Colombia Personal Income Tax Guide 2026

Overview — IIT (Impuesto a la Renta)

The Impuesto a la Renta is Colombia's primary personal income tax. The UVT (Unidad de Valor Tributario) is an inflation-indexed unit used to denominate tax brackets, deductions, and thresholds. For 2026, 1 UVT is approximately COP 47,000 (subject to annual DIAN adjustment). Residents are taxed on worldwide income; non-residents are taxed only on Colombian-source income. The tax year runs from 1 January to 31 December, with the annual return due by August of the following year (specific date announced by DIAN).

Personal Income Tax Brackets (2026)

The IIT uses a progressive rate structure with 7 brackets applied to taxable income after deductions. Brackets are expressed in UVT:

• Up to 1,090 UVT (~COP 51.2M): 0% (basic exemption / renta exenta)
• 1,090 to 1,700 UVT: 19%
• 1,700 to 4,100 UVT: 28%
• 4,100 to 8,670 UVT: 33%
• 8,670 to 14,970 UVT: 35%
• 14,970 to 23,980 UVT: 37%
• Above 23,980 UVT: 39%

The first 1,090 UVT of taxable income is effectively exempt, serving as a basic allowance. Each bracket applies a marginal rate to earnings above the threshold. UVT values are adjusted annually for inflation by the DIAN.

Standard Deduction and Personal Allowances

Individuals may deduct certain expenses from their gross income before calculating taxable income:

• Standard deduction: The higher of (a) 25% of gross employment income (capped at 2,880 UVT) or (b) actual deductible expenses
• Dependent allowance: Up to 36 UVT per dependent (children under 18, disabled children of any age, spouse with no income)
• Minimum floor: Total deductions cannot reduce taxable income below the 1,090 UVT exemption threshold

Health, Education, and Other Deductible Contributions

Certain personal expenditures are deductible up to specified limits:

• Health contributions: Premiums paid to health insurance (EPS) and prepaid medical plans (medicina prepagada) are deductible, up to a limit
• Education expenses: School and university tuition for dependents, up to a cap per student
• Funeral expenses: Deductible up to 100 UVT per event
• Voluntary pension contributions: Contributions to voluntary pension funds (AFP) are deductible up to 3,800 UVT annually
• Charitable donations: Deductible up to 30% of taxable income
• Total cap: Aggregate deductions (excluding pension contributions) are capped at 2,880 UVT

Exempt Income (Rentas Exentas)

Certain types of income are exempt from IIT:

• The first 1,090 UVT of ordinary income (basic exemption)
• Severance payments (indemnizaciones laborales) up to legal limits
• Interest on savings accounts up to a certain threshold
• Pension payments (partially exempt, depending on amount)
• Primary residence capital gains exemption (up to a limit)

Filing Requirements

Individuals must file an annual IIT return if they meet any of the following thresholds:

• Gross income exceeding 4,900 UVT (~COP 230M)
• Total assets exceeding 4,500 UVT (excluding primary residence)
• Credit card spending exceeding 2,800 UVT
• Total purchases or consumption exceeding 2,800 UVT
• Bank account balances exceeding 4,500 UVT at year-end

The annual return deadline is typically mid-August of the following year. Salaried employees with tax fully withheld by their employer may not need to file if below thresholds.

FAQs

What is UVT and how is it used?

The UVT (Unidad de Valor Tributario) is an inflation-indexed unit that standardises tax brackets, deductions, and thresholds. It is adjusted annually by the DIAN. For 2026, 1 UVT ≈ COP 47,000. All tax calculations use UVT values.

Are foreigners taxed on worldwide income?

Yes, once an individual qualifies as a Colombian tax resident (183 days in Colombia in a 365-day period, or having their vital interests/spouse/dependents in Colombia), they are taxed on worldwide income. Non-residents are taxed only on Colombian-source income.

Can married couples file jointly?

No. Each individual must file separately in Colombia. However, dependents and deductions can be claimed by one spouse for the other if the other has no income.

What happens if I file late?

Late filing penalties range from 5% to 20% of the tax due, plus monthly interest (1.5% per month). Failure to file can result in DIAN enforcement actions.

Disclaimer

This guide provides general information about Colombian personal income tax (IIT) for the 2026 tax year. Tax laws, UVT values, and rates are subject to annual adjustment by the DIAN and may change. The information is based on published DIAN data and may not reflect individual circumstances. Always consult with a qualified Colombian tax advisor (contador) or the DIAN directly for advice specific to your situation. InvestmentKit does not provide tax advice.