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ARCA Publishes New Income Tax Scales and Deductions for January–June 2026

The retroactive January 1 move prompts payroll recalculations that may generate refunds.

Overview

  • Workers begin paying Ganancias at net monthly incomes of $2,490,038 for a single employee without children, $2,894,000 for a married worker without children, and $3,302,179 for a married worker with two children.
  • Employers were told to update payroll systems and recalculate January withholdings, with refunds expected where 2025 tables were applied, according to tax adviser Sebastián Domínguez.
  • Personal deductions for the semester include a non-taxable minimum of $5,151,802.50, a spouse deduction of $4,851,964.66, a child deduction of $2,446,863.48, and a special deduction of $18,031,308.76.
  • The progressive annual scale runs from 5% on the lowest bracket to a top rate of 35% for net taxable income above about $60,750,914, with specified fixed cumulative amounts per bracket.
  • For retirees and pensioners, the new non-taxable minimum is $2,793,834.56 effective February 1, to be applied by paying agencies in their role as withholding agents.