What is Puerto Rico Income Tax
Puerto Rico income tax is a progressive tax system that applies to residents and certain non-residents earning income in Puerto Rico. The tax rates range from 0% to 33%, depending on income levels. Residents are taxed on worldwide income, while non-residents are only taxed on Puerto Rico-sourced income. The system includes various deductions, exemptions, and additional considerations such as Social Security and Medicare contributions.
How to Calculate Puerto Rico Income Tax
Step 1
Enter your annual salary in USD in the designated input field. Make sure to include your total gross income before any deductions.
Step 2
Select your residency status from the dropdown menu. Choose “Puerto Rico Resident” if you have been present in Puerto Rico for at least 183 days during the calendar year.
Step 3
Click the calculate button to generate your tax breakdown. The calculator will process your information using Puerto Rico’s progressive tax brackets.
Step 4
Review your results, which include your gross income, Puerto Rico income tax, Social Security contributions, Medicare deductions, total tax liability, and final take-home pay.
Step 5
Examine the calculation breakdown provided below the results to understand how each component of your tax was determined, including the application of different tax brackets and contribution rates.