Start calculating
Calculators Compare Tax Guides Tools About Start calculating
TAX YEAR 2026 · RATES CHECKED OCTOBER 2026

Paraguay Income Tax Calculator 2026

Enter a Paraguayan salary in guaraníes and this calculator applies the personal services income tax, the IRP-RSP: 8% on the first Gs 50,000,000, 9% up to Gs 150,000,000 and 10% above, plus the employee IPS contribution of 9%. Two warnings belong up front. The tax only becomes payable once gross income passes about Gs 80,000,000 a year, and in law the scale applies to income after deductions, so the calculator overstates the tax at most salary levels.

Calculate your Paraguay take-home pay

Income tax and employee contributions, 2026 rates.

Take-home pay / year—
—
Effective rate
—
Marginal rate
—
Monthly take-home
—
Tax freedom day
BreakdownAmount

Estimates for a single employee with standard allowances, calculated in your browser. Rates checked October 2026. Not tax advice.

The system

How income tax works in Paraguay

The IRP-RSP, set by Law 6380/2019, charges 8%, 9% and 10% on net income from personal services. Net is the operative word: the statutory base is what remains after deductible expenses, which include the 9% IPS contribution and documented personal and family expenses. This calculator runs the scale over gross salary, because expense records vary from one person to the next, and the gap can be large. Treat every tax figure here as the top of the range rather than a payslip prediction.

The entry threshold matters as much as the rates. Personal services income below roughly Gs 80,000,000 a year, about 36 minimum wages, sits outside the IRP altogether, so most employees owe no income tax at all. The calculator still applies the 8% band at those incomes, as it cannot tell whether your total income crosses the threshold, so its low-income tax figures should be read as zero in practice. The IPS contribution of 9% of gross pay, with no ceiling, is the one deduction that does apply from the first guaraní.

What this calculator leaves out

  • Personal income tax on personal services (IRP-RSP, Law 6380/2019): 8% / 9% / 10% on net income. The scale is applied here to gross salary as a simplification
  • Important: IRP only becomes payable once gross personal-services income exceeds PYG 80,000,000 in the year (about 36 minimum wages). Below that threshold no IRP is due, so figures at lower incomes overstate the tax
  • In law the 8/9/10% scale applies to net income after deductible expenses, which include the 9% IPS contribution and documented personal and family expenses; these deductions are not modelled, which further overstates the tax
  • Paraguay taxes Paraguayan-source income only. Capital income (interest, dividends, gains) is taxed separately at a flat 8% and is not modelled
Rates

Paraguay tax brackets (2026)

Taxable income bandRate
Up to Gs50,000,0008%
Gs50,000,000 – Gs150,000,0009%
Above Gs150,000,00010%

Bands apply to taxable income — what is left after any allowance.

Worked examples

Take-home pay at four salaries in Paraguay

Gross salaryIncome taxSocialTake-homeEffective rate
Gs144,536,500Gs12,508,285Gs13,008,285Gs119,019,93017.7%
Gs289,072,500Gs26,907,250Gs26,016,525Gs236,148,72518.3%
Gs578,145,500Gs55,814,550Gs52,033,095Gs470,297,85518.7%
Gs1,156,291,000Gs113,629,100Gs104,066,190Gs938,595,71018.8%

On Gs289,072,500 a year, take-home pay in Paraguay is Gs236,148,725 — about Gs19,679,060 a month — after Gs26,907,250 in income tax and Gs26,016,525 in social contributions. Salary levels are the local equivalents of US$25,000 / $50,000 / $100,000 / $200,000 at the ECB reference rate of 28 October 2026, rounded.

Payroll contributions

Social contributions in Paraguay

ContributionRateApplies fromApplies up to
Social security — IPS 9% First Gs0 No cap

Employee side only. Employer contributions, where a country charges them, do not come out of your pay and are not in these results.

Compare

Compare Paraguay taxes

Paraguay vs any country

Run Paraguay against any of the 111 countries on the homepage calculator, on one salary.

Open the comparison calculator →

More calculators in South America

FAQ

Paraguay tax — frequently asked questions

No. The IRP-RSP only starts once gross personal-services income exceeds about Gs 80,000,000 a year. Below that line there is no personal income tax, so the 8% figure the calculator displays at this level should be read as Gs 0. The IPS contribution of 9% still applies, which is Gs 5,400,000 on that salary.
On the calculator basis: 8% of the first Gs 50,000,000 is Gs 4,000,000, 9% of the next Gs 100,000,000 is Gs 9,000,000, and 10% of the remaining Gs 50,000,000 is Gs 5,000,000, a total of Gs 18,000,000. IPS takes another Gs 18,000,000, leaving take-home pay of about Gs 164,000,000. In a real return, deductible expenses starting with the IPS contribution would bring the tax down.
It is the employee social security contribution to the Instituto de Previsión Social, charged at 9% of gross salary with no ceiling. Unlike the income tax, it applies from the first guaraní of pay and at every salary level.
No. Interest, dividends and capital gains are taxed separately at a flat 8% and are not covered here. This calculator deals with salary and other income from personal services.
Sources & method. Rates and bands: Law 6380/2019, Art. 69 (IRP-RSP scale); PwC Tax Summaries — Paraguay (via secondary guides), checked 29 October 2026. The calculator models a single employee using standard allowances only; the full method, including what is left out and why, is on the Methodology page. Estimates only — not tax advice.