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 will I pay as an employee in Costa Rica?
Costa Rica uses a progressive tax system with five income brackets ranging from 0% to 25%. The first bracket up to 4,094,000 CRC is tax-free, but income above that is taxed at increasing rates, with the highest earners paying 25% on income over 20,442,000 CRC. Your actual tax depends on where your total salary falls within these brackets.
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 taxable income. This employee portion applies to all salary income and helps fund the country's social security system.
Do I pay local or state income taxes in Costa Rica?
No, Costa Rica has no local or municipal income taxes. The only income tax you pay is the national progressive income tax based on the five federal brackets, plus the 4.33% social security contribution.
Can I deduct expenses from my income if I'm self-employed in Costa Rica?
Self-employed individuals in Costa Rica can deduct up to 25% of their gross income as business expenses, which differs from the standard employment tax brackets used for salaried employees. If you're considering self-employment, you may want to consult a local tax advisor to understand how this deduction applies to your specific situation.
At what income level do I start paying income tax in Costa Rica?
You begin paying income tax once your annual income exceeds 4,094,000 CRC, which is the upper limit of the first tax bracket. Income up to this amount is tax-free, though you still pay the 4.33% social security contribution on all salary income.
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