DoubleTaxationTaxes on salary: El Salvador preliminary data
How much income tax and social contributions are paid on a salary in El Salvador, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | $70,326 ≈ €60,000 |
|---|---|
| Income tax | $14,755 ≈ €12,589 |
| Employee contributions | $7,208 ≈ €6,150 |
| Take-home pay | $48,362 ≈ €41,261 |
| Employer contributions and payroll taxes | $11,428 ≈ €9,750 |
| Employer's labour cost | $81,754 ≈ €69,750 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 $35,163 | €60,000 $70,326 | €120,000 $140,652 |
|---|---|---|---|
| Sole proprietor | $5,314 16.8 % | $14,808 23.4 % | $33,796 26.7 % |
| Company | $9,098 28.8 % | $18,197 28.8 % | $36,394 28.8 % |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover El Salvador yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 1.1721 USD (US dollar is legal tender (Ley de Integración Monetaria), 2026-01-02) ↗
Sources
- Centro de Documentación Judicial — Decreto Ejecutivo No. 10 (30 Apr 2025), ISR withholding tables
- Ministerio de Hacienda — Modificación a las tablas de retención del ISR (Decreto Ejecutivo No. 10)
- US Department of Labor ILAB — Salvadoran Institute of Social Security compliance project (ISSS 7.5% employer / 3% worker)
- Centro de Documentación Judicial — Ley de Impuesto sobre la Renta (Decreto Legislativo 134/1991, as amended)
- SSF — Ley de Impuesto sobre la Renta (consolidated to D.L. 233 of Dec 2012): art. 41 CIT 30%/25%, art. 72 5% final tax on distributed profits
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.