How income tax works in Colombia
Colombian tax residents are generally taxed on worldwide income and gains. Non-residents are generally taxed only on Colombian-source income and gains, although Colombian assets and permanent establishments have their own rules.
Resident individuals calculate tax through cedular categories, including general income, pensions and dividends. The general resident table is expressed in UVT and reaches a 39% marginal rate.
Employment income is usually subject to payroll withholding, while self-employed and business income is settled through the annual return and, where applicable, advance payments. The 40% limit on many work-income deductions and exempt income is an important planning constraint.
Income tax brackets in Colombia
| Bracket | Rate | Notes |
|---|---|---|
| Up to 1,090 UVT | 0% | No tax in this band |
| More than 1,090 to 1,700 UVT | 19% | (Taxable income in UVT − 1,090) × 19% |
| More than 1,700 to 4,100 UVT | 28% | Plus 116 UVT |
| More than 4,100 to 8,670 UVT | 33% | Plus 788 UVT |
| More than 8,670 to 18,970 UVT | 35% | Plus 2,296 UVT |
| More than 18,970 to 31,000 UVT | 37% | Plus 5,901 UVT |
| More than 31,000 UVT | 39% | Plus 10,352 UVT |
Tax rates at a glance
- Entry rate
- 0%Up to 1,090 UVT
- First marginal band
- 19%
- Highest marginal rate
- 39%
- Non-resident ordinary rate
- 35%
- 2026 UVT
- COP 52,374
- Work-income deduction/exemption cap
- 40% and 5,040 UVT cap
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsContractorsLocal professionalsRegional managers
Watch out for
- Spending more than 183 days in Colombia during a rolling 365-day period is one route to tax residence, but Colombian nationals and people with strong economic or family ties can require a broader residence analysis.
- Residents generally report foreign salary, interest, dividends, gains and assets. A foreign bank account is not outside the Colombian tax analysis merely because the account is abroad.
- Withholding is a prepayment or collection mechanism in many cases, not a universal substitute for the annual return. Filing obligations depend on income, assets, payments and taxpayer status.
- Social security is separate from income tax. A dependent employee normally has 4% health and 4% pension withheld, while the employer funds the larger share.
Frequently asked questions
What is the top personal income tax rate in Colombia?
The top marginal rate for resident individuals is 39%. Non-residents generally face a 35% rate on ordinary Colombian-source income, subject to specific rules and treaties.
When does a person become tax resident in Colombia?
Spending more than 183 days in Colombia during a relevant 365-day period is one statutory test. Other rules can apply, especially to Colombian nationals and people with substantial ties.
Is foreign income taxed in Colombia?
Generally yes for Colombian tax residents, who are normally taxed on worldwide income. Non-residents are generally limited to Colombian-source income and gains.