🇵🇾 Paraguay Statutory Tax Guide
Paraguay Tax Brackets & Rates (2026)
Comprehensive statutory tax rates, withholding thresholds, social contributions, and deduction rules governed by Dirección Nacional de Ingresos Tributarios (DNIT).
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📜 Statutory Authority & Legal Framework
In Paraguay, personal income taxation is administered by the Dirección Nacional de Ingresos Tributarios (DNIT) under the authority of Ley 6380/19 de Modernización y Simplificación Tributaria (IRP).
Paraguay progressive IRP (8%, 9%, 10%) on net income after 9% IPS contribution.
📊 2026 Progressive Marginal Tax Brackets
Currency: PYG| Income Bracket (₲) | Marginal Tax Rate | Bracket Type |
|---|---|---|
| 8% | 8.0% | Tier 1 |
| 9% | 9.0% | Tier 2 |
| 10% | 10.0% | Tier 3 |
🛡️ Mandatory Social Security & Pension Contributions
IPS Instituto de Previsión Social
Employee Share: 9.0%
Employer Share: 16.5%
Frequently Asked Questions: Paraguay Taxation
What are the income tax brackets in Paraguay? ↓
Paraguay operates a progressive tax system administered by Dirección Nacional de Ingresos Tributarios (DNIT) under Ley 6380/19 de Modernización y Simplificación Tributaria (IRP).
What social security or pension contributions apply in Paraguay? ↓
Mandatory contributions include: IPS Instituto de Previsión Social (9.0%).