NI · Americas · NIO

Nicaragua

Tax rates

0102030405060World avg (corporate) 22.6%Wealth Tax 0%VAT · Capital Gains — 15%Income · Corporate — 30%

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Estimate your income tax

Enter a gross annual salary to estimate 2026 national income tax for Nicaragua using verified brackets — total tax, effective and marginal rate, net income, and the per-band breakdown. National income tax only; social contributions and sub-national taxes are excluded unless the notes say otherwise. The full calculator covers every country with verified rates.

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Brackets, notes & in practice

Income Tax

Thresholds in NIO
ThresholdRate
NIO 00%
NIO 100,00015%
NIO 200,00020%
NIO 350,00025%
NIO 500,00030%
Source: PWC Worldwide Tax Summaries — Nicaragua (Individual, Taxes on personal income) · as of 2026-01-12

A minimum tax charge is added at each higher band alongside the marginal rate on the excess.

Nicaragua taxes resident individuals on a progressive scale from 0% up to 30% for taxable income above NIO 500,000. Non-residents instead face a flat 20% definitive withholding tax on Nicaraguan-source income.

VAT

In practice

Filing

VAT returns must be filed and paid monthly. Taxpayers classified as 'high taxpayers' (annual income over NIO 160 million) must additionally make an advance bi-weekly VAT payment within the first five business days after the 15th of each month, followed by a definitive return in the first five calendar days of the following month.

Source: PWC Worldwide Tax Summaries — Nicaragua (Corporate, Other taxes) · as of 2026-01-12
Exemptions

Nicaragua exempts certain items from VAT, including medicine, real estate transfers, sales of used goods, basic food products, credit instruments, tuition, and textbooks and educational supplies; exports of goods and services are zero-rated instead.

Source: PWC Worldwide Tax Summaries — Nicaragua (Corporate, Other taxes) · as of 2026-01-12

Capital Gains Tax

Nicaragua taxes capital gains derived by residents and nonresidents at a final withholding rate of 15%. Transfers of registrable property such as real estate and vehicles instead carry progressive withholding rates from 1% to 7% of the property's value.

Wealth Tax

No net wealth/worth taxes levied in Nicaragua.