Puerto Rico Tax Calculator (2026)
Income tax rates and take-home pay for Puerto Rico
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Puerto Rico Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| No tax bracket | $0 - $9,000 | 0.0% |
| 7% bracket | $9,000 - $25,000 | 7.0% |
| 14% bracket | $25,000 - $41,500 | 14.0% |
| 25% bracket | $41,500 - $61,500 | 25.0% |
| 33% bracket | $61,500+ | 33.0% |
Personal allowance: $3,500
Social Security (OASDI)
| Bracket | Income Range | Rate |
|---|---|---|
| Social Security employee rate | $0 - $168,600 | 6.2% |
Capped at $10,449 per year
Medicare (HI)
| Bracket | Income Range | Rate |
|---|---|---|
| Medicare base rate | $0 - $200,000 | 1.5% |
| Medicare additional rate | $200,000+ | 2.4% |
Puerto Rico Disability Benefits Tax
| Bracket | Income Range | Rate |
|---|---|---|
| Disability benefits tax | $0+ | 0.6% |
Puerto Rico Employment Security Tax
| Bracket | Income Range | Rate |
|---|---|---|
| Employment security tax | $0+ | 0.8% |
Alternate Basic Tax (ABT)
| Bracket | Income Range | Rate |
|---|---|---|
| ABT 1% bracket | $25,000 - $50,000 | 1.0% |
| ABT 3% bracket | $50,000 - $75,000 | 3.0% |
| ABT 5% bracket | $75,000 - $150,000 | 5.0% |
| ABT 10% bracket | $150,000 - $250,000 | 10.0% |
| ABT 24% bracket | $250,000+ | 24.0% |
Applies when income exceeds $25,000
Gradual Adjustment Tax (GAT)
| Bracket | Income Range | Rate |
|---|---|---|
| GAT 5% on excess over USD 500,000 | $500,000+ | 5.0% |
Applies when income exceeds $500,000
Tax Rate Reduction (Act 60)
| Bracket | Income Range | Rate |
|---|---|---|
| Reduction to 92% for gross income ≤ USD 100,000 | $0 - $100,000 | 0.0% |
| Reduction to 95% for gross income > USD 100,000 | $100,000+ | 0.0% |
Key Facts
Tax Year
2025
Currency
USD
Top Rate
33.0%
Brackets
5 brackets
Allowance
$3,500
Social Contributions
4 items
Assumptions
- · Model assumes a Puerto Rico resident individual employee with employment income only.
- · Personal exemption of USD 3,500 applied as a deduction from gross income.
- · ABT (Alternate Basic Tax) modeled as a surcharge on regular income tax; computed on ABT taxable income which approximates gross income for employees without significant exempt income add-backs.
- · Gradual adjustment tax (GAT) applies when net taxable income exceeds USD 500,000; modeled as a surcharge with a cap of 33% of exemption plus USD 8,895.
- · Tax Rate Reduction: For taxable years after 31 December 2019, total tax is reduced to 92% of computed tax if gross income ≤ USD 100,000, or 95% if gross income > USD 100,000. This reduction is modeled as a surcharge with negative rate.
- · Self-employed optional tax, Act 132 rental exemptions, Act 22 investor exemptions, and Act 257 Earned Income Credit excluded as model is for standard W-2 employee.
- · US Social Security and Medicare withholding (employee portion) included as separate social contributions.
- · Puerto Rico disability benefits tax and employment security tax included as employee contributions.
- · Itemized deductions (charitable, medical, mortgage interest, education, casualty losses) excluded; model assumes standard employee with no major deductible expenses beyond the personal exemption.
- · No standard deduction exists in Puerto Rico; personal exemption is the primary relief mechanism.
- · Act 60 Act 22 provisions for resident investor exemptions and Act 257 EIC excluded as outside scope of standard resident employee model.
Frequently asked questions
What are the income tax brackets in Puerto Rico?
Puerto Rico has five income tax brackets ranging from 0% to 33%. Income up to USD 9,000 is tax-free, then rates increase progressively: 7% from USD 9,000-25,000, 14% from USD 25,000-41,500, 25% from USD 41,500-61,500, and 33% on income above USD 61,500. You also get a personal exemption of USD 3,500 that reduces your taxable income before these brackets apply.
Do I pay US Social Security and Medicare taxes if I work in Puerto Rico?
Yes, as an employee in Puerto Rico you still pay US Social Security (6.2% up to USD 168,600) and Medicare (1.45% base rate, 2.35% on income over USD 200,000). Additionally, you'll pay Puerto Rico-specific employment taxes including a 0.6% disability benefits tax and 0.75% employment security tax on your gross income.
What's the Alternate Basic Tax (ABT) and do I have to pay it?
The ABT is a surcharge that applies to residents with gross income over USD 25,000, with rates ranging from 1% to 24% depending on income level. It's calculated on your gross income and added on top of your regular income tax, so most employees in Puerto Rico will owe some ABT.
Are there any tax breaks for moving to Puerto Rico?
Yes, Act 60 provides significant tax reductions for eligible residents. The standard tax rate reduction brings your total tax down to 92% of the computed amount if your gross income is USD 100,000 or less, or 95% if it's higher. There are also special provisions for investors and self-employed individuals, though these require meeting specific residency and investment criteria.
How much will I actually take home if I earn USD 50,000 in Puerto Rico?
At USD 50,000 gross income, you'd pay Puerto Rico income tax, ABT surcharge, the standard tax rate reduction (92%), plus US Social Security and Medicare and Puerto Rico employment taxes. The exact take-home depends on all these factors combined, which is why using the tax calculator on this page gives you the most accurate estimate for your specific situation.
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