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 is the top income tax rate in Puerto Rico?
The highest marginal income tax rate in Puerto Rico is 0.3%. Your effective tax rate will be lower depending on your income level.
How many tax brackets does Puerto Rico have?
Puerto Rico has 5 income tax brackets. Income is taxed in brackets - you only pay the higher rate on income above each threshold, not on your entire income.
How is take-home pay calculated in Puerto Rico?
Take-home pay in Puerto Rico is your gross salary minus income tax, social contributions, and any applicable surcharges. Use the calculator above to see an exact breakdown for your salary.
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