Nicaragua Tax Tables 2021 - Tax Rates and Thresholds in Nicaragua
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This page contains the tax table information used for the calculation of tax and payroll deductions in Nicaragua in 2021. These tax tables are used for the tax and payroll calculators published on iCalculator™ NI, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Nicaragua or would like to add to or suggest amendments to the information herein then please contact us.
2021 Tax Tables [Quick Links]
Related Calculators
Nicaragua Personal Income Tax Tables in 2021
The Income tax rates and personal allowances in Nicaragua are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Nicaragua Tax Calculator 2021.
Nicaragua Residents Income Tax Tables in 2021
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 0% | Income from C$ 0.000.00 | to | C$ 100,000.00 |
| 15% | Income from C$ 100,000.01 | to | C$ 200,000.00 |
| 20% | Income from C$ 200,000.01 | to | C$ 350,000.00 |
| 25% | Income from C$ 350,000.01 | to | C$ 500,000.00 |
| 30% | Income from C$ 500,000.01 | | and above |
Nicaragua Non-residents Income Tax Tables in 2021
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 20% | Flat rate on all taxable income |
In Nicaragua, social security deductions made by employees for contributions to the Nicaraguan Social Security Institute (INSS) are deductible when calculating taxable income for personal income taxes. This means that the amounts contributed towards social security by employees can be subtracted from their gross income before the income tax is calculated. This provision aims to reduce the taxable base of employees, potentially lowering their overall tax burden and encouraging participation in the social security system.
Nicaragua Social Security and Payroll Deduction Rates in 2021
In Nicaragua, social security and payroll deductions are fundamental components of the employment and social welfare system. Managed by the Nicaraguan Social Security Institute (INSS), these deductions are aimed at providing a safety net for workers across various life events, including illness, maternity, retirement, and occupational hazards. Both employees and employers are required to contribute to these funds, ensuring a collaborative effort towards the welfare of the workforce and the broader community. This article outlines the primary types of social security and payroll deductions in Nicaragua and their intended purposes.
Nicaragua Social Security in 2021: Rates for Employers and Employees| Category | Employee | Employer | Total |
|---|
| Pension & Disability | 4.75% | 13.5% | 18.25% |
| Health Insurance | 2.25% | 6% | 8.25% |
| Labor Healthcare | 0% | 1.5% | 1.5% |
| War Victims | 0% | 1.5% | 1.5% |
| Training Fund (INATEC) | 0% | 2% | 2% |
Nicaragua Social Security and Payroll Deduction in 2021: Earnings Thresholds for Employers and Employees| Category | Employee | Employer |
|---|
| Min. | Max. | Min. | Max. |
|---|
| Pension & Disability | n/a | n/a | n/a | n/a |
| Health Insurance | n/a | n/a | n/a | n/a |
| Labor Healthcare | n/a | n/a | n/a | n/a |
| War Victims | n/a | n/a | n/a | n/a |
| Training Fund (INATEC) | n/a | n/a | n/a | n/a |
Nicaragua VAT Rates in 2021
VAT rates for Nicaragua are reviewed annually, you can use the VAT Calculator to calculate VAT due in Nicaragua or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
Nicaragua VAT Rates| VAT Rate | VAT Description |
|---|
| 0% | Zero Rated |
| 15% | Standard Rate |
Historic Tax Tables supported for Nicaragua
The following tax tables are supported by iCalculator™ NI as part of the suite of free tax tools we provide for Nicaragua.