Income that is not subject to federal income tax (e.g., municipal bond interest, certain benefits)
Enter number of dependent children for tax calculations
Panama Salary Tax Calculator - Calculate Your Take-Home Pay
Our free Panama salary tax calculator helps you determine exactly how much you'll take home from your annual salary. This calculator accounts for all income tax (15-25%), CSS social security (10.525%), and other deductions to give you an accurate estimate of your net pay in US Dollars (USD).
Simply enter your annual salary in USD and filing status, and our Panama salary calculator will instantly show you your gross pay, all taxes, deductions, and your final net salary after all taxes. Our calculator uses the latest 2026 tax brackets and rates from the Panamanian tax authority.
Whether you're planning your budget, negotiating a salary, or just curious about your take-home pay, our Panama salary tax calculator provides accurate, up-to-date calculations based on the Progressive Income Tax System.
Understanding Panama Tax System
Panama uses a Progressive Income Tax System where tax rates increase with income. Panama is dollarized, using the US Dollar (USD) as its official currency alongside the Panamanian Balboa (PAB), which is pegged 1:1 to USD. This makes it easier for expatriates and international businesses.
2026 Tax Brackets:
- 0% - Up to $11,000 USD
- 15% - $11,000 to $50,000 USD
- 25% - Over $50,000 USD
Additional Information:
- Personal exemption: $11,000 USD per year
- CSS (Social Security): 10.525% of gross salary
- Panama uses US Dollars (dollarized economy)
Our Panama tax calculator automatically applies the correct tax rates and brackets based on your income level and filing status, ensuring accurate calculations for your specific situation.