Peru Personal Income Tax Guide (Impuesto a la Renta)

Peru's Impuesto a la Renta (IIT) applies progressive rates from 8% to 30% across five brackets, anchored to the UIT (Unidad Impositiva Tributaria, PEN 5,350 for 2026). A standard deduction of 7 UIT (PEN 37,450) is available for employment income. Health and education expenses are deductible up to limits. Filing is annual through SUNAT's online platform. All amounts in PEN.

Peru's Impuesto a la Renta (Income Tax) is administered by SUNAT (Superintendencia Nacional de Aduanas y de Administración Tributaria). The system taxes residents on worldwide income on an annual basis. For related guidance, see our Corporate Tax Guide →, IGV Guide →, and Investment Income Guide →.

IIT Tax Brackets 2026 (UIT-Based)

The UIT (Unidad Impositiva Tributaria) for 2026 is PEN 5,350. Brackets are expressed in UIT and apply to net taxable income after deductions:

8% — on net taxable income up to 5 UIT (PEN 26,750)
14% — on net taxable income from 5 UIT to 20 UIT (PEN 26,751 to PEN 107,000)
17% — on net taxable income from 20 UIT to 35 UIT (PEN 107,001 to PEN 187,250)
20% — on net taxable income from 35 UIT to 45 UIT (PEN 187,251 to PEN 240,750)
30% — on net taxable income exceeding 45 UIT (above PEN 240,750)

The progressive brackets apply to employment income (Fourth and Fifth Category), business income (First Category), and capital income. Rental income and certain investment incomes follow the same scale.

Standard Deduction (7 UIT)

Employment deduction: Employees (Fifth Category) and independent professionals (Fourth Category) may deduct 7 UIT (PEN 37,450) from their gross employment income. This replaces all actual expense deductions for salaried workers.
Fourth Category professionals: Independent professionals may deduct 20% of gross income (capped at 3 UIT / PEN 16,050) instead of the 7 UIT deduction, whichever is more beneficial.
Taxpayers with both employment and professional income must choose one deduction method consistently.

Personal Reliefs and Deductions

Health insurance premiums: Premiums paid to private health insurers (EPS, seguros privados) are deductible up to 3 UIT (PEN 16,050) annually per person covered.
Education expenses: Tuition, school supplies, and education-related costs for the taxpayer, spouse, children, and dependents are deductible up to 3 UIT (PEN 16,050) per family.
Mortgage interest: Interest on mortgage loans for the taxpayer's primary residence is deductible up to 3 UIT (PEN 16,050) annually.
Medical expenses: Unreimbursed medical and dental expenses for the taxpayer and dependents are deductible up to 3 UIT (PEN 16,050).
Donations: Donations to approved non-profit entities are deductible, capped at 10% of net income.

Annual Reconciliation (Declaración Anual)

Filing deadline: The annual tax return (Declaración Anual) must be filed by 31 March of the following year for the 2026 tax year (due 31 March 2027).
Online filing: Returns are submitted through SUNAT Virtual (sunat.gob.pe) using Form 709 (for individuals). Pre-filled information from employers and financial institutions is available.
Withholding: Employers withhold IIT monthly from salaries using the progressive rate table. Professionals receive withholding certificates (Certificado de Retenciones) from clients.
Underpayment: If total withholding is less than the annual tax due, the taxpayer must pay the balance by the filing deadline. Overpayments are refunded by SUNAT.

Residency and Worldwide Income

Resident: Individuals present in Peru for 183 days or more in a calendar year are considered residents and taxed on worldwide income.
Non-residents: Taxed only on Peruvian-source income, generally at a flat 30% withholding rate without deductions.
Tax treaties: Peru has tax treaties with several countries (Andean Community, Chile, Canada, Mexico, South Korea, Switzerland, among others) that may limit withholding rates and provide foreign tax credit relief.