Chile Tax Calculator 2025: Complete Guide to Chilean Income Tax & Social Security

Chile's tax system features progressive income tax rates, AFP pension contributions, and Fonasa health insurance. This comprehensive guide will help you understand and calculate your tax liability in Chile for 2025.

Chile Tax System Overview

Key Components

Impuesto a la Renta: Personal income tax with progressive rates from 0% to 40%
AFP (Administradoras de Fondos de Pensiones): Private pension system (~10% employee contribution)
Fonasa (Fondo Nacional de Salud): Public health insurance (~7% employee contribution)
Deductions: Various personal and family deductions
Tax Credits: Dependent credits and other reliefs
Monthly Filing: Employees have tax withheld monthly

Who is Tax Resident?

Chilean residents: Taxed on worldwide income
Non-residents: Taxed on Chilean-source income only
Resident for tax purposes: Present in Chile for 183+ days in a 12-month period or have a permanent home in Chile

Income Tax Brackets 2025

Progressive Tax Rates

| Annual Income (CLP) | Tax Rate |

|---------------------|----------|

| Up to CLP 8,410,020 | 0% (Exempt) |

| CLP 8,410,021 - CLP 18,690,048 | 4% |

| CLP 18,690,049 - CLP 31,150,080 | 8% |

| CLP 31,150,081 - CLP 43,610,112 | 13.5% |

| CLP 43,610,113 - CLP 56,070,144 | 23% |

| CLP 56,070,145 - CLP 74,760,192 | 30.4% |

| CLP 74,760,193 - CLP 99,680,256 | 35.5% |

| Over CLP 99,680,256 | 40% |

Example Calculation

Annual income: CLP 30,000,000

CLP 0 - CLP 8,410,020: CLP 0 (0%)
CLP 8,410,021 - CLP 18,690,048: CLP 411,201 (4%)
CLP 18,690,049 - CLP 30,000,000: CLP 904,799 (8%)
Total income tax: CLP 1,316,000

AFP (Pension) Contributions

AFP Rates 2025

Employee contribution: 10% of salary (up to limit)
Employer contribution: Additional contributions
Administrative fee: ~1.5% of contribution
Covers: Retirement pension, disability, death benefits

AFP Calculation Example

Monthly income: CLP 2,500,000

Employee AFP: CLP 2,500,000 × 10% = CLP 250,000
Annual AFP: CLP 3,000,000

AFP Benefits

Retirement pension (based on accumulated funds)
Disability benefits
Survivor benefits
Voluntary contributions allowed

Fonasa (Health Insurance)

Fonasa Rates 2025

Employee contribution: 7% of salary
Covers: Public healthcare services
Alternative: Private health insurance (ISAPRE) available

Fonasa Calculation Example

Monthly income: CLP 2,500,000

Employee Fonasa: CLP 2,500,000 × 7% = CLP 175,000
Annual Fonasa: CLP 2,100,000

Fonasa Benefits

Medical consultations
Hospitalization
Prescription drugs
Emergency services
Preventive care

Tax Deductions and Credits

Standard Deductions

Personal exemption: CLP 8,410,020 per year (2025)
Dependent deduction: CLP 2,500,000 per dependent
Medical expenses: Up to 50% of gross income
Education expenses: Up to CLP 1,500,000 per dependent
Mortgage interest: Up to CLP 3,000,000 per year

Other Deductible Expenses

Donations to approved charities (up to 10% of gross income)
Life insurance premiums
Funeral expenses
Professional expenses (limited)

Tax Credits

Dependent credit: CLP 200,000 per dependent per year
Elderly credit: CLP 200,000 (over 65)
Disability credit: CLP 200,000

Total Tax Burden Example

Single Person Earning CLP 30,000,000

Income tax: CLP 1,316,000
AFP: CLP 3,000,000
Fonasa: CLP 2,100,000
Total deductions: CLP 6,416,000
Net income: CLP 23,584,000
Effective rate: 21.4%

Married Couple with 2 Children Earning CLP 50,000,000

Personal exemption: CLP 8,410,020
Dependent deductions: CLP 5,000,000 (2 children)
Taxable income: CLP 36,589,980
Income tax: CLP 2,234,000
AFP: CLP 5,000,000
Fonasa: CLP 3,500,000
Total deductions: CLP 10,734,000
Net income: CLP 39,266,000
Effective rate: 21.5%

Self-Employed Tax

Simplified Tax Regime

Simplified tax regime for small businesses
Fixed monthly payments based on income category
Annual income limit: CLP 50,000,000
Includes: Income tax, VAT

Regular Self-Employed

Income tax: Same progressive rates as employees
AFP: Voluntary enrollment available
Fonasa: Voluntary enrollment available
Must file monthly (if income > CLP 8,410,020)
IVA (VAT): 19% on services (if applicable)

Tax Planning Strategies

1. Maximize Deductions

Claim all dependents
Medical and education expenses
Mortgage interest deductions
Professional expenses

2. Use Tax-Advantaged Accounts

AFP voluntary contributions
Tax-deferred growth
Employer matching available

3. Medical Expenses

Up to 50% of gross income deductible
Includes insurance premiums
Keep all receipts

4. Education Expenses

Up to CLP 1,500,000 per dependent
School fees, books, materials
University tuition included

Common Deductions

Medical Expenses

Medical consultations
Prescription drugs
Dental care
Health insurance premiums
Up to 50% of gross income

Education Expenses

School fees
University tuition
Books and materials
Up to CLP 1,500,000 per dependent

Housing Expenses

Mortgage interest (up to CLP 3,000,000)
Property taxes
Home improvements (limited)

Tax Deadlines

Key Dates

Monthly: Tax withholding for employees
April 30: Annual tax return due
Monthly: AFP and Fonasa contributions
Quarterly: Estimated tax payments (self-employed)

Late Filing Penalties

Minimum: CLP 50,000
Maximum: 50% of tax due
Interest: 1.5% per month

Using Our Chile Tax Calculator

Our calculator provides:

Accurate 2025 tax calculations
AFP contribution estimates
Fonasa contribution estimates
Deduction applications
Net income after all taxes
Effective tax rate
Dependent credit calculations

Input required:

Annual income
Marital status
Number of dependents
Medical/education expenses
Mortgage interest

High Earners

Additional Considerations

Higher marginal rates (up to 40%)
Wealth tax considerations
International tax planning
Investment optimization

Exit Tax

Tax on leaving Chile
Deemed disposal rules
Consider timing of departure

Non-Resident Tax

Chilean-Source Income

Employment in Chile
Rental income from Chilean property
Dividends from Chilean companies
Subject to Chilean tax

Tax Treaties

Chile has treaties with many countries
Prevents double taxation
May reduce withholding taxes

Common Mistakes to Avoid

1. Not Claiming Dependents

CLP 2,500,000 deduction per dependent
Significant tax savings
Include all eligible dependents

2. Missing Deductions

Medical expenses up to 50%
Education expenses
Mortgage interest
Professional expenses

3. AFP/Fonasa Calculation Errors

AFP is 10% of salary
Fonasa is 7% of salary
Different rates for different income levels

4. Late Filing

April 30 deadline
Significant penalties
Interest charges

Getting Professional Help

When to Consult a Tax Advisor

Complex situations:

Multiple income sources
Self-employment
International tax issues
High net worth individuals

Life events:

Marriage or divorce
Having children
Buying property
Starting a business

Finding Qualified Advisors

Look for:

Contador Público (CP)
SII-registered tax advisors
International tax specialists
Chilean tax law experts

Conclusion

Chile's tax system combines progressive income tax with comprehensive pension and health insurance contributions. Understanding tax rates, AFP contributions, and Fonasa payments is essential for accurate tax planning.

With progressive rates from 0% to 40%, AFP at 10%, and Fonasa at 7%, your total deductions can be significant. However, generous deductions for medical expenses, education, and dependents can help reduce your tax liability.

Use Our Free Chile Tax Calculator →

Get an accurate estimate of your tax liability and net income. For complex situations, especially involving self-employment or international tax matters, consult with a qualified contador público.

Disclaimer: This guide provides general information only. Chilean tax law changes regularly, and individual circumstances vary. Always consult with a qualified tax professional for advice specific to your situation.