PA · Americas · PAB
Panama
Tax rates
Income Tax
25%
Top rate, progressive scale
Source: PWC Worldwide Tax Summaries — Panama (Individual, Taxes on personal income) · as of 2026-01-18Corporate Tax
25%
Statutory rate
Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01VAT
7%
Standard rate
Source: PWC Worldwide Tax Summaries — Panama (Corporate, Other taxes) · as of 2026-01-18Capital Gains Tax
10%
Wealth Tax
0%
Not levied
No verified data yet for: Crypto Tax.
Estimate your income tax
Enter a gross annual salary to estimate 2026 national income tax for Panama 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.
The calculator needs JavaScript — every figure stays readable without it. The full bracket schedule is under Brackets & notes below, and the calculator page lists every country's schedule.
Brackets, notes & in practice
Income Tax
| Threshold | Rate |
|---|---|
| PAB 0 | 0% |
| PAB 11,000 | 15% |
| PAB 50,000 | 25% |
Panama taxes individuals on a territorial basis; taxable income above USD 50,000 is taxed at a top marginal rate of 25%, following brackets of 0% up to USD 11,000 and 15% up to USD 50,000.
VAT
In practice
- Filing
ITBMS filing becomes mandatory once a taxpayer's annual income exceeds B/. 36,000, though the threshold can vary depending on the taxpayer's economic activity.
Source: Dirección General de Ingresos (DGI) — Preguntas Frecuentes: ITBMS · as of 2026-07-27- Exemptions
Panama's ITBMS exempts exports (with recoverable input tax), medicines, foodstuffs, and certain baby products; medical services and transportation are also excluded from ITBMS but without a right to recover input tax.
Source: PWC Worldwide Tax Summaries — Panama (Corporate, Other taxes) · as of 2026-01-18
Capital Gains Tax
Panama taxes individual capital gains on the transfer of securities at 10%, with a 5% withholding tax collected on the gross transaction amount and creditable against the final assessed tax.
Wealth Tax
No net wealth/worth taxes levied in Panama.