The Revenue Administration Service (SAR) reported on Thursday, January 8, the update to the Progressive Income Tax (ISR) Table that will apply during 2026.
According to official SAR data, this update will benefit more than 200,000 taxpayers and represents an estimated fiscal cost of approximately L 1.5 billion.
As established by current legislation, the 2026 Progressive Tax Table was calculated based on the interannual inflation rate of 4.98%, recorded at the close of 2025 and published by the Central Bank of Honduras (BCH).
The new ISR scale must be applied as of the first salary paid in January 2026, in both the private and public sectors. However, the exemption for teaching personnel remains in force, as they are not subject to this tax.
Moreover, the Honduran Council of Private Enterprise (COHEP) reported that workers with monthly income of up to L 22,360 will be exempt from Income Tax during the 2026 fiscal period.
COHEP explained that this update complies with Legislative Decree No. 20-2016, which amended Article 22 of the Income Tax Law and established the automatic annual adjustment of the progressive tax scale for individuals as of 2017.
In light of this update, companies are advised to timely review their payroll and withholding systems to ensure the correct application of the new progressive ISR table from the beginning of the year.
Please contact us if you have further questions or require assistance regarding this or other labor-related matters.