Panama Salary Tax Calculator (2026)
For an annual gross salary of $100,000, an employee in Panama pays an effective tax rate of 29.4% and takes home roughly $70,650 per year (income tax, employee social contributions included).
2026 income tax brackets in Panama
| Annual income (PAB) | Rate |
|---|---|
| 0 PAB to 11,000 PAB | 0% |
| 11,000 PAB to 50,000 PAB | 15% |
| 50,000 PAB and above | 25% |
Tax system: territorial. Panama taxes only Panama-source income. Foreign-source income is fully exempt regardless of residence status. No wealth, inheritance, or estate taxes.
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