Guatemala applies a two-tier progressive income tax (ISR — Impuesto Sobre la Renta) on employment income: 5% on the first GTQ 300,000 (~$38,700) of annual taxable income, and 7% on income above that threshold (on the excess only). Before applying these rates, individuals receive an annual personal deduction of GTQ 48,000 (~$6,200) plus up to GTQ 12,000 in VAT paid on personal purchases and up to 5% of income in qualifying donations. Social security contributions (IGSS — Instituto Guatemalteco de Seguridad Social) are 4.83% for employees, with employers paying 12.67%. Guatemala is Central America's largest economy by GDP, anchored by agriculture (coffee, bananas, sugar, cardamom), a growing manufacturing sector, and significant remittance flows. Guatemala City is the region's commercial and financial hub, while colonial Antigua Guatemala (UNESCO World Heritage) is a growing digital nomad destination. Cost of living: ~$800-1,200/month in Antigua or Guatemala City.
This hub links to every Guatemala tax guide and calculator on CountryTaxCalc — covering income tax rates, and tools to calculate your take-home pay.
Guatemala's income tax uses ISR (income tax): 5% on first GTQ 300,000/year (~$38,700), 7% above. Annual personal deduction GTQ 48,000 (~$6,200). IGSS social: 4.83% employee. Guatemala City is Central America's largest economy. Quetzal stable vs USD.. Use the calculator to estimate your take-home pay after income tax:
| Income | Rate |
|---|---|
| Annual personal deduction | GTQ 48,000 exempt (~$6,200) |
| Taxable income up to GTQ 300,000/year (~$38,700) | 5% (tax = up to GTQ 15,000) |
| Taxable income above GTQ 300,000/year | GTQ 15,000 + 7% on excess |
| VAT offset deduction | Up to GTQ 12,000 VAT paid on purchases |
| IGSS social security (employee) | 4.83% of gross salary |
| IGSS social security (employer) | 12.67% of gross salary |
Guatemala tax connects with these hubs on CountryTaxCalc:
CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships
★ 4.3 Trustpilot · 287,413 reviews
Transfer money to or from Guatemala at the real exchange rate. Save up to 5x vs banks on international transfers. Hold multiple currencies with a Wise account.
⚠ For currency exchange only — not a bank account replacement.
Send Money To/From Guatemala →★ 4.8 Trustpilot · 1,625 reviews
US citizen living in Guatemala? You still file a US federal return. Greenback's CPAs handle US expat tax from anywhere in the world.
⚠ Not the cheapest option — best for complex situations and expats who want a dedicated CPA.
US Citizens: File Your US Taxes →Interested in reaching this audience? Advertise on CountryTaxCalc →