Puerto Rico Tax Calculator (2026)
Income tax rates and take-home pay for Puerto Rico
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 is the income tax rate in Puerto Rico for residents?
Puerto Rico uses a progressive tax system with five income tax brackets ranging from 0% on the first USD 9,000 to 33% on income above USD 61,500. After calculating your income tax, you'll also pay the Alternate Basic Tax (ABT) as a surcharge, which ranges from 1% to 24% depending on your income level, plus a tax rate reduction that 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.
Do I have to pay US Social Security and Medicare taxes if I work in Puerto Rico?
Yes, as a Puerto Rico resident employee, you are subject to both US Social Security (OASDI) at 6.2% and Medicare (HI) at 1.45% on your gross income, capped at USD 168,600 for Social Security and with an additional 0.9% Medicare tax on income above USD 200,000. Additionally, you'll pay Puerto Rico-specific employment taxes: a 0.6% disability benefits tax and a 0.75% employment security tax on your gross income.
What deductions can I claim on my Puerto Rico tax return?
Puerto Rico does not have a standard deduction like the US federal system; instead, you receive a personal exemption of USD 3,500 that is deducted from your gross income before calculating your tax liability. The tax model assumes standard W-2 employees without major itemized deductions, though certain deductions like charitable contributions, medical expenses, and mortgage interest may be available depending on your individual circumstances.
Are there any special tax breaks for people who relocate to Puerto Rico?
Yes, Puerto Rico offers Act 60 provisions that can provide significant tax benefits for eligible residents and investors, though the standard tax calculator models a typical W-2 employee without these special exemptions. If you qualify as an investor or have other income sources beyond employment, you may be eligible for Act 22 investor exemptions or Act 257 earned income credits, which would require a more detailed analysis of your specific situation.
How much will I take home after taxes and contributions as a Puerto Rico resident?
Your take-home pay depends on your gross income, but you'll pay Puerto Rico income tax (after the personal exemption and surcharges), plus mandatory US Social Security and Medicare withholding, plus Puerto Rico disability and employment security taxes. Use the take-home pay calculator on this page to see your exact net income based on your specific salary, as the progressive tax brackets and multiple surcharges create different effective tax rates at different income levels.
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