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Honduras vs Brazil
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇭🇳 Honduras
vs
🇧🇷 Brazil
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–25%
25% top; fiscal reform priority
No change
0–27.5%
Zero-rate up to R$5,000/mo fully effective
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
15%
15% ISV maintained
No change
~27.5% combined
IBS+CBS advancing; ICMS/ISS phasing out
-0.5pp vs 2025

Corporate Tax Rate

Corporate Tax Rate
25%
25%; Pillar Two considerations
No change
34%
34% maintained; reform discussions ongoing
No change

Capital Gains Tax

Capital Gains Tax
10%
10% maintained
No change
15–22.5%
Offshore income now fully captured
No change

Social Security & Payroll

Social Security / Payroll
~18%
IHSS expansion efforts; formal sector low
No change
~36%
Payroll simplification proposals ongoing
No change
State, Regional & Local Taxes

🇭🇳 HondurasMunicipal Taxes

Honduras's 298 municipalities levy the Impuesto Personal sobre la Renta (IPSVR), property tax (on buildings and land), commercial activity tax (impuesto de industria, comercio y servicios at 0.3%–0.5% of gross income), and vehicle tax. Tegucigalpa and San Pedro Sula have the highest municipal charges. The Servicio de Administración de Rentas (SAR) administers national taxes. Honduras has one of Latin America's highest inequality indices; tax evasion is widespread, particularly in informal sectors.

🇧🇷 BrazilState & Municipal Taxes

Brazil has one of the world's most complex tax systems. States levy ICMS at 7%–18% varying by state. Municipalities levy ISS (services tax) at 2%–5% and IPTU (urban property tax). A sweeping tax reform (EC 132/2023) is gradually replacing ICMS/ISS with unified IBS and CBS taxes through 2033. States impose ITCMD (inheritance/gift tax) up to 8%.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Honduras vs Brazil: Key Tax Differences (2026)

💰 Income Tax: 🇧🇷 Brazil has a higher top income tax rate (0–25% vs 0–27.5%). 🇭🇳 Honduras is more favourable for high earners.

🛒 VAT/Sales Tax: Brazil has a higher consumption tax (15% vs ~27.5% combined).

🏢 Corporate Tax: 🇭🇳 Honduras offers a lower corporate rate (25% vs 34%), which can influence business location decisions.

📈 Capital Gains: 🇭🇳 Honduras taxes investment gains at a lower rate (10% vs 22.5%), benefiting investors.

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