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Income tax in Chile 2026
The scale is set in annual tax units (UTA — converted here at the December 2025 unit of CLP 834,504 used for the 2026 filing season; the unit moves monthly): nothing on the first 13.5 units (≈ CLP 11.3 million at the Dec 2025 unit), then seven steps to 40% above 310 units (≈ CLP 259 million at the Dec 2025 unit).
Employment income is taxed monthly through employer withholding at the same rates — with one employer and no other income, there is nothing to file.
At a glance
- top rate
- 40% above 310 UTA (≈ CLP 259 million at the Dec 2025 unit)
- entry band
- 0% up to 13.5 UTA (≈ CLP 11.3 million at the Dec 2025 unit)
- tax year basis
- Calendar year
- filing deadline
- April; monthly payroll withholding is final for single-employer salaries
- residency basis
- Worldwide; resident at 183+ days in 12 months or by settled intention
- regime flag
- New foreign residents: Chilean-source-only taxation for 3 years (extendable)
Rates
Income tax scale (2026)
| Taxable income (UTA) | Approximate CLP | Rate |
|---|---|---|
| 0 – 13.5 | 0 – 11.3 million | 0% |
| 13.5 – 30 | 11.3 – 25 million | 4% |
| 30 – 50 | 25 – 41.7 million | 8% |
| 50 – 70 | 41.7 – 58.4 million | 13.5% |
| 70 – 90 | 58.4 – 75.1 million | 23% |
| 90 – 120 | 75.1 – 100 million | 30.4% |
| 120 – 310 | 100 – 259 million | 35% |
| Over 310 | Over 259 million | 40% |
Marginal rates apply within each band.
Thresholds & allowances
- Mortgage interestDeductible up to caps
For buying or building a home; the cap shrinks as income rises
- Voluntary pension savingsDeductible within limits
Both payroll and independent savings routes qualify
- Education credit4.4 UF per child
Children up to 25; parents' combined income must stay under 792 inflation-indexed units (UF)
- Small-saver exemptions20 UTM interest / 30 UTM fund gains
Interest and mutual-fund redemption gains under these monthly-tax-unit (UTM) totals escape the annual tax
- Freelancer notional expenses30% of gross fees
Instead of documenting actual costs
Residency
Residency trigger
You are resident after 183 days in Chile within any 12 months, or immediately on showing settled intention — a job, family home or children's school. Foreigners then enjoy 3 years of Chilean-source-only taxation before worldwide income kicks in; leaving Chile does not end domicile while your main business base stays there.
Non-resident treatment
Non-residents pay the 35% non-resident tax on gross Chilean income, with lower rates for specific service and royalty classes.
Notes
- Freelance fees suffer a creditable 15.25% withholding in 2026 (17% by 2028); digital-platform workers see 17% on their payslips.
- Anyone with income beyond one salary — a second job, dividends, gains — files the April return and credits the monthly withholdings.
- Married couples generally file separately, though jointly held property can force a joint return.
- Business profits of individuals carry corporate-style tax first, then personal tax with an imputation credit — see the dividend page.
- Estates of deceased persons can remain taxpayers in their own right for up to 3 years.
FAQ
What is the top income tax rate in Chile?
40%, on annual income above 310 annual tax units — roughly CLP 259 million in 2026.
Do new residents of Chile pay tax on foreign income?
Not at first — foreigners establishing residence pay only on Chilean-source income for 3 years, extendable in qualified circumstances.
Do employees have to file a tax return in Chile?
Not with a single employer and no other income — the monthly withholding at the 0-40% rates is final; otherwise the April return reconciles everything.
Figures: tax year 2026, compiled from public sources. Not tax advice.