El Salvador tax rates
The top rates a resident individual pays on each kind of income, computed by the Sovereign tax engine from its El Salvador tax profile.
Tier 2 — every figure has an accepted source; some rest on a PwC / Deloitte / KPMG / EY summary (marked †). Sources last checked 10 November 2026. Figures last changed 10 November 2026. Profile last reviewed 29 April 2026.
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| Salary | Long-term gains | Short-term gains | Dividends | Interest | Rent | Crypto gains | |
|---|---|---|---|---|---|---|---|
| El Salvador | 35.08% | 10%† | 30%† | 5% | 10% | 30% | 0% |
† This figure rests on a PwC, Deloitte tax summary, not on the statute itself. The summary is the only source on file for it.
Each figure is the tax on one more unit of a very large amount of that income, with every layer the engine models: surtaxes and uncapped social contributions included. It is the top marginal rate, not the average rate you pay on all your income.
What is the top income tax rate in El Salvador?
The top rate on a salary is 35.08%. It is the tax on each extra unit of a very high salary, with surtaxes and uncapped social contributions included. The income tax scale alone reaches 30% above USD 22,857.
How are capital gains taxed in El Salvador?
The top rate on a long-term capital gain is 10%. A gain on an asset held for 12 months or less is taxed at up to 30%.
How are dividends and interest taxed in El Salvador?
The top rate is 5% on dividends and 10% on interest. Rental income is taxed at up to 30%.
How is crypto taxed in El Salvador?
In our model El Salvador does not tax a private investor's gain on crypto assets.
Does El Salvador tax foreign income?
Generally no. El Salvador taxes income from sources in El Salvador. Income from abroad is generally outside the tax, with exceptions.
Does El Salvador have a wealth tax?
No. El Salvador has no recurring national tax on net wealth in our model. Property taxes and taxes on gifts or inheritances are separate.
Does El Salvador have an exit tax for individuals?
No. In our model El Salvador does not tax an individual's unrealised gains when the individual moves abroad.
What special tax regimes does El Salvador have?
Our profiles list 3 regimes: Bitcoin Law Tax Exemption (Ley Bitcoin, Art. 5); El Salvador Freedom programme (immigration only) — information only; not numerically modelled; Qualifying domestic bank deposit interest. Each has its own conditions.
When do you become tax resident in El Salvador?
The El Salvador day test (More than 200 consecutive days in a calendar year): 201 consecutive days in a calendar year; business seat and retained domicile are separate. Main business seat, previously acquired domicile and treaty facts need review.
Residence decides whether El Salvador taxes you on these rates. See the El Salvador day-count test and count your own days.
Sources
The El Salvador profile cites 8 sources for these rules, 8 of them from a government or a statute.
- Ley del Impuesto sobre la Renta, arts. 2(c), 37 · official, retrieved 2026-11-10
- Decreto Ejecutivo 10, 30 April 2025, payroll withholding preamble · official, retrieved 2026-11-10
- Ley del Impuesto sobre la Renta, art. 72 · official, retrieved 2026-11-10
- Ley del Impuesto sobre la Renta, art. 27 · official, retrieved 2026-11-10
- Ley del Impuesto sobre la Renta, art. 4(5) · official, retrieved 2026-11-10
- Ley de Reformas a la Ley Bitcoin (Jan 2025) · official, retrieved 2026-11-10
- Ley Bitcoin, article 5 as amended by Decreto Legislativo 199 (2025) · official, retrieved 2026-11-10
- Adopting El Salvador: Visionary Freedom Program · official, retrieved 2026-11-10
The model covers the general rules for a resident individual. It does not cover every deduction, credit, tax treaty or local tax, and rules change after the check date above. Did you find an error? Tell us, with the source.
Compare El Salvador with other countries
Top rates do not show what you would pay. Sovereign applies these rules to your own assets, income and debts, and compares the result across 165 countries. Put El Salvador side by side with other countries, see every country or try the live demo.
Other countries in Latin America: Uruguay, Venezuela, Argentina, Bolivia, Brazil, Belize.