Nicaragua Tax Tables 2024 - Tax Rates and Thresholds in Nicaragua

This page contains the tax table information used for the calculation of tax and payroll deductions in Nicaragua in 2024. These tax tables are used for the tax and payroll calculators published on iCalculator™ NI, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Nicaragua or would like to add to or suggest amendments to the information herein then please contact us.

Nicaragua Personal Income Tax Tables in 2024

The Income tax rates and personal allowances in Nicaragua are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Nicaragua Tax Calculator 2024.

In Nicaragua, social security deductions made by employees for contributions to the Nicaraguan Social Security Institute (INSS) are deductible when calculating taxable income for personal income taxes. This means that the amounts contributed towards social security by employees can be subtracted from their gross income before the income tax is calculated. This provision aims to reduce the taxable base of employees, potentially lowering their overall tax burden and encouraging participation in the social security system.

Nicaragua Social Security and Payroll Deduction Rates in 2024

In Nicaragua, social security and payroll deductions are fundamental components of the employment and social welfare system. Managed by the Nicaraguan Social Security Institute (INSS), these deductions are aimed at providing a safety net for workers across various life events, including illness, maternity, retirement, and occupational hazards. Both employees and employers are required to contribute to these funds, ensuring a collaborative effort towards the welfare of the workforce and the broader community. This article outlines the primary types of social security and payroll deductions in Nicaragua and their intended purposes.

The pension and retirement fund is a crucial element of Nicaragua's social security system. Contributions to this fund ensure that employees have access to a pension upon reaching retirement age, providing financial security and stability in their later years. This fund is designed to support retirees, acknowledging their years of service to the economy.

Health insurance contributions are another significant aspect of social security in Nicaragua. These deductions fund the public healthcare system, granting employees access to medical services. This includes preventive care, medical treatment, hospitalization, and prescription medications, ensuring that workers have access to necessary healthcare services without bearing the full cost out-of-pocket.

Maternity and paternity benefits are provided through social security contributions, offering financial support to parents during the period surrounding the birth or adoption of a child. This initiative aims to ensure that parents can take necessary time off work to care for their newborn or newly adopted children, without losing their entire income.

Occupational hazard insurance is funded by employer contributions and provides protection to employees who suffer from work-related accidents or illnesses. This coverage includes medical treatment, rehabilitation, and compensation for lost income during the recovery period. It is a critical component of workplace safety and health policies, promoting safer working environments and practices.

In addition to these core programs, Nicaragua's social security system may include other specific benefits and deductions, such as unemployment insurance and vocational training programs, designed to support workers in maintaining employment and advancing their careers.

Employers in Nicaragua also contribute to these social security funds, often at a higher rate than employees, reflecting their role in ensuring the health and welfare of their workforce. These contributions are seen as an investment in the stability and productivity of the labor force, ultimately benefiting the broader economy.

The administration of social security and payroll deductions in Nicaragua is aimed at promoting social inclusion and equity. By mandating contributions from both employees and employers, the system strives to distribute the financial burden fairly and ensure that all workers have access to essential social services.

While the social security system in Nicaragua provides crucial benefits, it also faces challenges such as sustainability and coverage expansion. Efforts are ongoing to reform and strengthen the system, ensuring that it continues to meet the needs of the Nicaraguan workforce effectively.

In summary, social security and payroll deductions in Nicaragua represent a collaborative effort between the government, employers, and employees to build a comprehensive social welfare system. These contributions fund a range of benefits that support workers throughout their lives, contributing to a more stable and equitable society.

Nicaragua VAT Rates in 2024

VAT rates for Nicaragua are reviewed annually, you can use the VAT Calculator to calculate VAT due in Nicaragua or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.

Historic Tax Tables supported for Nicaragua

The following tax tables are supported by iCalculator™ NI as part of the suite of free tax tools we provide for Nicaragua.