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Taxes

Panama — Tax: Income Tax

Panama taxes only Panamanian-source income, with 0% to USD 11,000, 15% to USD 50,000 and 25% above, and exempts local savings interest.

VerifiedProfessional tax guide — not a government sourcePwC Worldwide Tax Summaries — Panama, Individual, Taxes on personal incomeLast reviewed: 2026-10-23

Key facts

  • Panama taxes citizens and residents on Panamanian-source income only, and non-residents likewise with payer withholding.
  • Income up to USD 11,000 is 0%, USD 11,000 to 50,000 is 15% on the excess, and above USD 50,000 is USD 5,850 plus 25%.
  • Interest on Panamanian government securities, savings accounts and time deposits with Panama-based banks is exempt.
  • There are no local income taxes.

Steps

  1. Understanding Tax Residency in Panama — To determine tax residency, individuals should consult the Panamanian tax authority's guidelines, which may require proof of income, employment, or other factors

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