Honduras · Taxes
Honduras taxes for US citizens
Source-checked15 sources, 11 officialHow we checkIn brief
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.
In short: what you'd pay in Honduras
Retiree on US income
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
Ballpark: $0 on short stays; not settled after that
Remote worker paid from the US
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
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%
Checked against the lawThe 2026 tax rates.
Not yet verifiedThe residence test and source rules, read in the 1969 tax regulation.
How Honduran tax 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
Sources (12)
Links
- Reglamento de la Ley del Impuesto sobre la Renta, Acuerdo 799/1969 (eRegulations copy)
- Ley de Impuesto sobre la Renta, texto consolidado (SEFIN, to 26 Jun 2018)
- Press reporting on the Ley de Justicia Tributaria bill
- IRS: 2026 inflation adjustments
- IRS: US citizens and resident aliens abroad
- IRS: foreign earned income exclusion
- IRS: foreign tax credit, how to figure the credit
- IRS: FICA tax rates (Topic 751)
- IRS: US income tax treaties A to Z
- SSA: international Social Security agreements
- SSA POMS GN 01701.005: totalization agreements in force
- IRS Publication 915: Social Security benefits
Nine worked examples, 2026
The retiree has $30,000 of Social Security, a $40,000 private pension and $20,000 of interest. Each person spends 90, 182 or 365 days of 2026 in Honduras.
| Who | Days in Honduras | Honduras income tax | US income tax, before credits |
|---|---|---|---|
| Remote employee, $60,000 | 90 | Not settled | $5,020 |
| Remote employee, $60,000 | 182 | $4,059 | $5,020 |
| Remote employee, $60,000 | 365 | $11,567 | $5,020 |
| Remote employee, $150,000 | 90 | Not settled | $24,734 |
| Remote employee, $150,000 | 182 | $15,266 | $24,734 |
| Remote employee, $150,000 | 365 | $34,067 | $24,734 |
| Retiree, $90,000 | 90 | $0 | $8,348 |
| Retiree, $90,000 | 182 | Not settled | $8,348 |
| Retiree, $90,000 | 365 | Not settled | $8,348 |
Don't add the two columns: credits and the foreign earned income exclusion can cut the US part.
Needs reviewPay at 90 days, and a resident retiree's US income.
Sources (16)
Legal basis and exact figures
- Residence: Reglamento ISR (Acuerdo 799/1969) art 15: more than three months in the civil year; 90 days (1 Jan-31 Mar) treated as non-resident, a boundary case (PwC lead says more than 90 days).
- Residents: work done in Honduras is Honduran-source (art 9). Allocation x 26.84, then the 2026 table (Acuerdo SAR-01-2026, Gaceta 37,051): exempt to L 228,324.32; 15% to 348,154.10; 20% to 809,660.75; 25% above. Results USD 4,058.96 / 11,567.09 (60k at 182 / 365 days), 15,265.72 / 34,067.09 (150k), before personal deductions; no Honduran withholding agent. The 182-day rows exclude US-worked pay on the territorial reading only.
- 90 days, Not settled: non-residents pay on gross Honduran-source income (art 10); SEFIN's consolidated Ley ISR (to 26 Jun 2018) gives 25% on salaries (art 5(3)): for scale only USD 3,698.63 (60k), 9,246.58 (150k). Payment route for someone paid only by a US employer is open.
- Retiree: $0 at 90 days (non-resident, not Honduran-source). At 182 and 365 days three readings conflict: territorial (PwC), Reglamento ISR art 7 (reaches foreign income of residents), and the Reglamento de Migración art 29 pensionado/rentista exemption (survival unchecked).
- Other: capital gains 10% (Ley ISR art 10). No US treaty (IRS A-Z, 03-Jan-2026) or totalisation agreement (POMS GN 01701.005, 17 Sep 2026). IHSS not researched. Ley de Justicia Tributaria pending since May 2023, failed in May 2025 per press.
- US side: US figures are federal income tax before the exclusion and credits; employee FICA is extra ($4,590 on $60,000; $11,475 on $150,000). No totals: local social security contributions aren't established.
Links
- Acuerdo SAR-01-2026, La Gaceta 37,051 (2026 progressive table)
- Reglamento de la Ley del Impuesto sobre la Renta, Acuerdo 799/1969 (eRegulations copy)
- Ley de Impuesto sobre la Renta, texto consolidado (SEFIN, to 26 Jun 2018)
- Reglamento de la Ley de Migración y Extranjería (2004, TSC copy)
- US Treasury Reporting Rates of Exchange: Honduras-Lempira
- Press reporting on the Ley de Justicia Tributaria bill
- PwC Worldwide Tax Summaries: Honduras individual
- IRS: 2026 inflation adjustments
- IRS: US citizens and resident aliens abroad
- IRS: foreign earned income exclusion
- IRS: foreign tax credit, how to figure the credit
- IRS: FICA tax rates (Topic 751)
- IRS: US income tax treaties A to Z
- SSA: international Social Security agreements
- SSA POMS GN 01701.005: totalization agreements in force
- IRS Publication 915: Social Security benefits
Other Honduras guides
Every rule with its legal source.
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