OCDE - Taxing Wages 2026 Colombia

Taxing Wages 2026: Colombia @)) OECDTaxing Wages - Colombia Tax on labour income The tax wedge is a measure of the tax on labour income, which includes the tax paid by both the employee and the employer.

TAX WEDGE ON LABOUR INCOME

(Personal income tax + employee and employer social security contributions (SSCs)) — Family Benefits Total labour costs (gross wages + employer SSCs) Single worker earning the average wage The tax wedge for the average single worker in Colombia remained unchanged at 0.0% in 2024 and 2025. The OECD » average tax wedge in 2025 was 35.1% (2024, 34.9%). In 2025, Colombia had the lowest tax wedge among the 38 OECD member countries, occupying the same position as 2024. In Colombia, the single worker at the average wage level did not pay personal income taxes in 2025, whereas their contributions to pension, health and employment risk insurances are considered to be non-tax compulsory payments (NTCPs) and therefore are not counted as taxes in the Taxing Wages calculations. Please refer to the NTCP report (https://www.oecd.org/content/damioecd/en/topics/policy-issues/tax-policy/non-tax-compuisory-payments.pdf).

Average tax wedge: average single worker, no children @ Employer SSC O Employee SSC @ Cash transfers OlIncome tax < Average tax wedge

OECD Avg, 35.1

10 FLES TFFE S FSTHESTFEELF TS S F P S FE S EFFG P Due to rounding, the sum of the change in the tax wedge between years may differ by one-hundredth of a percentage point. Access the data on the OECD Data Explorer: htips:/idata-explorer.oecd.org/s/46i One-earner married couple with two children The tax wedge for a worker with children may be lower than for a worker on the same income without children, since most OECD countries provide benefits to families with children through cash transfers and preferential tax provisions.

One-earner married couple with two children The tax wedge for a worker with children may be lower than for a worker on the same income without children, since most OECD countries provide benefits to families with children through cash transfers and preferential tax provisions. Colombia had thelowest tax wedge in the OECD for an average married worker with two children at -4.8% in 2025, which compares with the OECD average of 26.2%. The country occupied the same position in 2024. Child related benefits and tax provisions tend to reduce the tax wedge for workers with children compared with the average » single worker. In Colombia in 2025, this reduction (4.8 percentage points) was less than the OECD average (8.9 percentage points). Taxing Wages 2026: Colombia © OECD 2026Average tax wedge: One-eamer married couple at average eamings, 2 children @ Employer SSC OEmployee SSC ® Cash transfers OlIncome tax < Average tax wedge

OECD Avg, 26.2

SESEEPESP TSI IFSFTF L S LS LFG S P IF ¢ S Pfads” Access the data on the OECD Data Explorer: htips:/data-explorer.oecd.org/s/46] Tax wedge trends between 2000 and 2025 In Colombia, the tax wedge for the average single worker remained at 0.0% between 2000 and 2025. During the same period, the average tax wedge across the OECD decreased by 1 percentage points from 36.1% to 35.1%. Between 2015 and 2025, the tax wedge for the average single workerhas been steady at 0.0% in Colombia. During this same period, the tax wedge for the average single worker across the OECD decreased by 0.1 percentage points from 35.2% to 35.1% Average tax wedge over time for a single worker earning the average wage 5" 40 359 357 356 356 354 354 354 U9 349 350 351 352 351 350 349 48 347 348 349

35.2% to 35.1% Average tax wedge over time for a single worker earning the average wage 5" 40 359 357 356 356 354 354 354 U9 349 350 351 352 351 350 349 48 347 348 349

B A A M A AT U L SR e i G e e A 00351

30 % 2 51 00 00 00 00 00 00 00 00 00 00 00 00 00 00 [EH] 00 00 00 00 00 00 00 00 0O R L N N Access the data on the OECD Data Explorer: htfps:/idata-explorer.oecd.org/s/46n Taxing Wages 2026: Colombia © OECD 2026Employee tax on labour income The employee net average tax rate is a measure of the net tax on labour income paid directly by the employee

EMPLOYEE NET AVERAGE TAX RATE

(Employee personal income tax and employee social security contributions) — Family Benefits Gross wages In Colombia, the average single worker faced a net average tax rate of 0.0% in 2025 (the lowest among OECD countries), » compared with the OECD average of 25.1%. In other words, in Colombia the take-home pay of an average single worker, after tax and benefits, was 100.0% of their gross wage, compared with the OECD average of 74.9% Taking into account child related benefits and tax provisions, the employee net average tax rate for an average married worker with two children in Colombia was 4.8% in 2025, which is the lowest in the OECD, and compares with 14.7% for the OECD average. This means that an average maried worker with two children in Colombia had a take-home pay, after tax and family benefits, of 104.8% of their gross wage, compared to 85.3% for the OECD average. Employee net average tax rate % ® Single worker < One-eamer married couple, 2 children 50 40

tax and family benefits, of 104.8% of their gross wage, compared to 85.3% for the OECD average. Employee net average tax rate % ® Single worker < One-eamer married couple, 2 children 50 40 30 20 I,l Married, 147 o 1%, dl PP TSI T S CEES CF T F CE ST S EFPF S FFOFEL P& Access the data on the OECD Data Explorer: htfps:/idata-explorer.oecd. org/s/460 -10

For further information: Taxing Wages 2026

Kurt Van Dender Alexander Pick Edoardo Magali Centre for Tax Policy and Administration Centre for Tax Policy and Administration Centre for Tax Policy and Administration Head, Tax Policy and Stafistics Division Head, Tax Data & Stafistical Analysis Unit Statistician/Junior Analyst Kurt VanDender@oecd.org Alexander Pick@oecd.org Edoardo. Magalini@oecd.org Taxing Wages 2026: Colombia © OECD 2026This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessaril reflect the official views of the Member countries of the OECD. This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any teritory, to the delimitation of intemational frontiers and boundaries and to the name of any territory, city or area. The statistical data for Israel are supplied by and under the responsibilty of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the tems of interational law. The full book is available in English: OECD (2026), Taxing Wages 2026: The Progressivity of Labour Taxation in OECD Countries, OECD Publishing, Paris, hitps://doi.org/10.1787/3a5169ef-en

© OECD 2026

The full book is available in English: OECD (2026), Taxing Wages 2026: The Progressivity of Labour Taxation in OECD Countries, OECD Publishing, Paris, hitps://doi.org/10.1787/3a5169ef-en

© OECD 2026

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