Honduras · Tax on foreign income
Does Honduras tax foreign income? A guide for Americans
Short answer
Pay for work done in Honduras is taxed, on a 0–25% scale for residents. Whether a resident retiree pays tax on US income isn't settled; pension residents have an exemption.
What you'd pay, by situation
| Retiree on US income $0 on short stays; not settled after that | Under 3 months a year, US income isn't taxed. Once you're resident it isn't settled, though pension residents have an exemption Needs review |
|---|---|
| Remote worker paid from the US About $4,100 on half a year of a $60,000 salary; about $11,600 all year | Pay for work done in Honduras is taxed. After more than 3 months a year you pay 0–25%. |
| Working for a local employer Residents 0–25%; non-residents 25% | Residents pay 0–25%, with about $8,500 a year tax-free. Non-residents pay 25% of gross pay Not yet verified |
Checked against the law The 2026 tax rates.
Not yet verified The residence test and source rules, read in the 1969 tax regulation.
How it works
- Tax residence: more than 3 months in a calendar year.
- What's taxed: pay for work done in Honduras, wherever you're paid. Foreign income of residents isn't settled.
- Capital gains: a flat 10%, resident or not.
- No US tax treaty or Social Security agreement: Honduran tax paid may be credited on your US return; see a tax adviser.
- Pending change: a tax reform bill could cut exemptions; it hasn't passed Pending change
Taxes in Honduras, with worked examples → The full Honduras guide →
Questions people ask
Does Honduras tax US Social Security and pensions?
Under 3 months a year, US income isn't taxed. Once you're resident it isn't settled, though pension residents have an exemption (Needs review)
Remote worker paid from the US in Honduras: what would I pay?
Pay for work done in Honduras is taxed. After more than 3 months a year you pay 0–25%. Ballpark: About $4,100 on half a year of a $60,000 salary; about $11,600 all year.
Working for a local employer in Honduras: what would I pay?
Residents pay 0–25%, with about $8,500 a year tax-free. Non-residents pay 25% of gross pay (Not yet verified) Ballpark: Residents 0–25%; non-residents 25%.