Peru Tax Calculator (2026) — Add or Reverse Tax
Peru charges a 18% IGV, a 29.5% corporate tax rate, and a 30% top personal income tax rate.
How to use this calculator:
- Purchase mode — add IGV to a pre-tax price, or reverse a tax-included total to find the pre-tax price and exact tax paid.
- Profit / salary modes — enter an amount to see the corporate tax owed or a ceiling estimate of personal tax at the top marginal rate.
Understanding Peru's Tax System
Peru levies IGV at a standard rate of 18%. Its statutory corporate income tax rate is 29.5%, above the 23.37% global average. The top personal income tax rate is 30%.
Region
South America
IGV rate
18%
vs. world average corporate rate
+6.1 points above the 23.37% global average
Why Reverse Tax Calculation Matters
Receipts and invoices usually show only the tax-included total — not the pre-tax price. Reversing the calculation matters for bookkeeping, expense claims, and cross-border price comparisons. Because dividing by (1 + rate) isn't the same as simply subtracting the rate, doing this by hand is a common source of errors — select "Reverse" in the purchase-mode calculator above to handle it exactly.
History & Context
Peru introduced its IGV (Impuesto General a las Ventas) in August 1991. The 18% total rate is actually a composite of a national IGV component and a separate municipal promotion contribution — a 2026 reform rebalanced that split (cutting the national IGV share while raising the municipal share) without changing the total 18% rate, aimed at boosting fiscal decentralization.
Peru introduced a reduced 8% VAT rate specifically for small hospitality businesses (hotels, restaurants, tourist accommodation) through 2026, rising to 12% in 2027 — a temporary tourism-sector relief measure with a built-in sunset date rather than a permanent carve-out.
Business Use Case
A small hotel in Peru currently charges just 8% IGV instead of the standard 18% under the temporary hospitality relief rate — but must plan for that rate to rise to 12% in 2027, a scheduled increase built into the original 2026 legislation rather than a discretionary future decision.
Real-World Examples
IGV on a purchase
A S/1,000.00 purchase in Peru at 18%:
- Tax: S/1,000.00 × 18% = S/180.00
- Total: S/1,180.00
Corporate tax on profit
S/1,000.00 in company profit in Peru at 29.5%:
- Tax: S/1,000.00 × 29.5% = S/295.00
- After-tax profit: S/705.00
Frequently Asked Questions — Peru Taxes
What is the IGV rate in Peru?▾
What is the corporate tax rate in Peru?▾
What is the top personal income tax rate in Peru?▾
How is tax calculated on a purchase in Peru?▾
How do I reverse Peru's IGV to find the price before tax?▾
References & Sources
Rates last verified for 2026. Tax rates change through national budgets — always confirm current figures with a qualified local tax advisor before making business or relocation decisions. This tool is for estimation and educational purposes only and is not tax, legal, or accounting advice.
Jordan Hayes
Verified AuthorLead Content Editor & Personal Finance Specialist
Jordan Hayes is a personal finance content strategist with 9+ years building educational finance and health resources. He has written and fact-checked over 200 personal finance guides covering mortgage amortization, retirement planning, tax strategy, and budgeting. His work applies IRS publications, Federal Reserve data, and peer-reviewed research to make complex calculations accessible.