Caribbean & Atlantic
Puerto Rico: tax at a glance
This US territory runs its own income tax, up to 33%, plus an 11.5% sales tax. Bona fide residents can exclude Puerto Rico-source income from US federal tax, and Act 60 sweetens the deal further, with a 4% business tax and 0%/4% on investment income.
Worldwide (residence-based)
Last verified
Ways to relocate to Puerto Rico
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 33%Progressive up to 33%, plus a gradual adjustment surtax. US citizens living in PR can exclude PR-source income from US federal tax under IRC §933. They still owe US tax on any non-PR income.
- Corporate income
- Up to 37.5% (18.5% normal tax plus graduated surtax)
- Capital gains
- Up to 20% (Act 60 investors: 0% if the decree is obtained by 31 Dec 2026, otherwise 4%)
- VAT / IVU (sales and use tax)
- 11.5%
- Dividends (WHT)
- 15% (Act 60 investors: 0%/4%)
- Interest (WHT)
- 10%
- Royalties (WHT)
- 29%
- Social security (employee)
- 7.65% (US FICA)
- Social security (employer)
- 7.65% (US FICA)
- Wealth tax
- None
- Inheritance / estate
- PR estate and gift tax. US federal estate tax may also apply.
- Property tax
- Municipal property tax (CRIM) on real and personal property
- Other
- US federal payroll taxes apply. Act 60 export-services businesses are taxed at 4%.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
A special regime for new arrivals
Act 60 (Chapter 2 Individual Resident Investor and Chapter 3 Export Services), reformed by Act 38-2026.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.