Puerto Rico Tax Calculator (2026)
Income tax rates and take-home pay for Puerto Rico
Puerto Rico Income Tax Brackets (2024-25)
| Bracket | Income Range | Rate |
|---|---|---|
| Personal Exempt Zone | $0 - $9,000 | 0.0% |
| Bracket 1 | $9,000 - $25,000 | 7.0% |
| Bracket 2 | $25,000 - $41,500 | 14.0% |
| Bracket 3 | $41,500 - $61,500 | 25.0% |
| Bracket 4 | $61,500+ | 33.0% |
Personal allowance: $3,500
US Social Security (OASDI)
| Bracket | Income Range | Rate |
|---|---|---|
| OASDI | $0+ | 6.2% |
Capped at $10,453 per year
US Medicare
| Bracket | Income Range | Rate |
|---|---|---|
| Medicare | $0+ | 1.5% |
PR Disability Insurance (SINOT)
| Bracket | Income Range | Rate |
|---|---|---|
| Disability | $0+ | 0.3% |
Capped at $27 per year
Gradual Adjustment Tax
| Bracket | Income Range | Rate |
|---|---|---|
| Gradual Adjustment | $500,000+ | 5.0% |
Applies when income exceeds $500,000
Additional Medicare Tax
| Bracket | Income Range | Rate |
|---|---|---|
| Additional Medicare | $200,000+ | 0.9% |
Applies when income exceeds $200,000
Key Facts
Tax Year
2024-25
Currency
USD
Top Rate
33.0%
Brackets
5 brackets
Allowance
$3,500
Social Contributions
3 items
Assumptions
- · Worker is assumed to be a Puerto Rico resident for the entire year.
- · Alternate Basic Tax (ABT) is excluded as it does not apply to individuals whose only income source is salaries.
- · The 5% or 8% total tax adjustment (Act 257) is not modeled as a surcharge due to schema constraints (positive rates only), but applies to reduce the final tax liability: 92% of tax if gross income <= 100,000, 95% if > 100,000.
- · Gradual Adjustment Tax for high earners is included as a surcharge on taxable income.
- · US Social Security and Medicare taxes apply as Puerto Rico is covered under the US system.
Frequently asked questions
What is the income tax rate in Puerto Rico?
Puerto Rico uses a progressive tax system with 5 tax brackets ranging from 0% to 33%. Income up to $9,000 is tax-free (Personal Exempt Zone), then rates increase from 7% on income between $9,000 and $25,000, up to 33% on income above $61,500. Additionally, a $3,500 personal allowance reduces your taxable income.
Do I have to pay US Social Security and Medicare taxes in Puerto Rico?
Yes, Puerto Rico residents are covered under the US Social Security and Medicare system. You'll pay 6.2% for Social Security (OASDI) up to a maximum of $10,453.20 annually, plus 1.45% for Medicare with no cap. If your income exceeds $200,000, you'll also pay an additional 0.9% Medicare tax.
What is Act 257 and how does it affect my taxes?
Act 257 provides a tax reduction adjustment that applies to your final tax liability: if your gross income is $100,000 or less, you pay 92% of your calculated tax, and if it's over $100,000, you pay 95%. This is a significant benefit that reduces your overall Puerto Rico income tax burden.
Are there any other local taxes I should know about besides income tax?
In addition to Puerto Rico income tax, you'll also pay PR Disability Insurance (SINOT) at 0.3% of your gross income, with a maximum contribution of $27 annually. This covers disability insurance for Puerto Rico residents and is separate from US Social Security benefits.
Do high earners in Puerto Rico pay extra taxes?
Yes, there is a Gradual Adjustment Tax that applies an additional 5% surcharge on taxable income above $500,000. This surcharge is applied on top of your regular income tax brackets, so high-income earners face a higher effective tax rate.
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