Income Tax Update for Natural Persons in Honduras – 2025
- Galindo & Asociados
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The Honduran Tax Administration Service (SAR) has announced, through communication SAR 01-2025, the update of the Progressive Income Tax (ISR) Table for natural persons, effective from the fiscal year 2025. This modification responds to the legal obligation to annually adjust tax brackets based on inflation, as established by Article 22 of the Income Tax Law, amended by Decree 20-2016.
For the year 2025, the adjustment is based on an annual inflation rate of 3.88%, according to official data from the Central Bank of Honduras (BCH) as of the end of 2024. This revision will benefit over 200,000 taxpayers and represents an estimated fiscal sacrifice of 392 million lempiras, as part of an effort to maintain tax equity.
New Progressive Income Tax Table for 2025
The updated Progressive Table sets the following ranges of annual taxable net income and their respective tax rates:
It is important to note that the taxable net income does not consider the L40,000 deduction for medical expenses. Therefore, when calculating the payable tax, this amount must be taken into account in the declarations.
SAR clarified in its statement that the annual update of the Progressive Table aims to maintain tax fairness and ease the fiscal burden on taxpayers with lower incomes. By raising the exemption threshold and adjusting the brackets according to inflation, the purchasing power of Hondurans is protected, and a fairer tax system is promoted.
For more information on how this innovation may affect your operation or investment in Honduras, the Galindo & Asociados team the Galindo & Asociados team is at your disposal.
Carlos Galindo
Socio de Impuestos
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