What will the tariffs look like and which salaries are tax-free?

The income tax floor and rates will see a significant adjustment from January 2026 due to the semi-annual update by CPI

12/28/2025 – 05:46

The Customs Collection and Control Agency (ARCA) has already reported the update of the income tax for all employees in a dependent relationship for 2026.

This is because this tax will undergo a significant adjustment from January 2026, since this month will be the date of the automatic semi-annual update established by current legislation.

Half-year results update 2026: how it will be implemented

According to current regulations, an automatic review is set up that adjusts the amount of deductions twice a year, in January and July, using the Consumer Price Index (CPI) of the previous semester as a reference.

The mechanism aims to preserve taxpayers’ purchasing power and prevent inflation from causing more people to be affected by the tax.

Since the second half of 2025, personal deductions and tariffs have increased by 15.10%, in line with inflation accumulated in the first half of the year. Meanwhile, projected inflation for the July-December 2025 period is 11.73%, so personal deductions and salary floors will be significantly changed taking this percentage into account.

Personal deductions 2026: the new values

The deductions that can be calculated between January and June 2026 would be determined as follows:

• Non-taxable gain: $5,036,140.63
• Spousal deduction: $4,743,034.38
• Deduction per child: $2,391,929.54
• Deduction for a disabled child: $4,783,859.09
• Special deduction for employees (Article 30 c) approx. 1): $17,626,492.21
• Special deduction for young professionals and entrepreneurs: $20,144,562.53
• Special deduction (Art. 30 c) approx. 2): $24,173,475.03

These amounts represent the amounts that are deducted from gross income before tax is calculated, so that the taxpayer can only pay on the net profit.

Lower salary limits for earnings in 2026: At what salary do I have to pay the tax?

From January 2026, the minimum wage above which employees pay income tax will be significantly increased. The new apartments, differentiated according to each taxpayer’s family situation, would look like this:

Single without children

• Net Salary: $2,636,979
• Gross Salary: $3,177,083

Single with 1 child

• Net Salary: $2,852,917
• Gross Salary: $3,437,250

Single with 2 children

• Net Salary: $3,500,732
• Gross Salary: $4,217,749

Married without children

• Net Salary: $3,065,170
• Gross Salary: $3,692,976

Married, 1 child

• Net Salary: $3,281,108
• Gross Salary: $3,953,142

Married, 2 children

• Net Salary: $3,928,922
• Gross Salary: $4,733,641

These amounts are intended as a general reference since the monthly billing may vary depending on the cumulative deductions, the deductible expenses and the progressive rates applied in each individual case.

What deductions can be made from income tax?

Income tax is one of the most important taxes in the Argentine tax system. It affects both employees and freelancers as well as companies and is calculated on the basis of the income received.

For employees, the tax is automatically deducted through monthly withholdings made by the employer or paying entity.

The law provides for a number of deductions that make it possible to reduce the tax base and therefore the final amount of the tax. The most important include:

• Tax-free minimum amount: Fixed amount that every taxpayer can deduct from their income.
• Special deduction: applies to employees, self-employed people and pensioners.
• Family responsibilities: Spouse and/or children under 18 or unable to work.
• Other deductible costs (with legal limits):
• Social work contributions and prepaid medicine.
• Mandatory pension contributions.
• Interest on mortgage loans for housing construction.
• Apartment rental if you are not an owner.
• Private life and pension insurance.
• Donations to authorized organizations.
• Expenses for education and daycare.
• Salaries and contributions of registered domestic staff.

In this way, the tax is not levied on the entire gross income, but on the net income obtained after deducting all such deductions.