This guide covers the essential details of the individual income tax framework in Honduras for 2025. Learn exactly how personal income is taxed, the current rate brackets, and key considerations for compliance with Honduran tax authorities.
Individual Income Tax Structure in Honduras (2025)
Honduras operates a progressive income tax system for individuals. Personal income tax liability is calculated based on total income, with rates increasing across defined income thresholds. The official currency is the Honduran Lempira (HNL). Where relevant, USD equivalents are referenced using an approximate rate of 1 HNL = $0.041 USD (2025 rate for clarity).
2025 Income Tax Brackets
The following table outlines the current progressive income tax brackets applicable to resident individuals in Honduras for 2025:
| Taxable Income (HNL) | Taxable Income (USD) | Rate (%) |
|---|---|---|
| HNL 0.01 – HNL 217,493.16 | $0.0004 – $8,922.22 | 0% |
| HNL 217,493.17 – HNL 331,638.50 | $8,922.22 – $13,597.18 | 15% |
| HNL 331,638.51 – HNL 771,252.38 | $13,597.18 – $31,621.35 | 20% |
| Over HNL 771,252.39 | Over $31,621.35 | 25% |
There is no tax on the first HNL 217,493.16 ($8,922.22) of income. Progressively higher rates apply to income exceeding this threshold, as detailed above.
Surtaxes in Honduras
In addition to the progressive personal income tax, Honduras imposes a specific surtax under certain high-income conditions. The current provision is as follows:
| Surtax Condition | Rate (%) |
|---|---|
| Gross income equal to or greater than HNL 10,000,000 (~$410,000) when the progressive income tax is less |
1.5% |
If an individual earns a gross income of HNL 10 million ($410,000) or more in a given year and the standard progressive tax is less than the surtax calculation, the 1.5% additional tax is applied. This provision mainly affects very high-income earners.
Assessment and Compliance Essentials
Personal income tax in Honduras is assessed on a calendar year basis, using total income as the assessment basis. Obligations apply to all resident individuals with income above the non-taxable bracket. No official holding period (minimum or maximum) is stipulated for these tax obligations as of 2025.
Quick Summary Table: Main Features
| Feature | Details |
|---|---|
| Tax Type | Progressive personal income tax |
| Currency of Assessment | Honduran Lempira (HNL) |
| Assessment Basis | Income |
| Top Marginal Rate | 25% |
| Surtax on High Incomes | 1.5% (if conditions met) |
Pro Tips for Managing Personal Income Tax in Honduras
- Keep Thorough Records: Maintain complete documentation of your annual income and deductions. This improves compliance and reduces auditor queries.
- Monitor Income Thresholds: Regularly review your total income to anticipate when you might enter a higher tax bracket or trigger the surtax.
- Seek Local Guidance for Complex Situations: If you have international income or approach the HNL 10 million threshold, consult a local tax advisor familiar with Honduran requirements.
- Leverage the Non-Taxable Allowance: Ensure you accurately calculate the portion of your income falling within the 0% bracket to avoid overpayment.
Official Government Source
For complete regulations and updates on Honduran tax law, consult the Servicio de Administración de Rentas (SAR).
In summary, Honduras applies a clear progressive income tax policy with a top marginal rate of 25% and a higher-income surtax provision in 2025. Accurate income tracking is crucial, especially for those near the upper tax brackets or encountering the high-income surtax. Local tax rules can change, so it’s wise to verify details directly with the Honduran fiscal authority and stay informed about annual adjustments.