🇵🇦PAB Economy
Panama Salary & Tax Guide
Territorial tax system exempts foreign income
Average Gross Salary
$12,000 / yr
Average Net Take-Home
$11,000 / yr
Top Marginal Tax Bracket
25%
Cost of Living Index
48 (US=100)
Economic & Employment Overview
Professionals in Panama typically earn $12,000 gross per year and keep roughly $11,000 after tax and mandatory contributions. Territorial tax system exempts foreign income. Living costs sit at an index of 48 against a New York baseline of 100.
Leading Industries & Tech Sectors
CanalTourismFinanceLogistics
Immigration & Expat Work Permits
Newcomers usually settle first in Panama City or Colon, where Canal employers sponsor most international relocations. Friendly Nations visa
Major Economic Centers: Panama City, Colon, David
Tax System Breakdown
Single Filer ModelProgressive domestic rates to 25%. The top marginal statutory rate is 25%.
Sample Benchmark at Average Gross ($12,000 USD):
| Gross Salary | $12,000 |
| Total Income Tax Paid | $3,000 |
| Social Contributions / Payroll | $960 |
| Net Annual Take-Home | $8,040 |
| Effective Tax Rate | 33.0% |