SAR Notice 02-2026 sets annual net taxable income thresholds and progressive rates for 2026, with exemptions up to HNL 228,324.32 and continued medical expense deductions.
The Honduras Revenue Administration (SAR) has issued SAR Notice 02-2026, setting out the Progressive Income Tax (ISR) brackets and rates for individuals for the 2026 fiscal year.
Under the notice, annual net taxable income up to HNL 228,324.32 (monthly income up to L22,360.36) is exempt, while higher income is taxed at rates of 15%, 20%, and 25%.
The annual deduction of L40,000 for medical expenses remains in force but is not included in the published net income brackets.
2026 progressive individual income tax (ISR) table
| Tax Rate | Annual Net Taxable Income (From) | Annual Net Taxable Income (To) | Monthly Salary (From) | Monthly Salary (To) |
| Exempt | L0.01 | L228,324.32 | L0.01 | L22,360.36 |
| 15% | L228,324.33 | L348,154.10 | L22,360.37 | L32,346.18 |
| 20% | L348,154.11 | L809,660.75 | L32,346.19 | L70,805.06 |
| 25% | L809,660.76 | And above | L70,805.07 | And above |
The updated ISR table under SAR Notice 02-2026 will guide individual taxpayers in calculating their 2026 income tax obligations.
