Calculate your income tax in Panama, salary deductions in Panama and compare salary after tax for income earned in Panama in the 2023 tax year using the Panama salary after tax calculators.
Select a tax calculator from the list below that matches how you get paid or how your salary package is detailed.
How to calculate your salary after tax in Panama
Follow these simple steps to calculate your salary after tax in Panama using the Panama Salary Calculator 2023 which is updated with the 2023/24 tax tables.
- Resident Status. The Resident status in Panama here refers to your tax status, not necessarily your visa type or domicile. From a tax calculation perspective, your Tax Resident Status affects non-refundable tax credits and income tax allowances. As with most countries with an international workforce, Panama has numerous tax/fiscal Memorandums of Understanding (MOU) and Tax Treaties in place.
- Employment Income. This is the amount of salary you are paid. The Panama tax calculator assumes this is your annual salary before tax. If you wish to enter you monthly salary, weekly or hourly wage, then select the 'Advanced' option on the Panama tax calculator and change the 'Employment Income and Employment Expenses period'.
That's it! Just two simple steps to calculate your salary after tax in Panama with detailed income tax calculations. Need more from the Panama Tax Calculator? More detailed salary calculator or a wage calculator? Simply select 'advanced' to access more features of the tax calculator.
Advanced Features of the Panama Income Tax Calculator
- Tax Assessment Year The tax assessment year is defaulted to 2023, you can change the tax year as required to calculate your salary after tax for a specific year.
- Your Age You age is used to calculate specific age related tax credits and allowances in Panama.
- Number of Children and Number of Children who qualify for Dependents Allowance The number of children you have and their status is used to calculate specific dependents related tax credits and allowances in Panama.
- Number of Working Days in the year The number of working days in the year is used to calculate average daily / weekly etc. earning for the salary calculation and after tax illustrations
- Number of hours worked per week The number of hours worked in the year is used to calculate average daily / weekly / hourly earnings etc. for the salary calculation and after tax illustrations
- Number of weeks worked in the year The number of working weeks in the year is used to calculate average daily / weekly etc. earning for the salary calculation and after tax illustrations
- Employment Income and Employment Expenses period The default Employment Income and Expenses period is 'Annual' meaning the amount you entered as your Employment Income in Panama. is your annual salary before tax. You can change this to monthly, weekly, four weekly, hourly salary etc. as required to calculate your net pay in Panama..
Additional features available with the Panama Tax Calculator
In addition to the features and options described above, the Panama Tax Calculator also has the following features:
- Select Simple or Advanced. The Simple option is mainly used for those who want to quickly calculate their salary after tax, perhaps to review an annual pay rise or incremental pay rise. The Simple tax calculator is also useful for comparing salaries in Panama, great if you are looking at a new job in Panama or comparing salaries in different industries in Panama. It's a particulalry useful tool for Expats in Panama or those looking at the expat lifestyle in Panama. The Advanced Tax Calculator is designed for those who wish to calculate their tax commitments with more detail, for example you may with you calculate your monthly/quarterly/annual tax withholdings to ensure you retain sufficient revenue to cover the cost of your annual self-assessment tax return.
- Normal or Full-Page View. The Normal view allows you to use the Panama Salary Calculator within the normal content, this means you see the standard menus, text and information around the calculator. This view is better suited to those who are doing a quick salary comparison or quickly estimating their monthly tax withholdings in Panama. The Full Page view hides the menus and unnecessary text, providing a clear, uncluttered view of the Salary and Tax Calculator, this is the best view for competing more advanced tax calculations as there is less distraction whilst entering key income and expense information.