Income tax in Uruguay 2026

Bands are written in the contributions-and-benefits base (BPC, UYU 6,864 at end-2025): the first 84 units a year — roughly UYU 577,000 — are tax-free, and 36% starts above 1,380 units (about UYU 9.5 million).

Only Uruguayan-source work income is caught: salaries for work performed abroad sit outside the tax entirely.

At a glance

top rate: 36% above 1,380 BPC a year (≈ UYU 9.5 million)
entry band: 0% up to 84 BPC (≈ UYU 577,000)
tax year basis: Calendar year
filing deadline: June-August; monthly employer withholding is usually final
residency basis: Territorial; resident at 183+ days or centre of vital/economic interests
regime flag: Couples may elect joint taxation with its own band tables

Rates

Work income scale (individual filers)

Annual income (BPC)	Approximate UYU	Rate
0 – 84	0 – 577,000	0%
84 – 120	577,000 – 824,000	10%
120 – 180	824,000 – 1.24 million	15%
180 – 360	1.24 – 2.47 million	24%
360 – 600	2.47 – 4.12 million	25%
600 – 900	4.12 – 6.18 million	27%
900 – 1,380	6.18 – 9.47 million	31%
Over 1,380	Over 9.47 million	36%

Marginal rates apply within each band.

Pension assistance tax (replaces income tax on pensions)

Base	Rate
Gross pensions, progressive bands	0% – 30%

Thresholds & allowances

Dependent children20 BPC per minor child
40 BPC per disabled dependant; doubled from 2023
Social security contributionsFully deductible
Plus qualifying mortgage instalments on the taxpayer's dwelling
How deductions convert14% credit rate (8% above 180 BPC of income)
Deductions reduce tax at a flat rate rather than at your marginal band
Tenant rent credit8% of rent paid
Written contract of at least 1 year with an identified landlord

Residency

Residency trigger

You are resident after 183 days in the calendar year (occasional absences count), or when your family or the bulk of your income and assets sit in Uruguay — large local investments create a presumption. Foreigners living off pure capital income can stay under the non-resident tax instead.

Non-resident treatment

Non-residents pay a flat 12% on Uruguayan-source income — work, services and capital alike — withheld at source, with dividends at 7%.

Notes

Employer withholding usually settles the year; a return filed June-August (payable in 5 instalments to December) is needed for multiple jobs or to claim deductions.
Holiday pay and the annual complementary salary are taxed at your top marginal rate as a flat charge, not through the bands.
Independent professionals deduct a notional 30% of gross fees as expenses and then use the same scale.
Pensions escape income tax but pay the separate 0-30% assistance tax on gross amounts.
Couples may opt for joint taxation of work income (except in the year the union starts or ends), with dedicated band tables.

FAQ

What is the top income tax rate in Uruguay?

36%, on work income above 1,380 benefit-base units a year — roughly UYU 9.5 million; capital income pays a flat 12% instead.

Does Uruguay tax foreign income?

For work income, mostly no — foreign salaries stay outside. But from 2026 foreign capital income and capital gains pay 12% under the budget law (Law 20.446), with exceptions (royalties, trademarks, movable leasing, derivatives), a foreign-tax credit, and shelter under the new-resident holiday.

How much can I earn tax-free in Uruguay?

The first 84 benefit-base units a year — about UYU 577,000 at the end-2025 unit value — are taxed at 0%.

Figures: tax year 2026, compiled from public sources. Not tax advice.

See income tax in other countries

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