Sales and use tax: 11.5% for tangible personal property and certain services; 4% for business-to-business services and designated services. See Puerto Rico’s individual tax summary for capital gain rates.
Quick rates and dates.
| Personal income tax (PIT) due dates | |
|---|---|
| PIT final payment due date | 15 April |
2
- The income tax system in Puerto Rico is a progressive tax system. This means that your income is split into multiple brackets where lower brackets are taxed at lower rates and higher brackets are taxed at higher rates. Tax rates range from 0% to 33%.
What taxes do Puerto Rico residents pay?
Residents of Puerto Rico are required to pay most types of federal taxes. Specifically, residents of Puerto Rico pay customs taxes, Federal commodity taxes, and all payroll taxes (also known as FICA taxes, which include to (a) Social Security, (b) Medicare, and Unemployment taxes).
How much are taxes in Puerto Rico?
Since Puerto Rico is a commonwealth and an unincorporated territory of the United States, it has a 10.5% sales and use tax rate. Municipal governments also levy a 1% municipal sales and use tax. The U.S. commonwealth generally has two sales tax holidays per year.
Is Puerto Rico good for taxes?
U.S. citizens who become bona fide residents of Puerto Rico can maintain their U.S. citizenship, avoid U.S. federal income tax on capital gains, including U.S.-source capital gains, and avoid paying any income tax on interest and dividends from Puerto Rican sources.
Are taxes free in Puerto Rico?
Puerto Rico source passive income is completely exempt from federal taxation under IRC §933; however, new qualifying residents may even reduce the tax rate on non-Puerto Rico source passive income to 0% (for interest) and 10% (for dividends) by using Puerto Rico investment vehicles.
Can I move to Puerto Rico to avoid taxes?
By moving to Puerto Rico through one of the tax programs – which require you to have NOT lived there in the last fifteen years – you can take advantage of a 4% income tax rate, 0% dividend rate, and 0% capital gains tax rate. You and your business ACTUALLY need to move to Puerto Rico. It has to become your “tax home”.
How can I live in USA tax Free?
With this best case in mind, let’s look at seven ways you can legally earn or receive tax-free income.
- Contribute to a Roth IRA.
- Sell your home.
- Invest in municipal bonds.
- Hold your stocks for the long-term.
- Contribute to a Health Savings Account.
- Receive a gift.
- Rent your home.
Is Puerto Rico safe?
With all that said, Puerto Rico is still one of the safest Caribbean islands, with a lower crime rate than many mainland U.S. cities. Here are our top safety tips for traveling to Puerto Rico: 1. Be careful of your belongings.
Can I live in Puerto Rico as a US citizen?
An Easy Transition for U.S. If you’re a U.S. citizen, this means an easy transition for you. No need for work permits or visas if you decide to relocate. In other words, living in Puerto Rico is almost like living abroad, but without either the paperwork hassle or the immigration concerns.
How much does Puerto Rico pay the US?
Puerto Ricans do pay federal payroll taxes and help fund public programs such as Medicare and Social Security, contributing more than $4 billion annually in federal taxes to the United States.
Does Puerto Rico use the US dollar?
Puerto Rico is a territory of the United States and uses the U.S. dollar.