Tax ContractorsLatam

Tax calculator 2026

Simple vs. Ordinary regime calculator

Estimate how much you would pay each year under each regime as a contractor providing services from Colombia.

Income currency
US$
$

Check today's official rate (TRM) at the Banco de la República.

Estimated annual gross income
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Ordinary Regime: deduction to apply

They are mutually exclusive. The 25% exemption is capped at 790 UVT per year.

Municipality (ICA, Ordinary only)

Annual tax burden compared

Simple Regime

Annual SIMPLE tax
Consolidated rate
Mandatory health + pension
Total annual burden
Annual net income
≈ net per month

Ordinary Regime

Annual income tax
Mandatory health + pension
Municipal ICA
Total annual burden
Annual net income
≈ net per month

Break-even point:

See calculation details ›
Calculation assumptions ›
  • 2026 values: UVT $52,374 and minimum monthly wage (SMMLV) $1,750,905.
  • Monthly contribution base (IBC): 40% of monthly income, with a floor of 1 SMMLV and a cap of 25 SMMLV ($43,772,625).
  • Pension 16% and health 12.5% of the IBC. Pension Solidarity Fund of 1% to 2% when the IBC is 4 SMMLV or more.
  • Simple Regime: a consolidated rate on total annual gross income (not marginal) of 5.9%, 7.3%, 12% or 14.5% depending on the UVT bracket. Cap of 100,000 UVT per year. Your own pension contributions are not credited and ICA is considered included. Mandatory health and pension contributions are paid under both regimes and are added to the total burden on both cards.
  • Ordinary Regime: health and pension are subtracted as non-taxable income, then the selected deduction and the Art. 241 Tax Code table are applied.
  • Reference ICA rates per thousand: Bogotá 9.66; Medellín 7; Cali 6; Barranquilla 8; other municipality at the rate you enter.
  • Other personal deductions and next year's income tax advance are not included.
  • The break-even point is found by varying monthly income up to the Simple Regime cap of 100,000 UVT per year.
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This calculator provides a general estimate for information only and is not professional tax advice. Your case may have details that change the result.