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 on my salary in Costa Rica?
Costa Rica uses a progressive tax system with five income brackets ranging from 0% to 25%. The first 4,094,000 CRC of annual income is tax-free, and rates increase as your income rises, reaching 25% on income above 20,442,000 CRC. This means lower earners pay no income tax at all, while higher earners pay a graduated rate based on which bracket their income falls into.
Do I have to pay social security contributions as an employee in Costa Rica?
Yes, as an employee in Costa Rica you contribute 4.33% of your gross income to social security. This contribution is deductible from your taxable income, meaning it reduces the amount subject to income tax brackets.
Is there a difference between employed and self-employed taxation in Costa Rica?
Yes, self-employed individuals in Costa Rica can deduct up to 25% of their gross income before applying tax brackets, which is a significant advantage over the standard employment model. The tax data provided covers employed individuals receiving salary income; self-employed workers should consult a local tax professional for accurate calculations.
Are there state or local income taxes in Costa Rica I need to worry about?
No, Costa Rica does not have state, regional, or municipal income taxes. Your tax obligation is only to the national government based on the progressive federal tax brackets.
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. Only income above this threshold is subject to the progressive tax brackets, making it an important consideration for budgeting your take-home pay.
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