North & Central America

Guatemala tax rates 2026

Guatemala runs a territorial system, so only Guatemalan-source income is taxed. Personal rates are low and flat, and IVA stands at 12%.

Territorial Last verified

The taxes

Guatemala tax rates
Personal income (top)7%Employment income is taxed at 5% up to GTQ 300k and 7% above that, after exemptions. The system is territorial, so foreign-source income is exempt.
Corporate income25%
Capital gains10%
VAT / IVA12%
Dividends (WHT)5%
Interest (WHT)10%
Royalties (WHT)15%
Social security (employee)4.83%, paid into IGSS.
Social security (employer)Roughly 12.67%, paid into IGSS.
Wealth taxNone
Inheritance / estateInheritance and gift tax, progressive from roughly 1% to 6% depending on the relationship between giver and recipient.
Property taxIUSI, the property tax, runs roughly 0.2–0.9% of cadastral value.

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

Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.

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