How is Peruvian income tax calculated?

Labour income (rentas de trabajo — 4th and 5th category) is taxed on a progressive scale with marginal rates of 8%, 14%, 17%, 20% and 30%, and only the income within each band is taxed at that band’s rate. The bands are set in UIT (Unidad Impositiva Tributaria), and a fixed deduction of 7 UIT is subtracted from gross income before the scale applies, so the first 7 UIT are effectively exempt.

What is the UIT and why do the brackets change each year?

The UIT (Unidad Impositiva Tributaria) is the reference unit SUNAT uses to express the tax bands and the deduction. The band edges (5, 20, 35 and 45 UIT) and the rates never change, but the soles value of one UIT is set annually by Decreto Supremo — S/ 4,950 in 2023, S/ 5,150 in 2024, S/ 5,350 in 2025 and S/ 5,500 in 2026 — so the same UIT scale converts to higher soles thresholds each year.

How much income is tax-free in Peru?

The first 7 UIT of annual labour income is deducted before the scale applies, so it is effectively exempt — about S/ 37,450 in 2025 (7 × the 2025 UIT of S/ 5,350) and S/ 38,500 in 2026. A further deduction of up to 3 UIT is available for certain documented expenses (rent, professional services, hotels and restaurants), which this calculator does not include.

What is the difference between effective and marginal tax rate?

Your effective rate is total income tax divided by income (your average). Your marginal rate is the rate on your next sol. On S/ 100,000 in 2025 your marginal rate is 14% but your effective income-tax rate is only about 7%, because the 7 UIT deduction and the lower 8% band apply first.

Can I use this for previous years?

Yes. Use the year selector to view 2023, 2024, 2025 or 2026 rules — 2026 is the latest year, with the UIT at S/ 5,500. The 8/14/17/20/30% rate scale and the 7 UIT deduction structure are identical across all four years; only the UIT soles value (and so the thresholds) changes each year.

What is not included in this estimate?

This tool models the annual labour-income tax (rentas de trabajo) plus the ~13% employee pension only. It does not include the additional 3 UIT expense deduction, EsSalud (9%, an employer cost), capital income taxed at an effective 5%, business income, the non-domiciled flat 30% rate, or gratificaciones and CTS. Peru has no regional income tax on labour income. Consult SUNAT or a contador for exact figures.

Peru Income Tax Calculator 2023-2026

How to use Peru Income Tax Calculator

This Peru income tax calculator estimates your personal income tax on labour income (rentas de trabajo — renta de cuarta y quinta categoría) based on your annual income in soles and the tax year you select. Choose between 2023, 2024, 2025 and 2026. Peru sets its tax bands in UIT (Unidad Impositiva Tributaria), a reference unit fixed each year by Decreto Supremo, so the rates (8%, 14%, 17%, 20% and 30%) stay the same while the soles thresholds rise each year as the UIT is re-priced. A fixed deduction of 7 UIT is subtracted from your gross income before the scale applies, so the first 7 UIT are effectively exempt. The calculator applies the scale, then shows your effective rate, marginal rate and a full bracket breakdown, plus your take-home after the ~13% ONP or AFP pension contribution.

Select your tax year (2023, 2024, 2025, or 2026) from the dropdown.
Enter your annual income in soles (gross labour income before tax).
Keep the filing status as Individual — Peru assesses each taxpayer separately.
Click Calculate to see your income tax after the 7 UIT deduction, effective rate and marginal rate.
Review the bracket-by-bracket breakdown and your estimated take-home after the ~13% pension contribution.

Your data never leaves your device — 100% private processing.

How the Peruvian UIT scale and the 7 UIT deduction work

Peru taxes labour income (renta de cuarta y quinta categoría) on a single annual progressive scale. The five marginal rates are 8%, 14%, 17%, 20% and 30%, and only the income within each band is taxed at that band’s rate. The bands are written in UIT (Unidad Impositiva Tributaria), a reference unit SUNAT sets each year by Decreto Supremo, so the soles boundaries move every year while the rates and the UIT band edges (5/20/35/45 UIT) stay fixed. Crucially, before the scale applies a fixed deduction of 7 UIT is subtracted from your gross labour income — so the first 7 UIT are effectively exempt and the scale runs on the remainder. For 2025 the UIT is S/ 5,350, which makes the 7 UIT deduction S/ 37,450 and starts the 8% band on the income above it. The table below shows the 2025 thresholds on the taxable base (after the 7 UIT deduction).

2025 labour-income scale (UIT S/ 5,350, after the 7 UIT deduction of S/ 37,450)
Taxable base after 7 UIT (PEN)	UIT band	Marginal rate
0 – 26,750	0 – 5 UIT	8%
26,750 – 107,000	5 – 20 UIT	14%
107,000 – 187,250	20 – 35 UIT	17%
187,250 – 240,750	35 – 45 UIT	20%
Over 240,750	Over 45 UIT	30%

The UIT and why your soles thresholds change each year

The UIT (Unidad Impositiva Tributaria) is fixed annually by Decreto Supremo of the Ministerio de Economía y Finanzas, usually published in December. Because the tax bands and the 7 UIT deduction are defined in UIT rather than fixed soles, the same scale automatically tracks inflation: the UIT was S/ 4,950 in 2023, S/ 5,150 in 2024, S/ 5,350 in 2025 and S/ 5,500 in 2026, so the deduction and every threshold rose accordingly. This calculator stores each year’s UIT and rebuilds the soles brackets and the 7 UIT deduction for the year you pick, so switching the year selector re-prices the whole scale.

The extra 3 UIT deduction, ONP/AFP pension and your take-home

On top of the fixed 7 UIT, Peru lets you deduct up to a further 3 UIT for certain documented expenses — residential rent, independent professional services, and hotels and restaurants, among others — which this calculator does not model, so the tax shown is a slight upper bound for taxpayers who qualify. Separately, a dependent employee pays a pension contribution of about 13% of gross: either the public ONP (13%) or a private AFP (around 12.5–13%: the mandatory 10% fund contribution plus the AFP commission and the disability/survivor insurance premium). The calculator subtracts this in your take-home. Note that pension contributions do not reduce your income-tax base in Peru — the 7 UIT deduction is the relief — and that EsSalud health insurance (9%) is paid by the employer, not the employee.

Effective versus marginal tax rate

Your effective tax rate is your total income tax divided by total income — your true average. Your marginal rate is the rate on your next sol, set by the highest band you reach. On S/ 100,000 in 2025 your marginal rate is 14% but your effective income-tax rate is only about 7%, because the 7 UIT deduction and the 8% band apply first. Even at S/ 250,000, where the marginal rate is 20%, the effective rate is around 12.8%. Knowing the difference helps with decisions about bonuses, the gratificaciones and a pay rise.

Worked examples

Individual, S/ 60,000, 2025

Inputs: S/ 60,000 income

Result: ~S/ 1,804 income tax · 3.0% effective · 8% marginal · take-home ~S/ 50,396 after pension

Individual, S/ 100,000, 2025

Inputs: S/ 100,000 income

Result: ~S/ 7,152 income tax · 7.2% effective · 14% marginal

Individual, S/ 250,000, 2025

Inputs: S/ 250,000 income

Result: ~S/ 32,078 income tax · 12.8% effective · 20% marginal

Glossary

Impuesto a la Renta: Peru’s income tax; labour income (rentas de trabajo) is taxed on the annual 8–30% progressive scale.
Rentas de trabajo: Combined labour income — renta de cuarta (independent work) and quinta categoría (dependent employment) — taxed on one scale.
UIT: Unidad Impositiva Tributaria — the reference unit, fixed annually by Decreto Supremo, in which Peru’s tax bands and the 7 UIT deduction are defined.
7 UIT deduction: A fixed deduction of seven UIT subtracted from gross labour income before the scale applies, effectively exempting the first 7 UIT.
ONP: Oficina de Normalización Previsional — the public pension system; members contribute 13% of gross.
AFP: Administradora de Fondos de Pensiones — a private pension fund taking ~12.5–13% (10% fund + commission + insurance premium).
Effective tax rate: Total tax owed divided by total income — your true average tax rate.
Marginal tax rate: The tax rate applied to your next sol of income, set by the highest band you reach.

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Peru Income Tax Calculator

Tax Calculator

How to use Peru Income Tax Calculator

How the Peruvian UIT scale and the 7 UIT deduction work

The UIT and why your soles thresholds change each year

The extra 3 UIT deduction, ONP/AFP pension and your take-home

Effective versus marginal tax rate

Worked examples

Glossary

Related reading

Frequently Asked Questions

Why use Peru Income Tax Calculator?

Common use cases

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