Costa Rica Tax Calculator (2026)
Income tax rates and take-home pay for Costa Rica
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Costa Rica Income Tax Brackets (2026)
| Bracket | Income Range | Rate |
|---|---|---|
| First bracket | CRC 0 - CRC 4,094,000 | 0.0% |
| Second bracket | CRC 4,094,000 - CRC 6,115,000 | 10.0% |
| Third bracket | CRC 6,115,000 - CRC 10,200,000 | 15.0% |
| Fourth bracket | CRC 10,200,000 - CRC 20,442,000 | 20.0% |
| Fifth bracket | CRC 20,442,000+ | 25.0% |
Social Security Contribution (Employee)
| Bracket | Income Range | Rate |
|---|---|---|
| Employee portion 2026-2028 | CRC 0+ | 4.3% |
Key Facts
Tax Year
2026
Currency
CRC
Top Rate
25.0%
Brackets
5 brackets
Tax-Free Threshold
CRC 4,094,000
Social Contributions
1 item
Assumptions
- · Model assumes employed individual (not self-employed) receiving salary income.
- · Self-employed individuals may deduct up to 25% of gross income; this model applies standard employment tax brackets only.
- · Social security contribution rate of 4.33% applies from 2026-2028 (employee portion).
- · Personal tax credits (spouse, children) are not included as the default person is single with no dependents.
- · No local/municipal income taxes apply in Costa Rica.
- · VAT, property tax, and other consumption taxes are excluded as they do not affect employment salary comparisons.
- · Withholding tax rates are informational only; they apply to specific income types not typical employment salary.
Frequently asked questions
How much income tax do I pay as an employee in Costa Rica?
Costa Rica uses a progressive tax system with five income tax brackets. Your first 4,094,000 CRC is tax-free, then rates increase from 10% to 25% as your income rises, with the highest earners paying 25% on income above 20,442,000 CRC. The exact amount you owe depends on which bracket your total income falls into.
What is the social security contribution rate for employees in Costa Rica?
Employees in Costa Rica pay a social security contribution of 4.33% on their gross income, which is deductible from your taxable income. This contribution funds the country's social security system and is separate from income tax.
Do I pay local or municipal taxes on top of national income tax?
No, Costa Rica does not have local or municipal income taxes. You only pay national income tax and the social security contribution, making the tax system relatively straightforward for employees.
Can I deduct business expenses if I'm self-employed in Costa Rica?
Self-employed individuals can deduct up to 25% of their gross income as a standard deduction, though this calculator focuses on employed individuals using standard employment tax brackets. If you're self-employed, you may want to consult a local tax advisor for specific deduction rules.
What is the tax-free threshold in Costa Rica?
The first 4,094,000 CRC of annual income is completely tax-free in Costa Rica. This means you don't pay any income tax until your earnings exceed this amount, though you still pay the 4.33% social security contribution on all income.
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