Tax in Puerto Rico
Last reviewed: · by TaxProsRated editorial
TL;DR
Puerto Rico's Departamento de Hacienda administers personal income tax at progressive 0/7/14/25/33 percent across five bands (separate from US federal income tax for bona fide residents under IRC §933), corporate income tax at progressive 18.5/25 percent, and IVU (Sales and Use Tax) at 11.5 percent. Puerto Rico is a US Commonwealth.
Tax authority
Departamento de Hacienda under the Government of Puerto Rico [SC1]. Substantive law: Código de Rentas Internas (Internal Revenue Code, Act 1-2011 as amended); IVU under Act 117-2006.
Filing framework
Individual annual returns due 15 April. Corporate annual returns due 15 April. IVU monthly.
Residency
US citizens domiciled in Puerto Rico are bona fide residents under IRC §933 — exempt from US federal income tax on Puerto Rico-source income but subject to Puerto Rico tax. The 'bona fide resident' test requires presence and tax-home plus closer-connection criteria [SC2].
Personal income tax
Five bands: 0 percent up to USD 9,000; 7 percent on USD 9,001-25,000; 14 percent on USD 25,001-41,500; 25 percent on USD 41,501-61,500; 33 percent above. Plus Alternate Basic Tax 1-24 percent at higher incomes (parallel calculation).
Corporate tax
Progressive: 18.5 percent base normal tax + surtax 5-19 percent on net income above USD 25,000 threshold. Combined effective rates 18.5-37.5 percent. Special incentive frameworks: Act 60-2019 (consolidating prior Acts 20/22/27/73) provides preferential rates for export services (4 percent) and individual investors (0 percent on Puerto Rico-source dividends/interest/cap gains). Pillar Two implementation pending.
Indirect tax
IVU 11.5 percent (state 10.5 percent + municipal 1 percent) [SC3]. B2B services subject to 4 percent. Specific categories under reduced or zero rates.
Cryptoassets
No dedicated Puerto Rico framework. Act 60 individual-investor framework applies on Puerto Rico-source cryptoasset gains for qualifying decree holders.
Treaties
Puerto Rico is not a separate treaty jurisdiction; covered by US treaties only for non-bona-fide-resident Puerto Rico activity.
Frequently asked
What are the Puerto Rico personal income tax rates?
Five bands: 0 percent up to USD 9,000; 7/14/25/33 percent ascending. Plus Alternate Basic Tax 1-24 percent parallel calculation. US citizens domiciled in PR are bona fide residents under IRC §933 — exempt from US federal income tax on PR-source income.
What is the Act 60 framework?
Act 60-2019 (consolidating prior Acts 20/22/27/73) provides preferential rates: 4 percent export services; 0 percent for individual investors on PR-source dividends/interest/capital gains. Eligibility requires bona fide PR residence and decree-holder status.
What is the Puerto Rico Sales Tax rate?
IVU 11.5 percent (state 10.5 + municipal 1). B2B services 4 percent. Specific categories under reduced or zero rates.
Find a tax pro in Puerto Rico
Browse credentialed pros serving Puerto Rico — filter by specialty, language, and credential type.
Browse the Puerto Rico directorySources
The figures, dates, and rules on this page are sourced from the documents listed below. Where two sources disagree, both are listed.
- Departamento de Hacienda (Puerto Rico) · accessed
- Government of Puerto Rico · accessed
- Government of Puerto Rico · accessed
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Puerto Rico as of May 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.