iCalculator™ PR: Puerto Rico Tax Calculators
Welcome to iCalculator™ PR, your comprehensive suite of free tax calculators for Puerto Rico. iCalculator™ has provided free tax calculators for Puerto Rico since 2019. Since those early days we have extended our resources for Puerto Rico to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Puerto Rico Tax Calculator and salary calculators within our Puerto Rico tax section are based on the latest tax rates published by the Tax Administration in Puerto Rico. In this dedicated Tax Portal for Puerto Rico you can access:
Puerto Rico Tax Calculator 2024/25
The Puerto Rico Tax Calculator below is for the 2024 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Puerto Rico. This includes calculations for
- Employees in Puerto Rico to calculate their annual salary after tax.
- Employers to calculate their cost of employment for their employees in Puerto Rico.
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Discover Puerto Rico
Puerto Rico, an enchanting island in the Caribbean, is a territory of the United States with a rich tapestry of cultures, breathtaking landscapes, and a dynamic economy. This guide explores the island's location, cultural heritage, and economic sectors, offering insights into its significance in the region.
Puerto Rico is situated in the northeastern Caribbean Sea, east of the Dominican Republic and west of the Virgin Islands. Its strategic position at the eastern gateway of the Caribbean Basin makes it a critical connector between the Caribbean Sea and the Atlantic Ocean. The island's coordinates are approximately 18° 15' N latitude and 66° 30' W longitude, placing it in a tropical climate zone that enjoys year-round warmth and sunshine.
The Dominican Republic, to the west, is Puerto Rico's closest neighbor, with the Mona Passage serving as the aquatic divide between the two. To the east, the Virgin Islands, both the U.S. and British territories, share cultural and historical bonds with Puerto Rico. These geographical proximities have fostered a rich exchange of traditions, music, and culinary flavors, contributing to the island's diverse cultural landscape. Puerto Rico's culture is a vibrant blend of Spanish, African, Taino, and American influences, reflected in its music, dance, festivals, and cuisine. Neighboring country links: Dominican Republic and Virgin Islands.
Puerto Rico's economy is one of the most dynamic in the Caribbean region. It has transitioned from an agriculture-based economy to one that is predominantly services-oriented. Key sectors include manufacturing, primarily pharmaceuticals, electronics, petrochemicals, and textiles; tourism, with the island's beautiful beaches, historical sites, and tropical climate attracting millions of visitors annually; and finance and insurance services.
The manufacturing sector is the backbone of Puerto Rico's economy, contributing significantly to its GDP. The island has become a major hub for pharmaceutical and medical devices manufacturing, thanks to tax incentives and a skilled workforce. Electronics and chemical products are also significant, with numerous international companies operating on the island.
Tourism is another critical component of the economy, capitalizing on Puerto Rico's natural beauty, historical landmarks, and vibrant culture. The sector employs a large portion of the local workforce and is a significant source of revenue. From the historic streets of Old San Juan to the lush El Yunque National Forest, Puerto Rico offers a diverse array of attractions for visitors.
The finance sector, including banking and insurance, plays a pivotal role in Puerto Rico's economy, supporting both local and international business operations. The island's status as a U.S. territory provides a stable legal and regulatory framework, making it an attractive location for financial services.
In conclusion, Puerto Rico stands as a vibrant blend of cultures and a hub of economic activity in the Caribbean. Its strategic location, coupled with a diverse economy and rich cultural heritage, make it a unique place with much to offer both residents and visitors alike.
Tax Overview of Puerto Rico
Puerto Rico offers a unique tax system that is influenced by both its status as a U.S. territory and its own local government regulations. This blend creates a tax structure that is distinct from both the U.S. mainland and other countries, providing both opportunities and complexities for individuals and businesses operating on the island.
The tax system in Puerto Rico comprises various types of taxes, including income tax, sales and use tax (SUT), property tax, and corporate taxes. Unlike the federal tax system in the United States, Puerto Rico has its own tax authority, the Puerto Rico Department of the Treasury, which administers and collects taxes. Individuals and businesses residing or operating in Puerto Rico are subject to local taxation, with specific rules and rates that vary from those on the U.S. mainland.
Income Tax
Residents of Puerto Rico are subject to local income tax on their worldwide income. However, they are generally exempt from U.S. federal income tax on income sourced from within Puerto Rico. This unique aspect of Puerto Rican tax law can offer advantages to residents and businesses, particularly those engaged in activities that qualify for certain tax incentives designed to promote economic development on the island.
Sales and Use Tax (SUT)
The Sales and Use Tax (SUT) is another significant component of Puerto Rico's tax system, applied to the sale of goods and services within the island. The SUT rate in Puerto Rico is set by local legislation, and it applies to most transactions, including imports. The system also includes specific exemptions and reduced rates for certain goods and services, reflecting the government's policy priorities.
Corporate Taxes
Businesses operating in Puerto Rico are subject to corporate taxes on their income, with rates and regulations that differ from those in the U.S. mainland. The island offers various tax incentives and credits designed to attract investment in sectors such as manufacturing, tourism, renewable energy, and film production. These incentives include reduced tax rates, tax credits, and exemptions, making Puerto Rico an attractive destination for business investment and expansion.
Property Taxes
Property taxes in Puerto Rico are levied by municipalities on real estate and certain types of personal property. The system for assessing and collecting property taxes involves both the municipal government and the Puerto Rico Treasury Department, with rates that vary by location and type of property.
Taxation in Puerto Rico is characterized by its unique position as a U.S. territory, offering a blend of opportunities and challenges for taxpayers. The system's complexity and the range of tax incentives available make it crucial for individuals and businesses to stay informed about the latest tax laws and regulations. For detailed information on the current tax rates, tools, and tables, visit our tax hub, a comprehensive resource for the latest tax tools and tax tables tailored to Puerto Rico's taxation landscape.