Colombia Net Salary Calculator
Calculate your net salary after taxes and deductions in Colombia.
Notes:
- This calculator provides estimates only and should not be used for official tax purposes.
- The calculation uses the current tax withholding tables in Colombia.
- Additional deductions such as AFC, voluntary pension contributions, or other special situations are not included.
- For service provision contracts, it is assumed that the contractor is responsible for 100% of their contributions.
How We Calculate Your Net Salary in Colombia
Tax Withholding
Tax Withholding is an advance collection mechanism for income tax in Colombia. The current rates are:
| UVT Ranges | Marginal Rate | Tax |
|---|---|---|
| From 0 to 95 UVT | 0% | 0 |
| From >95 to 150 UVT | 19% | (Taxable base - 95 UVT) × 19% |
| From >150 to 360 UVT | 28% | (Taxable base - 150 UVT) × 28% + 10 UVT |
| From >360 to 640 UVT | 33% | (Taxable base - 360 UVT) × 33% + 69 UVT |
| From >640 to 945 UVT | 35% | (Taxable base - 640 UVT) × 35% + 162 UVT |
| From >945 to 2300 UVT | 37% | (Taxable base - 945 UVT) × 37% + 268 UVT |
| More than 2300 UVT | 39% | (Taxable base - 2300 UVT) × 39% + 770 UVT |
The value of the UVT (Tax Value Unit) is updated annually by DIAN. For 2023, the UVT value is 42,412 COP.
Social Security Contributions
Social security contributions in Colombia are calculated based on the monthly salary and consist of:
- Health: 4% contributed by the employee (8% for independent contractors)
- Pension: 4% contributed by the employee (16% for independent contractors)
- Pension Solidarity Fund: Applies to salaries higher than 4 minimum wages (SMLV)
For employees with an employment contract, the employer contributes an additional 8.5% to health and 12% to pension. In service provision contracts, the contractor must assume 100% of these contributions.
Pension Solidarity Fund
The Pension Solidarity Fund is an additional mandatory contribution for those who earn more than 4 legal monthly minimum wages (SMLV):
| Salary Range (SMLV) | Additional Contribution |
|---|---|
| From 4 to 16 SMLV | 1.0% |
| From >16 to 17 SMLV | 1.2% |
| From >17 to 18 SMLV | 1.4% |
| From >18 to 19 SMLV | 1.6% |
| From >19 to 20 SMLV | 1.8% |
| More than 20 SMLV | 2.0% |
Tips to Optimize Your Net Salary
- Use AFC accounts: Housing Promotion Savings (AFC) accounts allow you to reduce the taxable base for income tax.
- Contribute to voluntary pensions: Contributions to voluntary pension funds also reduce the taxable base (with certain limits).
- Take advantage of tax benefits: Housing interest, prepaid medicine payments, and education expenses may be deductible.
- Declare your economic dependents: If you have dependents, you can reduce your taxable base.
- Request VAT refunds: If you make purchases with electronic means, you could access VAT refunds.