Free calculator
Panama income tax (ISR) calculator
Compute income tax with the current table: 0% up to $11,000, 15% from $11,000 to $50,000, and 25% above.
Result
Annual taxable income—
Bracket—
Annual ISR—
Monthly ISR (withholding)—
Effective rate—
Legal basis: Art. 700 of the Tax Code (Ley 8/2010). Brackets: 0% up to $11,000; 15% on the excess up to $50,000; $5,850 + 25% above $50,000. Reference only; confirm with your accountant.
Frequently asked questions
How much salary is exempt from ISR in Panama?
ISR exempts the first $11,000 of annual taxable income, roughly $916 per month. Below that amount your ISR withholding is zero, though you still pay CSS and education tax.
Why does the calculator annualize my monthly salary?
Panama's ISR is computed on annual taxable income, so your monthly salary is multiplied by 12 to find the correct bracket, then the tax is divided by 12 for the monthly withholding. That's why a salary right at a bracket edge can shift rates.
Is ISR calculated before or after CSS is deducted?
ISR is computed on taxable income: your salary after subtracting CSS (9.75%) and education tax (1.25%). That's why those deductions lower the base the progressive table applies to.
Does nominaHQ withhold ISR automatically in payroll?
Yes. nominaHQ applies the current table and withholds ISR every month on each payroll, spreading the annual tax across pay periods. You can try it free for 30 days with up to 5 employees and no card.