🇵🇦 Panama Statutory Tax Guide
Panama Tax Brackets & Rates (2026)
Comprehensive statutory tax rates, withholding thresholds, social contributions, and deduction rules governed by Dirección General de Ingresos (DGI).
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📜 Statutory Authority & Legal Framework
In Panama, personal income taxation is administered by the Dirección General de Ingresos (DGI) under the authority of Código Fiscal de Panamá.
Panama progressive individual income tax (0%, 15%, 25%) with CSS social security (9.75%) and educational insurance (1.25%).
📊 2026 Progressive Marginal Tax Brackets
Currency: USD| Income Bracket ($) | Marginal Tax Rate | Bracket Type |
|---|---|---|
| Hasta $11,000 (0%) | 0.0% | Tax-Free Allowance |
| $11,000 – $50,000 (15%) | 15.0% | Tier 2 |
| Sobre $50,000 (25%) | 25.0% | Tier 3 |
🛡️ Mandatory Social Security & Pension Contributions
CSS + Seguro Educativo
Employee Share: 11.0%
Employer Share: 13.8%
Frequently Asked Questions: Panama Taxation
What are the income tax brackets in Panama? ↓
Panama operates a progressive tax system administered by Dirección General de Ingresos (DGI) under Código Fiscal de Panamá.
What social security or pension contributions apply in Panama? ↓
Mandatory contributions include: CSS + Seguro Educativo (11.0%).