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Income tax in Colombia 2026
Everything is measured in tax value units (UVT — COP 52,374 in 2026): the first 1,090 units (≈ COP 57 million) are tax-free, and seven bands climb to 39% above 31,000 units (≈ COP 1.6 billion).
A quarter of employment income is exempt up to 790 units a year, but total exemptions and deductions in the general basket are capped at 40% of net income and 1,340 units.
At a glance
- top rate
- 39% above 31,000 UVT (≈ COP 1.62 billion)
- entry band
- 0% up to 1,090 UVT (≈ COP 57 million)
- tax year basis
- Calendar year
- filing deadline
- August-October of the following year, by tax-number digits
- residency basis
- Worldwide; resident at 183+ days in any 365-day window
- regime flag
- Simplified taxation regime (SIMPLE): 1.2-8.3% of turnover for small business
Rates
Income tax scale (2026) — general, pension and dividend income combined
| Taxable income (UVT) | Approximate COP | Marginal rate |
|---|---|---|
| 0 – 1,090 | 0 – 57 million | 0% |
| 1,090 – 1,700 | 57 – 89 million | 19% |
| 1,700 – 4,100 | 89 – 215 million | 28% |
| 4,100 – 8,670 | 215 – 454 million | 33% |
| 8,670 – 18,970 | 454 – 994 million | 35% |
| 18,970 – 31,000 | 994 million – 1.62 billion | 37% |
| Over 31,000 | Over 1.62 billion | 39% |
Marginal rates apply within each band.
Annual net worth tax (standing law, 2026)
| Net wealth (UVT) | Approximate COP | Marginal rate |
|---|---|---|
| 0 – 72,000 | 0 – 3.77 billion | 0% |
| 72,000 – 122,000 | 3.77 – 6.39 billion | 0.5% |
| 122,000 – 239,000 | 6.39 – 12.5 billion | 1% |
| Over 239,000 | Over 12.5 billion | 1.5% (this top rate runs to end-2026) |
Marginal rates apply within each band.
Thresholds & allowances
- Employment exemption25% of pay, max 790 UVT/year
Not available if you also deduct actual costs against the income
- General basket cap40% of net income, max 1,340 UVT/year
Combined ceiling on exempt income and deductions in the general schedule
- Dependants72 UVT per dependant (up to 4)
Sits outside the 40% cap; employees can add 10% of income (max 32 UVT/month) against withholding
- Home-loan interestUp to 1,200 UVT/year
Mortgage or housing-leasing interest; health insurance adds up to 16 UVT/month
- Purchases deduction1% of goods and services, max 240 UVT
For electronically invoiced purchases, outside the 40% cap
- Voluntary pension and housing savings30% of income, max 3,800 UVT/year
Long lock-ins apply — early withdrawal claws the benefit back
- Pension income exemption1,000 UVT per month
Also covers foreign pensions since 2023
Residency
Residency trigger
You are resident after 183 days in Colombia within any 365-day window. Colombian nationals can also be pulled in through family, income or asset ties at home, unless most of their income or assets sit in their new country of residence.
Non-resident treatment
Non-residents pay only on Colombian income — 35% when they must file a return, though most payments are settled by a 20% final withholding instead.
Notes
- The net worth tax stands at its permanent design — 0.5-1.5% above 72,000 tax value units, with the first 12,000 units of your home excluded; the emergency decree that cut the threshold to 40,000 units was voided by the Constitutional Court.
- Filing runs August to October by tax-number digits; spouses always file separately, and a separate foreign-assets return covers what residents own abroad each 1 January.
- Prepayments of 75% of the year's tax (less withholdings) are due for the next year — reduced to 25% and 50% for first- and second-time filers.
- The simplified taxation regime (SIMPLE) suits small entrepreneurs: 1.2-8.3% of gross receipts replaces income tax and the municipal turnover tax, for prior-year income up to 100,000 tax value units.
- Independent workers either deduct real costs (60% is presumed for employment-type income) or keep the 25% exemption — not both.
FAQ
What is the top income tax rate in Colombia?
39%, on taxable income above 31,000 tax value units — about COP 1.62 billion in 2026.
How much can I earn tax-free in Colombia?
The first 1,090 tax value units — roughly COP 57 million in 2026 — are taxed at 0%, before the 25% employment exemption and other deductions.
Does Colombia still have a wealth tax in 2026?
Yes — the permanent one: 0.5% to 1.5% each year on net wealth above 72,000 tax value units (≈ COP 3.77 billion). The emergency decree lowering the threshold was struck down in January 2026.
Figures: tax year 2026, compiled from public sources. Not tax advice.