# 120k Salary After Tax in Panama 2023/24

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This Panama salary after tax example is based on a \$ 120,000.00 annual salary for the 2023 tax year in Panama using the income tax rates published in the Panama tax tables. The 120k salary example provides a breakdown of the amounts earned and illustrates the typical amounts paid each month, week, day and hour. This is particularly useful if you need to set aside part of your income in Panama for overseas tax payments etc.

The table below provides an overview of your wage deductions that you will typically see on a 120k salary in Panama. You can find exact calculation which show how each of these salary deductions were calculated using income tax rates in Panama for 2023

Panama \$ 120,000.00 Income Tax Calculations for 2023
YearlyMonthly4 Weekly2 WeeklyWeeklyDailyHourly%1
Income120,000.0010,000.009,230.774,615.382,307.69474.3165.93100.00%
Taxable Income120,000.0010,000.009,230.774,615.382,307.69474.3165.93100.00%
Income Tax Due23,350.001,945.831,796.15898.08449.0492.2912.8319.46%
Total Deductions23,350.001,945.831,796.15898.08449.0492.2912.8319.46%
Salary After Tax96,650.008,054.177,434.623,717.311,858.65382.0253.1080.54%

## How to calculate income tax in Panama on \$ 120,000.00

Income tax in Panama is calculated using income tax rates and thresholds, these are different for resident taxpayers and non-resident taxpayers. In this Salary Example we use the resident tax tables to produce the Panama salary example, you can calculate non-resident salary examples on the Panama Tax Calculator.

### Panama Taxable Income Calculation

In order to calculate the amount of income tax due on \$ 120,000.00, we first need to calculate the taxable income on \$ 120,000.00. We do this be calculating specific expenses and allowances, these tax deductible items are then subtracted from the total income (\$ 120,000.00) to produce the taxable income.

 \$ 120,000.00 Annual Income in 2023 = \$ 120,000.00 Your Taxable Income in 2023

### Panama Resident Income Tax Calculation

The table below illustrates how a taxable income of \$ 120,000.00 is applied against the 2023 Income Tax Rates and Thresholds to produce the total income tax due.

 \$ 0.00 - \$ 11,000.00 0% \$ 0.00 + \$ 11,000.01 - \$ 50,000.00 15% \$ 5,850.00 + \$ 50,000.01 and over 25% \$ 17,500.00 = Total Income Tax Due \$ 23,350.00