How to Calculate Monotributo in Argentina: Complete Guide 2026

Monotributo is Argentina's simplified tax regime administered by AFIP (Federal Administration of Public Revenue), now integrated into ARCA. Created under Law 24,977, it allows small taxpayers to fulfill their tax obligations through a single fixed monthly payment that includes three components: tax, social security (retirement), and health insurance.

Unlike the general tax regime, where VAT, Income Tax, retirement contributions, and health insurance are settled separately, Monotributo unifies everything into one payment. This makes it the most accessible option for freelancers, professionals, small merchants, service providers, and entrepreneurs who do not exceed certain billing thresholds.

To register, you need a CUIT (tax ID number) and a Level 2 or higher Tax Key. Registration is done online through the ARCA (formerly AFIP) portal. Once registered, the taxpayer must issue type C invoices and pay their installment before the 20th of each month. Enrollment is voluntary as long as the requirements for each category are met.

The regime includes 11 categories (A through K) determined by gross annual income, premises area used for the activity, electricity consumption, rent amounts, and number of employees. Each category has a maximum threshold and a different payment amount. You can verify your payment with our Monotributo calculator.

Monotributo categories are updated twice a year in January and July, following the retirement mobility index. Below is the category table with current gross annual income caps for the 2025/2026 period:

Category	Gross annual income (cap)	Activities
A	ARS 2,108,288.01	Services and trade
B	ARS 3,133,941.63	Services and trade
C	ARS 4,387,518.23	Services and trade
D	ARS 5,449,094.55	Services and trade
E	ARS 6,416,528.72	Services and trade
F	ARS 8,020,660.90	Services and trade
G	ARS 9,624,793.05	Services and trade
H	ARS 11,916,410.45	Services and trade
I	ARS 13,337,213.22	Trade only
J	ARS 15,285,088.04	Trade only
K	ARS 16,957,968.71	Trade only

Important note: Categories I, J, and K apply only to trade activities (product sales). Service providers have category H as their maximum. Exceeding these limits requires the taxpayer to switch to the general regime (registered taxpayer).

Besides gross income, other parameters determine the category: premises area (up to 200 m2), annual electricity consumption (up to 20,000 kW), accrued rent amounts, and the number of dependent employees (up to 5). If any parameter is exceeded, the taxpayer must adopt the category corresponding to the highest parameter.

The Monotributo monthly payment consists of three parts, each with a different purpose:

1. Tax component:

Replaces the payment of VAT and Income Tax. The amount varies by category and whether the activity is services or trade. For the lowest categories (A and B), the tax component is significantly lower than for higher ones. In category A, this component is $0 for services.

2. Social security component (retirement contributions):

Corresponds to the contribution to SIPA (Argentine Integrated Social Security System). It is a fixed amount that replaces the contribution an employee would make through their employer. This component is the same across all categories.

3. Health insurance:

This is the contribution to the health system. It allows the Monotributo taxpayer and their family to access a health insurance provider. The base amount covers the holder; adding family members has an additional cost per person.

Category	Tax (services)	Tax (trade)	Social security	Health insurance	Total services	Total trade
A	ARS 0	ARS 0	ARS 11,622.24	ARS 14,716.41	ARS 26,338.65	ARS 26,338.65
B	ARS 903.47	ARS 903.47	ARS 12,789.40	ARS 14,716.41	ARS 28,409.28	ARS 28,409.28
C	ARS 1,550.94	ARS 1,405.32	ARS 14,086.35	ARS 14,716.41	ARS 30,353.70	ARS 30,208.08
D	ARS 2,543.42	ARS 2,284.64	ARS 15,510.78	ARS 14,716.41	ARS 32,770.61	ARS 32,511.83
E	ARS 4,044.65	ARS 3,143.04	ARS 17,073.01	ARS 14,716.41	ARS 35,834.07	ARS 34,932.46
F	ARS 5,765.59	ARS 3,952.16	ARS 18,790.58	ARS 14,716.41	ARS 39,272.58	ARS 37,459.15
G	ARS 8,099.64	ARS 4,952.18	ARS 20,680.81	ARS 14,716.41	ARS 43,496.86	ARS 40,349.40
H	ARS 16,619.55	ARS 12,741.60	ARS 22,762.16	ARS 14,716.41	ARS 54,098.12	ARS 50,220.17

Values are adjusted periodically. Category A has no tax component, making it the most affordable option for those just starting an activity or with low income. To calculate the exact breakdown of your payment, use our Monotributo calculator.

Monotributo is intended for the following people:

• Independent and self-employed workers who provide services or sell products
• Professionals (lawyers, accountants, designers, programmers, doctors, etc.) working on their own
• Small merchants with physical stores or online sales
• Members of worker cooperatives
• Undivided estates that continue the deceased's activity

Requirements for enrollment:

• Be a natural person over 18 years old (or an emancipated minor)
• Have a CUIT (tax ID) and Tax Key
• Not exceed the gross annual income caps of category K (ARS 16,957,968.71 for trade) or H (ARS 11,916,410.45 for services)
• Not perform more than 3 simultaneous activities or own more than 3 business units
• Not have imported goods or services in the last 12 months
• Unit sale price must not exceed ARS 180,589.67

Monotributo taxpayer obligations:

• Pay the monthly installment before the 20th of each month
• Issue electronic type C invoices through the ARCA portal
• Display the registration certificate and category at the workplace
• Recategorize in January and July if parameters change
• Comply with the Electronic Credit Invoice Regime when applicable

Failure to pay the installment can result in compensatory interest, exclusion from the regime, and loss of health insurance after certain months of arrears. It is essential to keep payments current to avoid losing benefits.

Recategorization is the process by which the Monotributo taxpayer evaluates whether they need to change categories based on their income and parameters from the last 12 months. It occurs twice a year:

• January: Evaluates the July to December period of the previous year
• July: Evaluates the January to June period of the current year

Step-by-step procedure:

• Step 1: Log into the ARCA portal with your CUIT and Tax Key
• Step 2: Access the "Monotributo" service in the menu
• Step 3: Select "Recategorization"
• Step 4: Verify the gross income accumulated over the last 12 months
• Step 5: The system will suggest the corresponding category
• Step 6: Confirm the recategorization

What happens if I do not recategorize?

If the taxpayer does not recategorize on time, ARCA may recategorize them automatically based on electronic invoicing data. Additionally, if recategorization was required but not performed, the taxpayer must pay the payment difference with interest from the date the category change should have occurred.

Exclusion from the regime:

If gross annual income exceeds the category K cap (trade) or H (services), the taxpayer is excluded from Monotributo and must register as a general regime taxpayer. This means filing VAT, Income Tax, and social security contributions separately. Exclusion also applies if other parameters are exceeded (premises area, electricity, rent).

To monitor whether you are in the correct category, use our Monotributo calculator by entering your income from the last 12 months.

Social Monotributo is a variant of the regime designed for people in economically vulnerable situations. It was created to formalize productive activities for those with lower incomes who cannot afford the regular Monotributo payment.

Social Monotributo benefits:

• The tax component is $0
• Only 50% of the health insurance component is paid
• Access to the health system for the holder and their family
• Full retirement contributions that count toward pension
• Ability to issue invoices and work formally
• Eligibility to be government suppliers (government purchases must reserve a percentage for Social Monotributo taxpayers)

Who can register:

• People over 18 in a socially vulnerable situation
• Who perform a single economic activity
• Whose income does not exceed the equivalent of general Monotributo category A
• Who are not university professionals practicing their profession
• Who do not have more than one business unit

Process: Registration is done through the National Registry of Local Development and Social Economy Agents (REDLES) under the Ministry of Social Development. You need a national ID, CUIL (labor ID), proof of address, and a sworn statement about the activity.

This regime is fundamental for formalizing the popular economy and allows low-income entrepreneurs to access the same benefits as any Monotributo taxpayer: health insurance, retirement contributions, and the ability to invoice legally.

Choosing between Monotributo and the General Regime (Registered Taxpayer / Responsable Inscripto) is a crucial decision for any independent worker in Argentina. Here are the main differences:

Aspect	Monotributo	Registered Taxpayer
Payment	Fixed monthly installment	VAT + Income Tax + contributions separately
VAT	Does not itemize VAT on invoices	Itemizes VAT (21%) and files monthly
Income Tax	Included in the installment	Annual tax return + advance payments
Invoice	Type C	Type A and B
Accounting	Simplified	Mandatory accounting books
Income cap	ARS 16,957,968.71/year (cat. K)	No cap
Tax credit	Does not generate VAT tax credit	Generates VAT tax credit

When Monotributo is the better choice:

• Income within the regime's limits
• Clients are end consumers (they do not need tax credits)
• Administrative simplicity is preferred
• No need to itemize VAT

When being a Registered Taxpayer is better:

• Income exceeds Monotributo caps
• Clients are businesses (they need type A invoices with itemized VAT)
• Significant input VAT to offset (investments, supply purchases)
• Need to deduct expenses against Income Tax

A common mistake is staying in Monotributo after exceeding the caps. This can lead to automatic exclusion with retroactive effect, interest, and penalties. Use our Monotributo calculator to evaluate if you are in the correct category and our Argentina net salary calculator to compare scenarios.

Properly managing Monotributo requires organization. Here are practical tips to optimize your tax situation:

1. Keep a monthly record of your income:

Although you are not required to keep accounting books, it is essential to record all your income to know which category you belong to. A simple spreadsheet with date, client, description, and amount is sufficient. This will prevent surprises during recategorization.

2. Schedule your payment:

Set up automatic debit from your bank account or credit card to avoid forgetting the monthly payment. The due date is the 20th of each month. Automatic debit payments may receive a small discount.

3. Set aside a percentage for Gross Income Tax:

The national Monotributo does not include Gross Income Tax (Ingresos Brutos), which is a provincial tax. Depending on the province and activity, the rate varies between 1.5% and 5%. Some provinces offer a simplified Gross Income Tax regime for Monotributo taxpayers.

4. Keep all purchase invoices:

Although Monotributo taxpayers cannot deduct VAT or expenses against Income Tax, purchase invoices serve as backup during an ARCA audit. They are also useful if you eventually switch to the general regime.

5. Periodically evaluate whether the regime is still beneficial:

As your billing grows, switching to Registered Taxpayer may be more advantageous. Do the math: if your clients are businesses that need tax credits, being on Monotributo generates an additional cost for them that may cause them to prefer another supplier.

Useful NexTools for Monotributo taxpayers:

• Monotributo calculator: calculate your monthly payment and verify your category
• Argentina net salary calculator: compare net income under different scenarios
• Blue dollar converter: check the dollar exchange rate for your conversions