Uruguay tax calculator

This calculator may come in handy for those who are unfamiliar with Uruguay’s tax system and want to calculate the net salary and basic taxes.

As of 1 July 2026, the minimum monthly salary will be 25,383 UYU under the current law.

The Uruguayan social security system is comprehensive, covering pension contributions, health insurance, sick pay, and unemployment insurance. Social security contributions are compulsory, based on your salary, including bonuses and commissions, and are borne by the employer and the employee. Here, we only calculate and indicate the part paid by the employee.

The social security contribution system covers all employees. All expatriates working in Uruguay temporarily or permanently, even for periods of less than one year, are subject to the social security system, regardless of their tax residency, unless they are foreign workers entering under a temporary transfer from countries with agreements to that effect with Uruguay, or special regimes.

This is one of the deductions included in the social security contribution. The contribution rate is 15%, and is deducted from the monthly salary. Pension contributions apply to the portion of salaries that do not exceed  288,836 UYU. Pension contributions cannot exceed 43,325.40 UYU.

This is a contribution to the national health insurance system or FONASA (Fondo Nacional de Salud). The contribution rate ranges from 3%-8%, depending on the amount of income and the worker’s family structure:

Key points to remember:

• Employer contribution: In addition to the employee's withholding, the employer contributes a fixed 5%.
• Family benefits: By paying the higher rates (6% or 8%), an employee's children and/or spouse are also covered by the health insurance system.
• Annual Adjustment: The 17,160 UYU threshold is updated every January based on inflation.

The Labor Reconversion Fund (FRL — Fondo de Reconversión Laboral) is a contribution used to fund the retention of unemployed individuals through the National Institute of Employment and Vocational Training (INEFOP). Both the employee and the employer contribute 0.1% of the gross monthly salary.

Individuals are considered tax residents in Uruguay if:

• They stay in Uruguay for more than 183 days during any calendar year. 
• They have a spouse or dependent children habitually residing in Uruguay.
• The center of their vital or economic interests is located in Uruguay.

Individuals who do not meet any of these conditions are considered non-residents. 

As a tax resident, an employee pays Income tax on resident individuals (IRPF) based on the progressive tax rate.

Non-tax residents pay Income tax for non-resident individuals (IRNR) at a flat rate of 12%.

Tax residents pay personal income tax — IRPF (Impuesto a la Renta de las Personas Físicas)

To calculate the monthly tax payable, we first calculate the taxable income and then multiply it by the applicable tax rate below to find IRPF sobre ingresos:

After that, we calculate the “tax effect” of deductions (IRPF sobre deducciones). 

Final tax = IRPF sobre ingresos − IRPF sobre deducciones Non-tax residents pay IRNR (Impuesto a la Renta de No Residentes).

The contribution rate is 12%, which is deducted from the monthly salary.

An estimated amount of tax payable is deducted from the employee’s monthly salary by their employer. The employer completes the UY tax declarations. Employees only need to complete a statement if:

• They would like to apply for tax returns whenever they are eligible. 
• They had more than one employer (multi-employment) during the year.

This process takes place in June every year, and employees can request a return from the previous year.

While we try to provide accurate, up-to-date calculations, this calculator should only be used as a guide for the deductions you can expect from your salary when working in Uruguay. We cannot guarantee the calculator’s validity, and we will not be held responsible for any mistakes or inaccuracies arising from its use.