Colombia Tax Rates 2026

Income tax in Colombia ranges from 0.00% to 39.00% in 2026. The 0.00% rate applies to low earners, while the top marginal rate of 39.00% applies to the highest income bracket. The estimated effective rate at average income is approximately 15.9%.

The standard corporate income tax rate in Colombia is 35.00% as of 2026. This is above the global average corporate tax rate.

The standard VAT (Value Added Tax / GST) rate in Colombia is 19.00%. Reduced rates typically apply to food, medicine, and other essential goods..

Capital gains tax in Colombia is 10.00% in 2026. Dividend income is taxed at 10.00%.

In Colombia, employees contribute 4.00% of their gross salary to social security. Employers contribute an additional 12.00%. These contributions typically cover pensions, healthcare, and unemployment insurance.

Colombia does not currently levy a national inheritance or estate tax. Assets passed to heirs are generally not subject to a separate succession duty.

When buying property in Colombia, a property transfer or stamp duty tax of approximately 1.50% is applied to the purchase price. This is a one-time tax paid at the time of purchase and is typically the responsibility of the buyer.

Colombia has a high overall tax burden. The maximum combined income tax and employee social security rate reaches 43%.

The top income tax rate in Colombia is 39.00%, compared to a Americas average of 33.2% among neighbouring countries. Colombia taxes income at a higher rate than the regional average.

The effective tax rate is the actual percentage of income paid in tax — lower than the top marginal rate because lower brackets are taxed at lower rates. In Colombia, the estimated effective income tax rate for an average earner is approximately 15.9% (2026), compared to the headline top rate of 39.00%. Adding employee social security of 4.00% gives a total effective burden of roughly 19.1% on gross pay.

Colombia uses a progressive income tax system with rates ranging from 0.00% at the lowest bracket to 39.00% at the top bracket (2026). There is effectively a tax-free band at the bottom — income up to the personal allowance threshold is taxed at 0%. The number and thresholds of brackets vary by country and are typically adjusted annually for inflation.

Dividend income in Colombia is taxed at 10.00% (2026). This is lower than the top income tax rate of 39.00%, meaning dividend income is taxed more favourably than employment income. Withholding tax may also apply to dividends paid to non-residents.

In Colombia, tax residency is typically determined by the number of days spent in the country (often 183 days per year) or by having a permanent home there. Tax residents are liable for income tax at the same rates as citizens — 0.00% to 39.00% — on their Colombia-sourced or worldwide income depending on the tax regime. Non-residents are typically taxed only on income sourced within Colombia. Colombia has tax treaties with many countries to prevent double taxation.

Freelancers and self-employed individuals in Colombia typically pay income tax at the same progressive rates as employees — 0.00% to 39.00% — on their net profit after allowable business expenses. Unlike employees who split social security with their employer, self-employed workers often pay both the employee (4.00%) and employer (12.00%) portions themselves, significantly increasing the total tax burden. Self-employed workers are usually required to file a self-assessment tax return and make advance tax payments during the year.

Colombia levies a wealth or net worth tax on individuals whose total assets exceed a certain threshold. This is an annual tax on the value of assets — including property, investments, and savings — above the exemption limit. Rates are typically low (0.5–2.5%) but apply to the total value of qualifying assets.

The standard income tax return filing deadline in Colombia is typically between March and July for the previous tax year. Extensions are sometimes available but must be requested in advance. Filing late typically incurs interest charges and penalties. Most countries require employees whose tax is fully withheld at source to file only if they have additional income, deductions to claim, or earned above a threshold.