Take-home pay in Guatemala: how the 2026 payroll math works
If you work under a Guatemalan employment contract, two legal deductions stand between your gross salary and your bank account: the employee share of IGSS social security (4.83%) and the monthly income tax (ISR) withholding, which your employer calculates by projecting your yearly income. Guatemala also has a quirk worth knowing: the Q250 incentive bonus (bonificación incentivo, Decree 78-89), paid on top of the base salary. It is exempt from social security contributions but fully taxable for income tax.
This calculator follows the fiscal-year 2026 rules, including the one-off Q3,024 extraordinary allowance introduced by Decree 13-2026 in May 2026. Everything runs in your browser; your salary never leaves your device.
How to use it
- Enter your ordinary monthly salary in quetzales, without the incentive bonus.
- Adjust the incentive bonus if your employer pays more than the legal Q250 minimum.
- Read the breakdown: IGSS, monthly tax withholding and net pay.
- Expand the annual projection to see how the withholding is built.
The 2026 rules
| Item | Rule for 2026 |
|---|---|
| IGSS employee share | 4.83% of ordinary and overtime pay, no salary cap |
| Q250 incentive bonus | Exempt from IGSS, IRTRA and INTECAP; taxable for income tax |
| Standard allowance | Q48,000 per year, no receipts required (Tax Update Law, art. 72) |
| Extra 2026 allowance | Q3,024, fiscal year 2026 only (Decree 13-2026, art. 4) |
| IGSS contributions | Fully deductible from the tax base |
| Aguinaldo and Bono 14 | Each tax-free up to one month of ordinary salary; exempt from IGSS |
Income tax brackets for employees (Tax Update Law, art. 73):
| Annual taxable income | Tax |
|---|---|
| Up to Q300,000.00 | 5% |
| Over Q300,000.00 | Q15,000.00 plus 7% of the excess |
The monthly withholding is the projected annual tax divided by 12: annual gross equals monthly pay times 12, minus Q48,000, minus Q3,024, minus the projected annual IGSS.
Worked example
An ordinary salary of Q31,000 plus the Q250 bonus in 2026 — high enough to cross into the 7% bracket:
- Monthly IGSS: 31,000 × 4.83% = Q1,497.30 (the bonus does not contribute)
- Projected annual gross: 31,250 × 12 = Q375,000.00
- Projected annual IGSS: 1,497.30 × 12 = Q17,967.60
- Taxable income: 375,000 − 48,000 − 3,024 − 17,967.60 = Q306,008.40
- Annual tax: 15,000 plus 7% of 6,008.40 = Q15,420.59; monthly withholding: Q1,285.05
- Net pay: 31,250.00 − 1,497.30 − 1,285.05 = Q28,467.65
At more typical salaries the numbers are gentler: Q5,000 plus the bonus nets Q4,970.67 (IGSS Q241.50, tax Q37.83), and the 2026 minimum wage for non-agricultural work in the Guatemala department (Q4,002.28) pays no income tax at all thanks to Decree 13-2026, netting Q4,058.97.
Frequently asked questions
What is the Q250 incentive bonus?
A mandatory monthly bonus (Decree 78-89, as amended by Decree 37-2001) paid on top of the salary. It skips social security entirely — no IGSS, IRTRA or INTECAP — but it counts as taxable income for ISR, which is exactly how this calculator treats it.
Why does the calculator subtract Q3,024 on top of Q48,000?
Decree 13-2026 added an extraordinary allowance of Q3,024, with no receipts needed, valid only for fiscal year 2026. It took effect on May 23, 2026, so employers had to re-project withholdings for the remaining months of the year. A calculator that ignores it overstates the tax.
Will my payslip match this exactly?
Not necessarily. This tool shows the theoretical projection (annual tax divided by 12). If your employer withheld January through May 2026 under the old allowance and re-projected in June, your remaining monthly withholdings will differ, though the annual total matches. Personal deductions such as the VAT receipts schedule (up to Q12,000), donations and life insurance premiums apply at the annual settlement, not in the standard monthly withholding.
Are the aguinaldo and Bono 14 taxed?
Both mandatory annual bonuses (13th and 14th salaries) are exempt from IGSS, and exempt from income tax up to 100% of one month’s ordinary salary each. Only any excess above that ceiling — say, a double aguinaldo under a collective agreement — is taxed.
What changes in 2027?
From January 1, 2027, the Q48,000 allowance is replaced by a dynamic amount equal to 12 monthly non-agricultural minimum wages (including the incentive bonus), updated automatically every January. We will update this tool in January 2027.
This tool gives an informational estimate under the 2026 fiscal rules; it is not tax or legal advice. Your exact withholding is set by your employer under SAT rules. Sources: Decree 10-2012 (Tax Update Law), Decree 13-2026, IGSS. Review the figures every year.