North & Central America

Honduras: tax at a glance

A territorial system with income tax up to 25%, plus a 5% solidarity surcharge on high incomes and a 15% sales tax.

Territorial Last verified July 2026

The taxes

Personal income (top)
25%
Corporate income
25%
Capital gains
10%
VAT / ISV
15%
Dividends (WHT)
10%
Interest (WHT)
10%
Royalties (WHT)
25%
Social security (employee)
~4% (IHSS 2.5% + RAP 1.5%)
Social security (employer)
~10.6% (IHSS 7.08% + RAP 2% + INFOP 1.5%)
Wealth tax
None
Inheritance / estate
None
Property tax
Municipal property tax ~0.35% of value (varies by municipality)
Other
A 5% solidarity surcharge applies on corporate income over HNL 1M, bringing the effective top corporate rate to ~30%. An 18% ISV applies on tobacco, alcohol and luxury goods.

How the system works

Tax system
Territorial
Foreign income
Largely outside scope (territorial)
Taxes by citizenship
No
Exit tax
No
CFC rules
No
CRS
Not participating

The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.

Frequently asked

What is the income tax rate in Honduras?

The top marginal personal income tax rate in Honduras is 25%. Progressive to 25% (plus surcharges). This is a territorial system, so only Honduran-source income is taxed.

What is the corporate tax rate in Honduras?

The headline corporate income tax rate is 25%.

Does Honduras tax capital gains?

Capital gains for individuals: 10%.