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Income tax in Peru 2026
Work income — salaries, freelance fees and foreign income — runs through five bands set in tax units (UIT, PEN 5,500 in 2026): 8% up to 5 units and 30% above 45 units (PEN 247,500).
Before the scale starts, everyone deducts 7 units (PEN 38,500), freelancers knock off a flat 20% of fees, and up to 3 more units come off for restaurant, hotel, rent and professional-fee spending.
At a glance
- top rate
- 30% above 45 UIT (PEN 247,500)
- entry band
- 8% on the first 5 UIT (PEN 27,500) of taxable income
- tax year basis
- Calendar year
- filing deadline
- First 3 months of the following year, by tax-number digit
- residency basis
- Worldwide for domiciled individuals; foreigners domiciled after 183 days (effective the next 1 January)
- regime flag
- Small-business regimes: 10%/29.5% for medium and small entrepreneurs, 1.5% monthly special regime
Rates
Work and foreign income scale (2026)
| Taxable income (UIT) | Approximate PEN | Rate |
|---|---|---|
| 0 – 5 | 0 – 27,500 | 8% |
| 5 – 20 | 27,500 – 110,000 | 14% |
| 20 – 35 | 110,000 – 192,500 | 17% |
| 35 – 45 | 192,500 – 247,500 | 20% |
| Over 45 | Over 247,500 | 30% |
Marginal rates apply within each band.
Small-business income of individuals (2026)
| Regime | Rate | Conditions |
|---|---|---|
| Medium and small enterprise regime | 10% up to 15 UIT of net income, 29.5% above | Net income up to 1,700 UIT a year |
| Special monthly regime | 1.5% of net monthly income, final | Manufacturers, traders and service providers within limits |
| Simplified micro regime | Fixed small monthly quota | Covers income tax and sales tax; no invoices issued |
Thresholds & allowances
- Standard deduction7 UIT (PEN 38,500)
Off combined employment and freelance income
- Extra expense deductionUp to 3 UIT (PEN 16,500)
Listed items — rents paid, professional fees, hotels and restaurants, home-worker social security, certain medical costs; documentation required
- Freelancer flat deduction20% of gross fees, max 24 UIT
Independent-service income only; does not apply to directors' fees
- Financial transaction taxDeductible
The small levy on bank movements comes off the work-income base
Residency
Residency trigger
Peru uses 'domicile': Peruvians by habitual home, foreigners after 183 days in any 12 months — but a foreigner's domicile only switches on the following 1 January. Domiciled individuals owe tax on worldwide income.
Non-resident treatment
Non-domiciled individuals pay final withholding on Peruvian income only — 30% on salaries earned in Peru, an effective 24% on professional fees, 5% on dividends and on rents.
Notes
- Employees whose only income is salary do not file — monthly employer withholding is final; a return is worth filing to claim the 3-unit expense deduction.
- Freelancers face an 8% withholding or advance on fees, suspendable when projected annual income stays under PEN 48,125 (2026).
- Spouses file separately; community-property income can be split or attributed to one spouse.
- Foreign income joins the work-income scale, with a credit for foreign tax capped at the average Peruvian rate on that income.
- Business losses carry forward 4 years, or indefinitely against 50% of each year's profits.
FAQ
What is the top income tax rate in Peru?
30%, on work and foreign income above 45 tax units — PEN 247,500 in 2026. Capital income never enters the scale; it pays an effective 5%.
How much can I earn tax-free in Peru?
The first 7 tax units — PEN 38,500 in 2026 — are deductible from work income, with up to 3 more units for documented living expenses.
When do foreigners become tax residents of Peru?
After 183 days of presence in any 12-month period — but the worldwide-income treatment only starts the following 1 January.
Figures: tax year 2026, compiled from public sources. Not tax advice.