How to use this calculator
Step 1 — Enter your monthly gross salary in soles.
Step 2 — Select your pension system. ONP (state) costs a flat 13%; AFP (private) costs ~12.9% (10% fund + insurance + commission, varying by AFP). Pension doesn't reduce your taxable income in either case.
Step 3 — Hit "Calculate Net Pay". The calculator shields your first 7 UIT (S/ 38,500/year) from tax, then applies the five bands to the rest.
Tip: if your annual salary is under S/ 38,500, your income tax is zero — only the pension line reduces your pay.
How salary deductions work in Peru
| Annual taxable after 7-UIT deduction | Rate |
|---|
| Up to 5 UIT (S/ 27,500) | 8% |
| 5 – 20 UIT (S/ 110,000) | 14% |
| 20 – 35 UIT (S/ 192,500) | 17% |
| 35 – 45 UIT (S/ 247,500) | 20% |
| Over 45 UIT | 30% |
Your employer withholds monthly based on projected annual income. Non-domiciled workers pay a flat 30% with no deductions. Sources: SUNAT (sunat.gob.pe).
Deductions explained: UIT, the 7-UIT shield, pension
Peru's system revolves around the UIT (Unidad Impositiva Tributaria, S/ 5,500 in 2026). First, the shield: the first 7 UIT (S/ 38,500) of annual income is completely tax-free — most junior salaries owe zero income tax. Second, the bands: 8% to 5 UIT, 14% to 20 UIT, 17%, 20%, then 30% above 45 UIT. Third, pension: 13% to ONP (state) or ~12.9% to AFP (10% fund + ~1.4% insurance + ~1.5% commission, varies by AFP) — and pension does not reduce taxable income. CTS (severance) and two annual gratificaciones are separate benefits, not salary.
Worked examples
Example 1 — S/ 3,000/month, ONP: Annual = S/ 36,000 — below the 7-UIT shield (S/ 38,500), so income tax = S/ 0. Pension = 13% × 3,000 = S/ 390. Take-home = 3,000 − 390 = S/ 2,610/month.
Example 2 — S/ 10,000/month, AFP: Annual = S/ 120,000. Taxable = 120,000 − 38,500 = S/ 81,500. Tax = 8% × 27,500 + 14% × 54,000 = S/ 9,760/year (S/ 813.33/mo). Pension = 12.9% × 10,000 = S/ 1,290. Take-home = 10,000 − 1,290 − 813.33 = S/ 7,896.67/month.
Common mistakes
1. An outdated UIT. The UIT changes yearly — using last year's value shifts every band edge.
2. AFP at a flat 11.37%. The real cost is ~12.9%: the 10% fund contribution plus insurance and the AFP's commission, which varies by provider.
3. Forgetting the 7-UIT shield. The first S/ 38,500 of annual income is tax-free — the single biggest factor in Peruvian take-home.
Sources & verification
Figures compiled from: SUNAT.
Last verified: 23 October 2026.