Chile (CL)
South America's most stable and developed economy, Chile stretches 4,300 km from the Atacama Desert to Patagonia.
Tax & Payslip Guide
Understanding your taxes in Chile — tax year January 1 – December 31.
📊 Income Tax Brackets
| Income from | Income to | Rate | Notes |
|---|---|---|---|
| 0 | 918,000 | 0% | Up to approximately CLP $918,000/month (13.5 UTM at ~CLP $68,000 UTM value). Effective zero-rate band. The UTM (Unidad Tributaria Mensual) is adjusted monthly for inflation by the SII. |
| 918,001 | 2,040,000 | 4% | 13.5–30 UTM monthly (~CLP $918,001–2,040,000). Applies to income in this band only (marginal system). |
| 2,040,001 | 3,400,000 | 8% | 30–50 UTM monthly (~CLP $2,040,001–3,400,000). |
| 3,400,001 | 4,760,000 | 13.5% | 50–70 UTM monthly (~CLP $3,400,001–4,760,000). |
| 4,760,001 | 6,120,000 | 23% | 70–90 UTM monthly (~CLP $4,760,001–6,120,000). |
| 6,120,001 | 8,160,000 | 30.4% | 90–120 UTM monthly (~CLP $6,120,001–8,160,000). |
| 8,160,001 | 10,200,000 | 35% | 120–150 UTM monthly (~CLP $8,160,001–10,200,000). |
| 10,200,001 | ∞ | 40% | Over 150 UTM monthly (~CLP $10,200,001+). Top marginal rate. The UTM values above are approximate based on the 2026 UTM of ~CLP $68,000; the SII publishes the exact UTM each month. |
🏛️ Social Contributions
Mandatory pension savings paid to the employee's chosen AFP (Administradora de Fondos de Pensiones). Employee pays 10% of gross salary plus the AFP's commission fee. Contributions go into the employee's individual retirement account. AFP choices in 2026: AFP Habitat, Provida, Capital, Cuprum, PlanVital, Modelo, Uno (low-cost option). AFP Uno introduced in 2024 for workers earning up to 5 minimum wages.
Mandatory health contribution paid entirely by the employee. With FONASA (public system), the 7% goes to the Fondo Nacional de Salud. With ISAPRE (private), the 7% plus any voluntary top-up goes to the chosen private insurer. Employer does not contribute to health insurance in Chile.
Managed by the AFC Chile (Administradora de Fondos de Cesantía). Employee contributes 0.6% of gross salary for indefinite (plazo indefinido) contracts. Fixed-term (plazo fijo) contract employees pay nothing but employers pay 3.0%. Contributions fund the worker's individual unemployment account plus a solidarity fund. Benefits paid upon involuntary termination (up to 5 months for indefinite; up to 3 months for fixed-term from solidarity fund).
Paid entirely by the employer. Covers disability pension and survivor benefits for AFP affiliates. Rate is tendered periodically — the 2026 rate applies to all AFPs under the group tender system.
Mandatory employer-paid workplace accident insurance under Ley 16.744. Employer chooses a mutualidad: ACHS (largest), IST, Mutual de Seguridad CChC (construction). Covers medical costs and compensation for workplace accidents and occupational diseases.
🛒 VAT Rates
IVA (Impuesto al Valor Agregado) at 19% applies broadly. Unlike most OECD countries, Chile does not have a reduced VAT rate for food or essential goods — the standard 19% applies to almost all goods and services. Key exemptions: financial services, health services (in some cases), educational services, and exported goods (0% IVA). Rental of residential property is VAT-exempt. Real estate purchases have specific IVA rules. Small businesses (microempresas) with annual sales under UF 3,000 may have simplified VAT obligations.
🧾 Sample Payslip Decoder
🌍 Special Expat Tax Rules
Chile taxes on worldwide income for residents. A person becomes a tax resident when they stay more than 183 days (consecutive or not) in any 12-month period. Non-residents are taxed only on Chilean-source income at 35% flat withholding (Impuesto Adicional). Foreign-source income earned in the first 3 years after becoming resident is exempt from Chilean tax (preferential regime for new residents — confirm current rules with an accountant as this has been subject to reform). Double tax treaties exist with a growing number of countries. APV (Ahorro Previsional Voluntario) contributions are tax-deductible up to UF 600/year under Regime A.
📋 Double Tax Treaties
Chile has double taxation treaties with Argentina, Australia, Austria, Belgium, Brazil, Canada, Colombia, Croatia, Czech Republic, Denmark, Ecuador, France, Ireland, Japan, Malaysia, Mexico, New Zealand, Norway, Paraguay, Peru, Poland, Portugal, Russia, South Korea, Spain, Sweden, Switzerland, Thailand, United Kingdom, and the United States (Investment treaty only — no full DTA with USA as of 2026). For most other countries, unilateral credit relief is available. Verify the current treaty status with your accountant as negotiations are ongoing.
Tax & Payslip
Unlock the complete Tax & Payslip guide for Chile — including every detail, document, tip and link you need.
Become a SupporterSupport the guide on Ko-fi · Unlocks every premium section, everywhere