Costa Rica Personal Income Tax
Detailed personal income tax rates and rules for Costa Rica in 2026.
Costa Rica imposes a progressive personal income tax on employment income with five brackets ranging from 0% to 25% (annual amounts). Self-employed individuals and businesses are taxed under separate schedules. Under the territorial system, only Costa Rican-source income is taxable. Foreign-source income is exempt regardless of residency status. Deductions are limited but include a personal credit, dependent credits, and social security contributions. The 2019 tax reform (Law 9635) modernized the tax system, introducing VAT and expanding the tax base.
| Income Range (CRC) | Tax Rate |
|---|---|
| ₡0 – ₡4.6M | 0% |
| ₡4.6M – ₡6.8M | 10% |
| ₡6.8M – ₡11.4M | 15% |
| ₡11.4M – ₡22.8M | 20% |
| ₡22.8M+ | 25% |
Filing Deadline
March 15 (for prior fiscal year)
Residency Rule
Costa Rica considers individuals as tax residents if they stay in the country for more than 183 days in a 12-month period. However, the territorial tax system means that even residents are only taxed on Costa Rican-source income. Foreign-source income is not taxable regardless of residency status.
How Costa Rica Income Tax compares
Costa Rica’s top personal income tax rate of 25% is the 118th highest of 203 countries TaxAtlas tracks, below the global average of 27.7% and North America’s regional average of 24.4%.
