How is income tax calculated in Peru?
For 2026 one tax unit (UIT) is PEN 5,500. Employees first deduct seven tax units (PEN 38,500); the rest is taxed at 8% up to 5 UIT (PEN 27,500), 14% up to 20 UIT, 17% up to 35 UIT, 20% up to 45 UIT and 30% above.
Employers withhold pension contributions of 13% for the National Pension System, or about 12.5% for the Private Pension System. Health contributions (9%) are paid by the employer.
What is the income tax rate in Peru?
| Taxable income | Rate |
|---|---|
| PEN 0 – PEN 27,500 | 8% |
| PEN 27,500 – PEN 110,000 | 14% |
| PEN 110,000 – PEN 192,500 | 17% |
| PEN 192,500 – PEN 247,500 | 20% |
| Over PEN 247,500 | 30% |
What mandatory salary deductions apply?
- Pension (National Pension System, employee): 13% of pay.
Gross salary and take-home salary
Gross salary is what your contract says before anything is taken off. Take-home salary is what reaches your bank account after income tax and the compulsory employee contributions. Employer contributions are paid on top of your salary and are not taken from it.
Example: PEN 10,000.00 a month
An employee earning 10,000 a month, about US$3,000.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | PEN 10,000.00 | PEN 120,000.00 |
| Income tax | PEN 813.33 | PEN 9,760.00 |
| Compulsory contributions | PEN 1,300.00 | PEN 15,600.00 |
| Take-home pay | PEN 7,886.67 | PEN 94,640.00 |
Effective income tax rate 8.1%; all deductions 21.1%.
Frequently asked questions
What is a UIT?
A tax unit used to set the brackets; for 2026 it is PEN 5,500.
How are non-domiciled employees taxed?
At a flat 30% on gross Peruvian-source income, with no deductions or credits.
Can I deduct rent or professional services?
Yes, up to three additional tax units for qualifying expenses such as rent and professional services, if requirements are met.
Official sources
- PwC Worldwide Tax Summaries (reviewed 13 July 2026): Peru: Individual - Taxes on personal income. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 13 July 2026): Peru: Individual - Other taxes. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 13 July 2026): Peru: Individual - Deductions. Read 5 November 2026.
Last reviewed 5 November 2026. An estimate for planning, not tax advice; your employer’s payroll and the tax authority decide what is actually withheld.
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