temporary Protected Status (TPS) since December 1998, when it was first designated following Hurricane Mitch. TPS provides eligible Hondurans with protection from deportation and authorization to work legally in the US. Honduras TPS has been extended periodically by successive administrations. Under TPS, Hondurans can obtain work authorization, Social Security numbers, and pay US taxes — building Social Security and Medicare credits. As of April 2026, the status of Honduras TPS under the Trump administration involves ongoing litigation — attempts to terminate TPS for Honduras (and other long-standing TPS countries) have faced court challenges. Hondurans with TPS should monitor USCIS updates and consult an immigration attorney for current status. TPS does not lead to permanent residence on its own.

Q: How do Honduran-Americans send money to Honduras?

US-to-Honduras is a high-volume, well-served remittance corridor. Active providers: Remitly (excellent rates and fees for Honduras, fast delivery), Western Union (extensive Honduras agent network including Hondutel, Banco Occidente agents), MoneyGram, Uniremit (Honduras-specialist service), and Banco Atlántida-affiliated transfer services. Most transfers are delivered to Honduran bank accounts or cash pickup at commercial agents and pharmacies (Cruz Verde agents are common). The HNL/USD exchange rate is relatively transparent — the Central Bank of Honduras (BCH) manages a crawling peg that allows gradual HNL depreciation. Wise supports HNL transfers with competitive rates. $500 remittances typically incur $5–12 in fees via competitive providers, with HNL equivalent improving annually as HNL depreciates.

Q: Does the Honduras-USA tax comparison differ for high-skill Honduran professionals?

Honduran professionals (doctors, engineers, technology workers, business owners) in the US face the same US federal tax structure as all residents. The key state-level variable: a Honduran professional in Houston (no state income tax) at $120,000 pays approximately $36,000 in federal + FICA taxes — no Texas state tax. The same professional in New York City pays approximately $36,000 federal + FICA + $11,000 NY state + $4,700 NYC city = approximately $51,700 total. Houston adds $15,700/year more take-home vs NYC. For high-earning Honduran-Americans, the choice of US city and state significantly affects total tax burden — Texas and Florida are the clear winners. Honduran professionals considering returning to Honduras: the 25% top Honduras rate on $50,000+ annual income is competitive with US state income taxes but Honduras wages remain much lower.

Related Comparisons

El Salvador vs USA Tax ComparisonGuatemala vs USA Tax ComparisonDominican Republic vs USA Tax ComparisonTexas No Income Tax BreakdownZero Income Tax Countries 2026