Chile Income Tax Calculator 2026
Calculate your Chilean taxes: Impuesto a la Renta + AFP Pension + Salud Contributions
~0 USD
0 CLP
Effective rate: 0%
0 CLP
AFP + Salud + Cesantia (~19.1%)
0 CLP
Monthly: 0 CLP
Income Distribution
Effective total rate: 0%
UTM (Unidad Tributaria Mensual) = ~CLP 66,362 (2026 estimate)
Complete Guide to Chilean Taxation
Chile has a progressive income tax system known as Impuesto a la Renta or Impuesto de Segunda Categoria for employment income. The tax brackets are based on the UTM (Unidad Tributaria Mensual), which is adjusted monthly for inflation. Chilean taxation is based on the residence principle: residents are taxed on worldwide income, while non-residents are only taxed on Chilean-source income.
Income Tax Brackets 2026 (8 Progressive Rates)
Chilean income tax uses a progressive system with 8 brackets based on UTM:
- 0 - 13.5 UTM: 0% (exempt - approximately CLP 896,000/month)
- 13.5 - 30 UTM: 4%
- 30 - 50 UTM: 8%
- 50 - 70 UTM: 13.5%
- 70 - 90 UTM: 23%
- 90 - 120 UTM: 30.4%
- 120 - 310 UTM: 35%
- Above 310 UTM: 40% (maximum rate)
Note: The UTM value is updated monthly. For 2026, it is estimated around CLP 66,362.
Social Security Contributions (~19.1% employee)
Prevision Social (Social Security)
Chilean social security includes mandatory pension (AFP), health insurance, and unemployment insurance.
| Contribution | Employee Rate | Employer Rate | Description |
|---|---|---|---|
| AFP (Pension) | 10% | - | Mandatory pension fund |
| AFP Commission | ~1.5% | - | AFP management fee (varies by provider) |
| Salud (Health) | 7% | - | Fonasa or Isapre |
| Seguro de Cesantia (Unemployment) | 0.6% | 2.4% | Unemployment insurance |
| Seguro de Invalidez y Sobrevivencia | - | 1.53% | Disability and survivor insurance |
| Accidentes del Trabajo | - | 0.93% | Work accidents (basic rate) |
| Total Employee | ~19.1% | ~4.86% | Before income tax |
AFP - Pension System
Administradoras de Fondos de Pensiones
- Chile has a private pension system managed by AFPs
- Workers must contribute 10% of gross salary to their pension account
- Additional commission (~1.5%) varies by AFP provider
- Contributions are capped at 81.6 UF per month (~CLP 3,000,000)
- Workers can choose between 5 fund types (A-E) based on risk tolerance
Health Insurance - Fonasa vs Isapre
Fonasa (Public)
Public health system - 7% mandatory contribution, covers basic healthcare, lower costs but longer wait times
Isapre (Private)
Private health insurance - minimum 7%, can pay more for better coverage, faster access to specialists
Tax Benefits and Deductions
APV - Ahorro Previsional Voluntario
- Voluntary pension savings with tax benefits
- Regime A: 15% state bonus on contributions (up to 6 UTM/year)
- Regime B: Tax deduction on contributions (up to 50 UF/month)
- Popular for reducing taxable income for higher earners
Cuenta 2 - Additional Savings
- Additional voluntary savings in AFP account
- Can be withdrawn for specific purposes (housing, education, health)
- No immediate tax benefit but earnings are tax-free until withdrawal
Mortgage Interest Deduction
- Deduction for mortgage interest payments
- Applies to first home purchases
- Maximum deduction: 8 UTA (Unidad Tributaria Anual) per year
- Must be for properties valued up to 4,500 UF
Types of Income Tax in Chile
Primera Categoria
Corporate/business income - flat 27% rate for companies
Segunda Categoria
Employment income - progressive rates 0-40% (this calculator)
Global Complementario
Annual tax on total income for individuals - same brackets as Segunda Categoria
Impuesto Adicional
Withholding tax on payments to non-residents - typically 35%
France vs Chile Comparison
| Criteria | France | Chile |
|---|---|---|
| CLP 24M (~EUR 24,000) gross salary | ~EUR 17,500 net | ~CLP 19.4M (~EUR 19,400) net |
| Maximum marginal rate | 45% | 40% |
| Social contributions (employee) | ~22% | ~19.1% |
| Tax-free allowance | ~EUR 10,777 | 13.5 UTM/month (~CLP 896,000) |
| Family quotient | Yes (parts) | No |
| Pension system | Public (PAYG) | Private (AFP) |
| Health system | Public (Securite Sociale) | Choice (Fonasa/Isapre) |
| Cost of living (index) | 100 | ~50-55 |
Tax Calendar and Filing
- Fiscal year: January 1 to December 31
- Annual filing deadline: April 30 (Operacion Renta)
- Monthly withholding: Employer withholds taxes at source
- Online filing: SII (Servicio de Impuestos Internos) website
- Form: Formulario 22 for annual tax return
- Refund: Usually within 30 days of filing if owed
Minimum Wage and Key Thresholds
Key 2026 Values (estimated)
- Sueldo Minimo (Minimum Wage): ~CLP 500,000/month
- UTM (Unidad Tributaria Mensual): ~CLP 66,362
- UTA (Unidad Tributaria Anual): ~CLP 796,344
- UF (Unidad de Fomento): ~CLP 37,000 (inflation-indexed)
- AFP contribution cap: 81.6 UF (~CLP 3,000,000/month)
Recent Tax Reforms and Pension Overhaul
Chile has been undergoing a significant pension reform that directly impacts workers' tax and contribution obligations. The new legislation increases employer-side pension contributions by 6 percentage points phased in over several years, bringing the combined contribution toward 16% of gross salary. This additional employer contribution is channelled partly into individual AFP accounts and partly into a new collective solidarity fund designed to boost pensions for lower-income retirees. On the tax front, Chile's Servicio de Impuestos Internos (SII) has strengthened enforcement of cross-border income reporting under the Common Reporting Standard (CRS) and OECD information exchange agreements, meaning Chilean residents with foreign bank accounts or investments now face greater scrutiny. The government has also revised rules around digital platform taxation, requiring platforms such as Uber, Airbnb, and freelance marketplaces to report user earnings directly to the SII. For small businesses, the Pro-Pyme regime offers simplified accounting and preferential tax rates of just 10% on retained profits up to certain revenue thresholds, making it an attractive option for entrepreneurs. Chile's unique inflation-indexed unit system (UF, UTM, UTA) ensures that tax brackets, deductions, and thresholds are automatically adjusted for inflation, preventing the bracket creep that affects many other countries.
Expat Tips: Living and Working in Chile
Foreign professionals moving to Chile benefit from a three-year grace period during which they are taxed only on Chilean-sourced income, regardless of their worldwide earnings. After this initial period, tax residents become subject to Global Complementario tax on worldwide income. Tax residency is generally established after spending more than 183 days in Chile within a 12-month period, or by establishing a domicile with the intent to remain. Chile maintains double taxation agreements with over 30 countries, including France, Spain, the UK, and several Latin American neighbours. One critical consideration for expats is the AFP (pension fund administrator) system: foreign workers must contribute just as Chilean nationals do, at approximately 12.5% of gross salary (including disability and survivor insurance), but those who leave Chile permanently can request a refund of their accumulated pension balance after proving they have left the country. The Chilean tax return, known as Declaracion de Renta, must be filed annually by April 30 through the SII website. Chile's tax administration is remarkably digitized: the SII pre-populates returns with employer-reported income, and most employees receive a proposed tax return (Propuesta de Declaracion) that they can simply review and accept. For those earning salary income only, the monthly withholding (retencion) performed by the employer typically covers the full tax liability, making the annual filing largely a formality or an opportunity to claim additional deductions such as APV (voluntary pension savings), mortgage interest, or education expenses.
Chile is often considered the most stable economy in Latin America. Compare its taxation with neighbouring countries on the continent.