Panama ISR table: brackets and how to calculate
Panama's individual income tax (ISR) is calculated on annual taxable income with a three-bracket table. Here's what you need to know.
The ISR brackets
| Annual taxable income | Tax |
|---|---|
| Up to $11,000 | 0% |
| $11,000 to $50,000 | 15% on the excess over $11,000 |
| Over $50,000 | $5,850 + 25% on the excess over $50,000 |
Example
For an annual taxable income of $24,000: ISR is 15% × ($24,000 − $11,000) = $1,950 per year (about $162.50 per month).
What is taxable income?
It's salary minus statutory deductions (CSS and education tax). The employer withholds ISR monthly through payroll.
Calculate your ISR
Use the ISR calculator to see annual tax, monthly withholding and the effective rate.
Source: Article 700 of the Tax Code (Ley 8/2010). Reference only; confirm with your accountant.