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

The BPC (Base de Prestaciones y Contribuciones) is the reference unit, re-priced annually by the government, in which Uruguay’s tax bands are defined. The band edges (84, 120, 180, 360, 600, 900 and 1380 BPC) and the rates never change, but the peso value of one BPC rose from UYU 5,660 in 2023 to 6,045 in 2024 and 6,576 in 2025, so the same BPC scale converts to higher peso thresholds each year.

How much income is tax-free in Uruguay?

Annual labour income up to 84 BPC is exempt — about UYU 552,384 in 2025 (84 × the 2025 BPC of UYU 6,576). That exemption is the 0% first bracket, so you only start paying IRPF on income above roughly that level, and it rises each year with the BPC.

What are the IRPF deductions and the deduction credit?

Uruguay does not subtract most deductions from the tax base directly. Instead, allowed deductions (your BPS contributions and a notional amount per dependent under-age child) generate a tax credit computed at 14% of the deductions if your income is below 15 BPC a month, or 8% above that. This calculator applies the scale to gross income and documents the credit rather than modelling it, so it slightly overstates tax.

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. The 0/10/15/24/25/27/31/36% rate scale is identical across all four years; only the BPC peso value (and so the peso thresholds) changes each year. The 2026 figures use an estimated BPC pending the official announcement.

What is not included in this estimate?

This tool models the annual IRPF Categoría II on labour income plus the ~18.1% employee BPS contribution only. It applies tax to gross income rather than modelling the 14%/8% deduction credit, and it does not include the family-unit (núcleo familiar) assessment, capital income (IRPF Categoría I, a flat 12%), IRNR for non-residents, or net wealth tax. Uruguay has no departmental income tax. Consult the DGI or a contador for exact figures.

Uruguay Income Tax Calculator 2023-2026

How to use Uruguay Income Tax Calculator

This Uruguay income tax calculator estimates your personal income tax on labour income — the IRPF (Impuesto a la Renta de las Personas Físicas) Categoría II, rentas del trabajo — based on your annual income in pesos and the tax year you select. Choose between 2023, 2024, 2025 and 2026. Uruguay sets its brackets in BPC (Base de Prestaciones y Contribuciones), a unit re-priced each year, so the rates (0%, 10%, 15%, 24%, 25%, 27%, 31% and 36%) stay fixed while the peso thresholds rise each year as the BPC is updated. The calculator applies the scale, then shows your effective rate, marginal rate and a full bracket breakdown, plus your take-home after the ~18.1% BPS retirement, FONASA health and FRL contributions.

Select your income year (2023, 2024, 2025, or 2026) from the dropdown.
Enter your annual income in Uruguayan pesos (gross labour income before tax).
Keep the filing status as Individual — the optional family-unit assessment is not modelled here.
Click Calculate to see your IRPF, effective rate and marginal rate.
Review the bracket-by-bracket breakdown and your estimated take-home after BPS contributions.

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

How the Uruguayan IRPF Categoría II scale works

Uruguay taxes labour income (rentas del trabajo) with IRPF Categoría II, a progressive tax withheld monthly and reconciled at year-end. The eight marginal rates are 0%, 10%, 15%, 24%, 25%, 27%, 31% and 36%, and only the income within each band is taxed at that band’s rate. The thresholds are written in BPC (Base de Prestaciones y Contribuciones), a unit the government re-prices once a year, so the peso boundaries move every year while the rates and the BPC band edges (84/120/180/360/600/900/1380 BPC) stay fixed. For 2025 the BPC is UYU 6,576, which turns the 84-BPC exempt band into UYU 552,384 taxed at 0%. The table below shows the 2025 peso thresholds.

2025 IRPF Categoría II scale (BPC UYU 6,576)
Annual income (UYU)	BPC band	Marginal rate
0 – 552,384	0 – 84 BPC	0% (exempt)
552,384 – 789,120	84 – 120 BPC	10%
789,120 – 1,183,680	120 – 180 BPC	15%
1,183,680 – 2,367,360	180 – 360 BPC	24%
2,367,360 – 3,945,600	360 – 600 BPC	25%
3,945,600 – 5,918,400	600 – 900 BPC	27%
5,918,400 – 9,074,880	900 – 1380 BPC	31%
Over 9,074,880	Over 1380 BPC	36%

The BPC and why your peso thresholds change each year

The BPC (Base de Prestaciones y Contribuciones) is a national reference unit re-priced once a year, usually with effect from 1 January. Because the IRPF brackets are defined in BPC rather than fixed pesos, the same scale automatically tracks inflation: the BPC was UYU 5,660 in 2023, UYU 6,045 in 2024 and UYU 6,576 in 2025, so the exempt band and every threshold rose accordingly. This calculator stores each year’s peso thresholds, so switching the year selector re-prices the whole scale. The 2026 figures use an estimated BPC pending the official announcement, and will be updated once confirmed.

Deductions, the 14%/8% credit, BPS and your take-home pay

Uruguay handles deductions differently from most countries. Rather than subtracting them from the tax base, allowed deductions — chiefly your BPS personal contributions and a notional amount per dependent under-age child — generate a tax credit calculated at 14% of the deductions if your income is below 15 BPC a month, or 8% above that threshold. This calculator applies the scale to gross income and documents the credit rather than computing it, so the tax shown is a slight upper bound. Separately, a Uruguayan employee pays BPS contributions of about 18.1%–23.1% of gross: retirement (jubilación) 15%, FONASA health 3–8% depending on income and dependants, and the Labour Restructuring Fund (FRL) 0.1%. The calculator subtracts roughly 18.1% in your take-home, with the retirement portion capped at the BPS ceiling.

Effective versus marginal tax rate

Your effective tax rate is your total IRPF divided by total income — your true average. Your marginal rate is the rate on your next peso, set by the highest band you reach. On UYU 2,000,000 in 2025 your marginal rate is 24% but your effective IRPF rate is only about 13.9%, because the 84 BPC exempt band and the lower 10% and 15% bands apply first. Even at UYU 5,000,000, where the marginal rate is 27%, the effective rate is around 20.9%. Knowing the difference helps with decisions about bonuses, the aguinaldo and a pay rise.

Worked examples

Individual, UYU 1,000,000, 2025

Inputs: UYU 1,000,000 income

Result: ~UYU 55,306 income tax · 5.5% effective · 15% marginal · take-home ~UYU 763,694 after BPS

Individual, UYU 2,000,000, 2025

Inputs: UYU 2,000,000 income

Result: ~UYU 278,774 income tax · 13.9% effective · 24% marginal

Individual, UYU 5,000,000, 2025

Inputs: UYU 5,000,000 income

Result: ~UYU 1,046,189 income tax · 20.9% effective · 27% marginal

Glossary

IRPF: Impuesto a la Renta de las Personas Físicas — Uruguay’s personal income tax; Categoría II covers labour income.
Categoría II (rentas del trabajo): The IRPF category for labour income (wages, salaries), taxed on the annual 0–36% progressive scale.
BPC: Base de Prestaciones y Contribuciones — the reference unit, re-priced annually, in which Uruguay’s tax bands are defined.
Deduction credit (14%/8%): Allowed deductions generate a credit at 14% of the deductions for income below 15 BPC/month, or 8% above, rather than reducing the tax base.
BPS: Banco de Previsión Social — the social security institution collecting retirement, FONASA health and FRL contributions.
FONASA: Fondo Nacional de Salud — the national health fund; employees contribute 3–8% of gross depending on income and dependants.
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 peso of income, set by the highest band you reach.

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Uruguay Income Tax Calculator

Tax Calculator

How to use Uruguay Income Tax Calculator

How the Uruguayan IRPF Categoría II scale works

The BPC and why your peso thresholds change each year

Deductions, the 14%/8% credit, BPS and your take-home pay

Effective versus marginal tax rate

Worked examples

Glossary

Related reading

Frequently Asked Questions

Why use Uruguay Income Tax Calculator?

Common use cases

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