Panama Income Tax Calculator 2026
PAYE 0-25%, foreign income exempt — territorial tax system.
Panama Personal Income Tax
Panama operates a territorial tax system: only Panama-source income is taxed. Foreign-source income is exempt. Progressive PAYE rates: 0% up to PAB 11,000, 15% from PAB 11,001–50,000, and 25% above PAB 50,000. The tax year is the calendar year (January–December).
2026 Rates: 0% ≤ PAB 11,000, 15% PAB 11,001–50,000, 25% > PAB 50,000.
Panama Income Tax Calculator 2026 — PAYE 0-25%
Calculate Panama personal income tax (PAYE). Progressive rates 0-25%, territorial system, foreign income exempt.
Panama uses a territorial tax system. Only Panama-source income is taxed. Foreign-source income is exempt.
Annual IncomeUSD 50,000.00
PAYE Tax (0–25%)USD 5,850.0011.7% effective
Net Income After TaxUSD 44,150.00