This article provides a comprehensive overview of the individual income tax framework applicable for residents during 2025. The information below outlines the current progressive tax scheme, income brackets, and core assessment details for individual taxpayers.
Individual Income Tax Structure: Key Elements for 2025
Personal income tax in this jurisdiction is assessed on a progressive scale, meaning higher income levels are taxed at incrementally higher rates. The tax is based on total individual income, with all figures denominated in Guatemalan Quetzal (GTQ). For reader convenience, approximate USD equivalents are also provided using an assumed exchange rate of 1 GTQ = $0.13 (USD).
Income Tax Brackets and Rates
| Income Range (GTQ) | Income Range (USD) | Rate (%) |
|---|---|---|
| GTQ 0 – GTQ 300,000 | $0 – $39,000 | 5% |
| Over GTQ 300,000 | Over $39,000 | 7% |
Individuals with annual taxable income below GTQ 300,000 (about $39,000) are subject to a 5% tax rate. For amounts exceeding this threshold, any additional income is taxed at 7%. The progressive structure is designed to collect a higher proportion of tax from higher income earners, while keeping the lower bracket relatively accessible.
Assessment Basis and Methodology
The tax base is the total income of the individual within the fiscal year. Current regulations do not specify additional fixed or variable rates outside the bracketed progressive structure above. As of 2025, no general surtaxes apply to individual income, and there are no disclosed holding period requirements impacting the calculation of the tax itself.
Additional Framework Details
- Currency: Guatemalan Quetzal (GTQ)
- Tax Structure: Progressive rate system
- Assessment Basis: Total individual income in a given tax period
- Surtaxes: None disclosed for the 2025 fiscal year
Official figures regarding the overall national tax rate or historical trends are not publicly available at this time. Where data is limited, it is typically due to annual regulatory reviews or updates from local tax authorities.
Individual Income Tax Table (Summary)
| Income Bracket (GTQ) | Income Bracket (USD) | Applicable Rate (%) |
|---|---|---|
| GTQ 0 – GTQ 300,000 | $0 – $39,000 | 5% |
| Over GTQ 300,000 | Over $39,000 | 7% |
Pro Tips for Managing Individual Income Tax in 2025
- Keep precise records of all sources of annual income, especially if approaching the GTQ 300,000 threshold, to avoid errors in tax obligations.
- Consider tax planning strategies early in the fiscal year to minimize exposure to higher brackets, especially for variable or commission-based income.
- If part of your income is earned in foreign currencies, use current official exchange rates for accurate reporting and bracket placement.
- Verify your tax assessment annually against official government publications to stay aligned with potential regulatory updates that may impact tax rates or calculation methods.
Official Source Reference
For authoritative details, taxpayers are encouraged to review the latest publications and regulatory updates on the Superintendencia de Administración Tributaria main website.
In summary, the individual income tax for 2025 is governed by a straightforward progressive system, with rates set at 5% for earnings up to GTQ 300,000 ($39,000), and 7% for any income above that threshold. There are no disclosed general surtaxes or holding period requirements. Maintaining diligent financial records and aligning with the official tax authority’s guidance remains the best approach to compliance and efficient tax management.