How much is a $1,500 gross monthly salary after tax (net, take-home) in Panama?
For example, a gross salary of $1,500 per month leaves about $1,288 net, after $66 income tax and $146 in social contributions, an effective deduction rate of 14.12%.
Income tax in Panama is progressive: marginal rates rise from 15% to 25% as income grows. Employees also pay social contributions of around 9.75% of gross salary. The standard VAT rate is 7%.
Income tax brackets in Panama (2026)
Annual taxable income
Tax rate
Up to $11,000
0%
Up to $50,000
15%
$50,000 and above
25%
Approximate 2026 estimate. Simplified model, verify before relying on it. Not tax advice.