[{"data":1,"prerenderedAt":1945},["ShallowReactive",2],{"compare-pair-united-states-vs-puerto-rico":3,"compare-united-states-puerto-rico":109},{"kind":4,"page":5},"article",{"id":6,"title":7,"bestForA":8,"bestForB":12,"body":16,"countryA":42,"countryASlug":43,"countryB":44,"countryBSlug":45,"description":22,"excerpt":46,"extension":47,"extraRows":48,"faqs":57,"flagA":67,"flagB":68,"heroImage":69,"lastUpdated":70,"meta":71,"metaDescription":72,"metaTitle":73,"navigation":74,"path":75,"relatedCompares":76,"seo":83,"stem":84,"verdict":85,"winners":89,"__hash__":108},"compare\u002Fcompare\u002Funited-states-vs-puerto-rico.md","United States vs Puerto Rico taxes",[9,10,11],"Businesses that want 21% federal C-corporation tax without Act 60 conditions","People who cannot move their tax home and closer connection to Puerto Rico","Income that will remain U.S.-source after the move",[13,14,15],"U.S. citizens who can satisfy bona fide residence tests","Export-service founders with an approved Act 60 decree","Resident individual investors who meet Act 60 timing rules",{"type":17,"value":18,"toc":38},"minimark",[19,23,26,29,32,35],[20,21,22],"p",{},"Puerto Rico is the relocation that looks international and is not. It is a separate local tax system inside the U.S. framework. Hacienda collects Puerto Rico tax. The IRS still cares about source, bona fide residence, payroll tax, some credits and transfer tax. Treating San Juan like Lisbon is the error.",[20,24,25],{},"The ordinary Puerto Rico individual table is 0% to 33%. Long-term capital gains are generally 20%. Eligible dividends are generally 15%. Ordinary corporations combine an 18.5% normal tax with a surtax that can bring the top marginal rate to 37.5%. IVU sales and use tax is 11.5%. There is no broad net wealth tax. Those are the default numbers, and they are not obviously cheaper than 10% to 37% federal ordinary tax plus a low-tax state.",[20,27,28],{},"The federal overlay is the actual product. A bona fide resident of Puerto Rico generally excludes Puerto Rico-source income from U.S. federal income tax under Section 933. The IRS tests physical presence, tax home and closer connection. Renting an apartment while your family, business headquarters and closer connection remain in Florida is how people fail. In the year of arrival or departure the tests are even easier to miss. U.S.-source income does not become Puerto Rico-source because you changed your mailing address. U.S. government compensation has special rules. FICA payroll taxes can still apply.",[20,30,31],{},"Act 60 sits on top of that, not instead of it. Export services, manufacturing, tourism, finance and resident individual investors can obtain decree-based rates, including a 4% business rate or a local exemption on post-residency capital appreciation recognized before 1 January 2036, with a possible 5% rate on certain pre-residency appreciation after ten years. Those results require eligibility, an application or decree, and continuing compliance. They do not convert a U.S. stock portfolio into Puerto Rico-source property on day one. Keep acquisition dates and valuations.",[20,33,34],{},"Estate and gift analysis can still involve federal rules because Puerto Rico is not a foreign country for all transfer-tax purposes. Municipal property tax, municipal business-license tax and alternative basic tax can apply even when an income-tax incentive is in force.",[20,36,37],{},"If you cannot move your tax home, closer connection and source of income, Puerto Rico is an expensive mainland-plus-Hacienda outcome. If you can, model Section 933, Act 60 conditions and the local 0% to 33% \u002F 20% \u002F 11.5% stack against the 50-state alternative. The territory is adjacent to the U.S. system. It is not outside it.",{"title":39,"searchDepth":40,"depth":40,"links":41},"",2,[],"United States","united-states","Puerto Rico","puerto-rico",null,"md",[49,53],{"label":50,"valueA":51,"valueB":52},"Legal status","50-state federal system plus state tax","U.S. territory with a separate local code; not a foreign country for all federal purposes",{"label":54,"valueA":55,"valueB":56},"Bona fide residence","State residence plus federal worldwide tax","Presence, tax home and closer connection; Section 933 is not automatic",[58,61,64],{"question":59,"answer":60},"Is Puerto Rico a foreign country for U.S. tax?","No. Puerto Rico is a U.S. territory with its own tax system. Section 933 can exclude Puerto Rico-source income for a bona fide resident, but Puerto Rico is not foreign for all federal purposes and the foreign earned income exclusion is the wrong tool.",{"question":62,"answer":63},"Does moving to Puerto Rico stop federal income tax?","Only Puerto Rico-source income of a bona fide resident is generally excluded under Section 933. U.S.-source income, U.S. government pay and a failed residence test can still produce a federal return.",{"question":65,"answer":66},"Is Act 60 automatic if I rent an apartment?","No. Act 60 needs eligibility, usually a decree, reporting and ongoing compliance. Bona fide residence still requires presence, tax home and closer connection, especially in the year of arrival.","🇺🇸","🇵🇷","\u002Fimages\u002Fcorp-card-bg.jpg","September 2026",{},"US vs Puerto Rico tax comparison for 2026. Compare Section 933, Act 60, bona fide residence tests, 0% to 33% local income tax, 21% vs up to 37.5% corporate tax and IVU.","United States vs Puerto Rico taxes (2026): Act 60 and bona fide residence",true,"\u002Fcompare\u002Funited-states-vs-puerto-rico",[77,80],{"title":78,"path":79},"United States vs Portugal","\u002Fcompare\u002Funited-states-vs-portugal",{"title":81,"path":82},"United States vs United Kingdom","\u002Fcompare\u002Funited-states-vs-united-kingdom",{"title":7,"description":22},"compare\u002Funited-states-vs-puerto-rico",[86,87,88],"Puerto Rico has its own code and Hacienda, but it is a U.S. territory. It is not a foreign country for every federal tax purpose. Bona fide residents generally report worldwide income to Puerto Rico and can exclude Puerto Rico-source income from U.S. federal income tax under Section 933. Fail presence, tax-home or closer-connection tests and that exclusion does not apply.","Act 60 is decree-based and activity-specific. It can produce a 4% export-services rate or a capital-gains exemption for a qualifying resident individual investor. It is not the default 0% to 33% individual table or the ordinary corporate system that can reach 37.5%. A move to San Juan does not automatically convert U.S.-source income, U.S. business profits or pre-move gains into Puerto Rico-source tax-free cash.","Choose Puerto Rico only with a real tax home, a closer connection, qualifying source income and, if relevant, an approved decree. Choose a U.S. state when you need the 21% federal C-corporation system without territorial source tests. U.S. citizens who fail bona fide residence can still have a full federal problem.",[90,94,98,101,104],{"taxType":91,"winner":92,"note":93},"Personal income tax","tie","Puerto Rico's statutory individual table is 0% to 33%; U.S. federal ordinary rates are 10% to 37% plus possible state tax. Act 60 and Section 933 can change either side.",{"taxType":95,"winner":96,"note":97},"Corporate tax","A","U.S. C corporations pay 21% federally plus possible state tax; Puerto Rico's ordinary corporate system can reach 37.5%, while Act 60 4% is an incentive result only.",{"taxType":99,"winner":92,"note":100},"Capital gains tax","Puerto Rico's general long-term rate is 20%; U.S. long-term federal rates are 0% to 20%. Act 60 post-residency appreciation can be locally exempt when conditions are met.",{"taxType":102,"winner":96,"note":103},"Sales tax \u002F IVU","The mainland U.S. has no federal VAT and varying state sales tax; Puerto Rico IVU is 11.5% (10.5% plus 1% municipal).",{"taxType":105,"winner":106,"note":107},"Federal overlay","B","A qualifying bona fide resident can exclude Puerto Rico-source income under Section 933; that exclusion is unavailable if bona fide residence fails.","ZMsde-5dXG6lthDqPt-LkFSeZyQhI-dGEcurYIDQn4A",{"a":110,"b":1168},{"index":111,"details":323},{"id":112,"title":113,"bestFor":114,"body":120,"country":42,"countryFacts":227,"countrySlug":43,"description":124,"excerpt":46,"extension":47,"faqs":233,"flag":67,"heroImage":46,"howItWorks":243,"lastUpdated":247,"meta":248,"metaDescription":249,"metaTitle":250,"navigation":74,"otherTaxes":251,"pageType":280,"path":281,"relatedFormations":282,"relatedGuides":283,"seo":284,"stem":285,"summaryCards":286,"taxBracketSections":305,"taxBrackets":306,"taxRates":307,"taxSlug":46,"taxType":46,"visas":316,"watchOut":317,"__hash__":322},"taxes\u002Fcountry\u002Funited-states\u002Findex.md","Taxes in the United States",[115,116,117,118,119],"Employees","Founders","Investors","Expats","Large businesses",{"type":17,"value":121,"toc":224},[122,125,128,133,221],[20,123,124],{},"The United States is a layered tax system, not a flat one. At the federal level, it taxes income, payroll, business profits, capital gains, estates and gifts; then states and cities can stack their own taxes on top.",[20,126,127],{},"That is why the useful question is rarely just \"what is the U.S. tax rate?\" It is usually \"which layer applies to this person, this business and this state?\"",[129,130,132],"h2",{"id":131},"federal-vs-state","Federal vs state",[134,135,136,152],"table",{},[137,138,139],"thead",{},[140,141,142,146,149],"tr",{},[143,144,145],"th",{},"Tax",[143,147,148],{},"Federal rule",[143,150,151],{},"State\u002Flocal reality",[153,154,155,167,177,188,199,210],"tbody",{},[140,156,157,161,164],{},[158,159,160],"td",{},"Income tax",[158,162,163],{},"Progressive rates apply to individuals",[158,165,166],{},"State income tax rules vary widely",[140,168,169,171,174],{},[158,170,95],{},[158,172,173],{},"21% federal C-corp rate",[158,175,176],{},"Additional state corporate or franchise taxes often apply",[140,178,179,182,185],{},[158,180,181],{},"Capital gains and dividends",[158,183,184],{},"Preferential federal treatment for many long-term gains and qualified dividends",[158,186,187],{},"Many states tax them as ordinary income",[140,189,190,193,196],{},[158,191,192],{},"Wealth tax",[158,194,195],{},"No federal net wealth tax",[158,197,198],{},"Local property tax still matters",[140,200,201,204,207],{},[158,202,203],{},"Estate \u002F inheritance",[158,205,206],{},"Federal estate-and-gift tax system",[158,208,209],{},"Some states add estate or inheritance taxes",[140,211,212,215,218],{},[158,213,214],{},"Sales tax",[158,216,217],{},"No federal VAT",[158,219,220],{},"State and local sales taxes are common",[20,222,223],{},"If you are planning around the U.S., start with the federal rule, then check the state where you live, work, own property or run the business.",{"title":39,"searchDepth":40,"depth":40,"links":225},[226],{"id":131,"depth":40,"text":132},{"region":228,"currency":229,"taxTreaties":230,"euBlacklist":231,"fatfStatus":232},"North America","USD","60+","No","Compliant",[234,237,240],{"question":235,"answer":236},"Is the U.S. a high-tax country?","It is not low-tax overall because federal, state and payroll taxes stack. The result depends heavily on where you live and how your income is earned.",{"question":238,"answer":239},"Does the U.S. have a wealth tax or inheritance tax?","No federal wealth tax and no federal inheritance tax. The federal system uses estate and gift taxes instead, and some states add their own transfer taxes.",{"question":241,"answer":242},"Do state taxes matter?","Yes, often a lot. Residence, source rules and local taxes can change the answer completely.",[244,245,246],"The U.S. is not a single-rate tax country. Federal taxes apply nationwide, but states and localities can add their own income, corporate, sales, property and transfer taxes.","U.S. citizens and resident aliens are generally taxed on worldwide income. Nonresident aliens are usually taxed on U.S.-source income and income effectively connected with a U.S. trade or business.","There is no federal net wealth tax and no federal inheritance tax. Instead, the U.S. uses a federal estate-and-gift tax system, and some states add their own estate or inheritance taxes.","May 2026",{},"United States tax overview for residents, expats, founders and investors. Compare federal income tax, corporate tax, capital gains tax, estate tax, wealth tax and state-level variation.","Taxes in the United States: income, corporate, capital gains and estate tax (2026)",[252,255,258,262,265,268,272,276],{"title":160,"slug":253,"icon":254},"income-tax","💼",{"title":192,"slug":256,"icon":257},"wealth-tax","💰",{"title":259,"slug":260,"icon":261},"Inheritance tax","inheritance-tax","🏛️",{"title":99,"slug":263,"icon":264},"capital-gains-tax","📈",{"title":95,"slug":266,"icon":267},"corporate-tax","🏢",{"title":269,"slug":270,"icon":271},"Dividend tax","dividend-tax","💸",{"title":273,"slug":274,"icon":275},"VAT \u002F sales tax","vat-sales-tax","🧾",{"title":277,"slug":278,"icon":279},"Crypto tax","crypto-tax","🪙","country","\u002Fcountry\u002Funited-states",[],[],{"title":113,"description":124},"country\u002Funited-states\u002Findex",[287,290,293,296,300,302],{"label":160,"value":288,"note":289},"10% - 37%","Federal ordinary rates",{"label":95,"value":291,"note":292},"21%","C corps, plus CAMT for large groups",{"label":99,"value":294,"note":295},"0% - 20%","Plus 3.8% NIIT",{"label":297,"value":298,"note":299},"Estate tax","Up to 40%","Federal transfer tax",{"label":192,"value":301,"note":195},"0%",{"label":214,"value":303,"note":304},"Varies","State and local only",[],[],[308,310,311,312,313,314],{"label":160,"value":288,"badge":309},"Federal",{"label":95,"value":291},{"label":99,"value":294},{"label":297,"value":298},{"label":192,"value":301},{"label":214,"value":315},"Varies by state",[],[318,319,320,321],"Federal and state rules can point in different directions. A good federal answer is not always a good state answer.","State and local taxes can change the outcome materially, especially for people who move, own property or run businesses across multiple states.","U.S. citizens and resident aliens are usually taxed on worldwide income even if they live abroad.","Entity choice matters: LLCs, partnerships, S corporations and C corporations are taxed very differently.","JKNDA_OcB0pjtZe29c2-wwnrEY8nqLOKxJRTxaGjbpw",{"income-tax":324,"corporate-tax":471,"capital-gains-tax":611,"dividend-tax":764,"wealth-tax":895,"inheritance-tax":1030},{"id":325,"title":326,"bestFor":327,"body":331,"country":42,"countryFacts":344,"countrySlug":43,"description":335,"excerpt":46,"extension":47,"faqs":345,"flag":67,"heroImage":355,"howItWorks":356,"lastUpdated":247,"meta":363,"metaDescription":364,"metaTitle":365,"navigation":74,"otherTaxes":366,"pageType":374,"path":375,"relatedFormations":376,"relatedGuides":377,"seo":378,"stem":379,"summaryCards":380,"taxBracketSections":394,"taxBrackets":453,"taxRates":454,"taxSlug":253,"taxType":160,"visas":464,"watchOut":465,"__hash__":470},"taxes\u002Fcountry\u002Funited-states\u002Fincome-tax.md","Income tax in the United States",[115,118,328,329,330],"Contractors","High earners","Remote workers",{"type":17,"value":332,"toc":342},[333,336,339],[20,334,335],{},"U.S. income tax starts with the federal progressive schedule, but the real bill is often bigger once payroll tax, state tax and local tax are in the picture.",[20,337,338],{},"The first question is residence. U.S. citizens and resident aliens are generally taxed on worldwide income; nonresident aliens are usually taxed only on U.S.-source income and income effectively connected with a U.S. trade or business.",[20,340,341],{},"If you earn W-2 wages, the payroll layer is usually as important as the bracket rate. If you are self-employed, the equivalent self-employment tax can be just as important as income tax itself.",{"title":39,"searchDepth":40,"depth":40,"links":343},[],{"region":228,"currency":229,"taxTreaties":230,"euBlacklist":231,"fatfStatus":232},[346,349,352],{"question":347,"answer":348},"What is the U.S. income tax rate?","The federal ordinary income tax rate is progressive, from 10% to 37% in 2026, depending on filing status and taxable income.",{"question":350,"answer":351},"Do expats pay U.S. income tax?","U.S. citizens and resident aliens usually do. Nonresident aliens are taxed only on U.S.-source income and income effectively connected with a U.S. trade or business.",{"question":353,"answer":354},"What payroll taxes apply?","Social Security is 6.2% each for employee and employer up to the 2026 wage base, Medicare is 1.45% each with no wage cap, and high earners may also owe Additional Medicare tax.","\u002Fimages\u002Fdelaware.webp",[357,358,359,361,362],"U.S. citizens and resident aliens are generally taxed on worldwide income. Nonresident aliens are usually taxed only on U.S.-source income and income effectively connected with a U.S. trade or business.","For 2026, the standard deduction is $16,100 for single filers and married filing separately, $32,200 for married filing jointly, and $24,150 for heads of household. The ordinary rate schedule still tops out at 37%.",{"The bracket table below shows all 2026 federal filing statuses":360},"single \u002F married filing separately, married filing jointly \u002F surviving spouse, and head of household.","Payroll tax is a separate layer. Social Security is 6.2% each for employee and employer up to the $184,500 wage base in 2026, Medicare is 1.45% each with no wage cap, and Additional Medicare tax is 0.9% on employee wages above $200,000.","State income tax can add a second layer on top of the federal bill, and treaty benefits usually do not solve state tax on their own.",{},"United States income tax guide for 2026. See the 10% to 37% federal brackets, standard deduction, FICA payroll taxes, nonresident rules and state tax notes.","U.S. income tax: rates, brackets, payroll tax and expat rules (2026)",[367,368,369,370,371,372,373],{"title":192,"slug":256,"icon":257},{"title":259,"slug":260,"icon":261},{"title":99,"slug":263,"icon":264},{"title":95,"slug":266,"icon":267},{"title":269,"slug":270,"icon":271},{"title":273,"slug":274,"icon":275},{"title":277,"slug":278,"icon":279},"tax","\u002Fcountry\u002Funited-states\u002Fincome-tax",[],[],{"title":326,"description":335},"country\u002Funited-states\u002Fincome-tax",[381,382,386,390],{"label":91,"value":288,"note":289},{"label":383,"value":384,"note":385},"Standard deduction","$16,100 \u002F $32,200","Single \u002F joint in 2026",{"label":387,"value":388,"note":389},"Social Security","6.2%","Each side, up to cap",{"label":391,"value":392,"note":393},"Medicare","1.45%","Each side, no cap",[395,419,436],{"title":396,"rows":397},"Single and married filing separately",[398,401,404,407,410,413,416],{"band":399,"rate":400},"Up to $12,400","10%",{"band":402,"rate":403},"$12,401 - $50,400","12%",{"band":405,"rate":406},"$50,401 - $105,700","22%",{"band":408,"rate":409},"$105,701 - $201,775","24%",{"band":411,"rate":412},"$201,776 - $256,225","32%",{"band":414,"rate":415},"$256,226 - $384,350","35%",{"band":417,"rate":418},"Over $384,350","37%",{"title":420,"rows":421},"Married filing jointly and surviving spouse",[422,424,426,428,430,432,434],{"band":423,"rate":400},"Up to $24,800",{"band":425,"rate":403},"$24,801 - $100,800",{"band":427,"rate":406},"$100,801 - $211,400",{"band":429,"rate":409},"$211,401 - $403,550",{"band":431,"rate":412},"$403,551 - $512,450",{"band":433,"rate":415},"$512,451 - $768,700",{"band":435,"rate":418},"Over $768,700",{"title":437,"rows":438},"Head of household",[439,441,443,445,447,449,451],{"band":440,"rate":400},"Up to $17,700",{"band":442,"rate":403},"$17,701 - $67,450",{"band":444,"rate":406},"$67,451 - $105,700",{"band":446,"rate":409},"$105,701 - $201,750",{"band":448,"rate":412},"$201,751 - $256,200",{"band":450,"rate":415},"$256,201 - $640,600",{"band":452,"rate":418},"Over $640,600",[],[455,457,458,459,462],{"label":91,"value":288,"badge":456},"Progressive",{"label":387,"value":388},{"label":391,"value":392},{"label":460,"value":461},"Additional Medicare","0.9%",{"label":463,"value":303},"State income tax",[],[466,467,468,469],"Residency matters. U.S. citizens and resident aliens are generally taxed on worldwide income, even if they live abroad.","Nonresident aliens are taxed differently, so source rules and treaty position matter before you assume the federal rate you see on a salary calculator.","State income tax can materially change the result, and some state rules do not mirror federal treaty treatment.","Payroll tax is not optional just because income tax is low. FICA is often a major part of the real tax cost.","DJ3P5yLzKAXDBobfkgb3nuWvtn759VBcBNv-PKU8xiU",{"id":472,"title":473,"bestFor":474,"body":478,"country":42,"countryFacts":554,"countrySlug":43,"description":482,"excerpt":46,"extension":47,"faqs":555,"flag":67,"heroImage":355,"howItWorks":565,"lastUpdated":247,"meta":570,"metaDescription":571,"metaTitle":572,"navigation":74,"otherTaxes":573,"pageType":374,"path":581,"relatedFormations":582,"relatedGuides":583,"seo":584,"stem":585,"summaryCards":586,"taxBracketSections":596,"taxBrackets":597,"taxRates":598,"taxSlug":266,"taxType":95,"visas":604,"watchOut":605,"__hash__":610},"taxes\u002Fcountry\u002Funited-states\u002Fcorporate-tax.md","Corporate tax in the United States",[116,475,476,477,117],"C corporations","Holding companies","MNE groups",{"type":17,"value":479,"toc":551},[480,483,486,490,548],[20,481,482],{},"The federal U.S. corporate tax rate is 21%, but that number only tells part of the story. The effective burden can be higher once state taxes, apportionment rules and minimum-tax exposure are included.",[20,484,485],{},"Just as important, many businesses are not C corporations at all. Partnerships, most LLCs and S corporations are usually taxed at owner level, so entity choice changes the whole analysis.",[129,487,489],{"id":488},"federal-layers","Federal layers",[134,491,492,504],{},[137,493,494],{},[140,495,496,499,501],{},[143,497,498],{},"Layer",[143,500,148],{},[143,502,503],{},"Practical note",[153,505,506,516,527,538],{},[140,507,508,511,513],{},[158,509,510],{},"C corporation income tax",[158,512,291],{},[158,514,515],{},"Standard federal corporate rate",[140,517,518,521,524],{},[158,519,520],{},"CAMT",[158,522,523],{},"15%",[158,525,526],{},"Large corporations with average annual financial statement income above $1 billion",[140,528,529,532,535],{},[158,530,531],{},"Pass-through entities",[158,533,534],{},"Different regime",[158,536,537],{},"Usually taxed at owner level rather than entity level",[140,539,540,543,545],{},[158,541,542],{},"State tax",[158,544,303],{},[158,546,547],{},"May be income tax, franchise tax or another business levy",[20,549,550],{},"For a U.S. business, the right question is usually not \"what is the corporate tax rate?\" It is \"what is the combined federal, state and entity-level burden after all the rules are applied?\"",{"title":39,"searchDepth":40,"depth":40,"links":552},[553],{"id":488,"depth":40,"text":489},{"region":228,"currency":229,"taxTreaties":230,"euBlacklist":231,"fatfStatus":232},[556,559,562],{"question":557,"answer":558},"What is the corporate tax rate in the U.S.?","The federal C-corporation rate is 21%.",{"question":560,"answer":561},"Do LLCs pay U.S. corporate tax?","Usually not at the entity level. Most LLCs are taxed as pass-throughs unless they elect corporate treatment.",{"question":563,"answer":564},"Does the U.S. have a corporate minimum tax?","Yes. Large corporations can fall into the 15% corporate alternative minimum tax regime based on adjusted financial statement income.",[566,567,568,569],"The federal corporate income tax rate is 21% for C corporations. That is the headline rate, but it is not the whole story because state corporate income tax or franchise tax can still apply.","Many U.S. businesses are not taxed as C corporations. Partnerships, most LLCs and S corporations are generally pass-throughs, so the tax is paid at owner level rather than at the entity level.","Large corporations should also check the corporate alternative minimum tax. The IRS says CAMT is a 15% minimum tax on adjusted financial statement income and generally applies to large corporations with average annual financial statement income above $1 billion.","Deductions, depreciation, nexus, apportionment and state filing positions can change the effective rate materially.",{},"United States corporate tax guide for 2026. See the 21% federal rate, 15% CAMT, pass-through treatment, state corporate taxes and planning caveats.","U.S. corporate tax: 21% rate, CAMT and state taxes (2026)",[574,575,576,577,578,579,580],{"title":160,"slug":253,"icon":254},{"title":192,"slug":256,"icon":257},{"title":259,"slug":260,"icon":261},{"title":99,"slug":263,"icon":264},{"title":269,"slug":270,"icon":271},{"title":273,"slug":274,"icon":275},{"title":277,"slug":278,"icon":279},"\u002Fcountry\u002Funited-states\u002Fcorporate-tax",[],[],{"title":473,"description":482},"country\u002Funited-states\u002Fcorporate-tax",[587,588,590,594],{"label":95,"value":291,"note":475},{"label":520,"value":523,"note":589},"Large corporations",{"label":591,"value":592,"note":593},"Pass-throughs","Different","LLCs and S corps",{"label":542,"value":303,"note":595},"Often added on top",[],[],[599,601,602,603],{"label":600,"value":291,"badge":309},"C corporation tax",{"label":520,"value":523},{"label":531,"value":592},{"label":542,"value":303},[],[606,607,608,609],"Do not assume every U.S. entity pays the 21% corporate rate. Entity classification is the first thing to check.","CAMT is a separate minimum-tax layer for large corporations, so a group can have more than one federal corporate tax exposure.","State corporate and franchise taxes can materially change the effective rate and the compliance burden.","International structures need transfer pricing, withholding tax and treaty checks, not just a headline rate.","VG-0G4YOT7918J7EzU9h5QILvDL2nBLBcZurVkXmvY0",{"id":612,"title":613,"bestFor":614,"body":616,"country":42,"countryFacts":704,"countrySlug":43,"description":620,"excerpt":46,"extension":47,"faqs":705,"flag":67,"heroImage":355,"howItWorks":715,"lastUpdated":247,"meta":720,"metaDescription":721,"metaTitle":722,"navigation":74,"otherTaxes":723,"pageType":374,"path":731,"relatedFormations":732,"relatedGuides":733,"seo":734,"stem":735,"summaryCards":736,"taxBracketSections":749,"taxBrackets":750,"taxRates":751,"taxSlug":263,"taxType":99,"visas":757,"watchOut":758,"__hash__":763},"taxes\u002Fcountry\u002Funited-states\u002Fcapital-gains-tax.md","Capital gains tax in the United States",[117,116,329,615,118],"Family offices",{"type":17,"value":617,"toc":701},[618,621,624,628,698],[20,619,620],{},"The U.S. federal system rewards holding period. Short-term gains are usually taxed like wages, while long-term gains and qualified dividends can get preferential rates.",[20,622,623],{},"That preference is useful, but not absolute. High earners can pick up the 3.8% NIIT, and state tax can narrow the gap further.",[129,625,627],{"id":626},"federal-treatment","Federal treatment",[134,629,630,642],{},[137,631,632],{},[140,633,634,637,639],{},[143,635,636],{},"Asset or gain",[143,638,627],{},[143,640,641],{},"Notes",[153,643,644,655,665,676,687],{},[140,645,646,649,652],{},[158,647,648],{},"Long-term capital gains",[158,650,651],{},"0%, 15% or 20%",[158,653,654],{},"Preferential rate depends on taxable income",[140,656,657,660,662],{},[158,658,659],{},"Qualified dividends",[158,661,651],{},[158,663,664],{},"Same rate bands as long-term gains",[140,666,667,670,673],{},[158,668,669],{},"Short-term capital gains",[158,671,672],{},"Ordinary income rates",[158,674,675],{},"Usually taxed up to 37% federally",[140,677,678,681,684],{},[158,679,680],{},"Collectibles \u002F some QSBS gain",[158,682,683],{},"Up to 28%",[158,685,686],{},"Special rate group",[140,688,689,692,695],{},[158,690,691],{},"Investment income for high earners",[158,693,694],{},"+3.8% NIIT",[158,696,697],{},"Applies above statutory thresholds",[20,699,700],{},"If you are investing in U.S. stocks, funds or real estate, the tax result is usually driven by holding period, income level and state of residence rather than the asset label alone.",{"title":39,"searchDepth":40,"depth":40,"links":702},[703],{"id":626,"depth":40,"text":627},{"region":228,"currency":229,"taxTreaties":230,"euBlacklist":231,"fatfStatus":232},[706,709,712],{"question":707,"answer":708},"What is the capital gains tax rate in the U.S.?","Long-term gains are generally taxed at 0%, 15% or 20% federally. Short-term gains are taxed as ordinary income.",{"question":710,"answer":711},"Are dividends taxed like capital gains?","Qualified dividends usually are. They get the same 0%, 15% or 20% federal rate bands as long-term capital gains.",{"question":713,"answer":714},"Do states tax capital gains?","Often yes. Many states tax capital gains the same way they tax ordinary income, so the state layer can be as important as the federal one.",[716,717,718,719],"In the U.S., the key split is between short-term and long-term gains. Short-term gains are usually taxed as ordinary income, while long-term gains and qualified dividends can get lower federal rates.","The 3.8% net investment income tax can apply to interest, dividends, capital gains, rents and similar investment income once income crosses the statutory thresholds.","Not all gains fit the same bucket. Collectibles and some section 1202 qualified small-business stock gains can face up to a 28% federal rate, and some real-estate gains are governed by separate rules.","State treatment still matters. Many states tax gains like ordinary income, so the federal rate is often only the starting point.",{},"United States capital gains tax guide for 2026. See the 0%, 15% and 20% long-term rates, short-term ordinary income treatment, 3.8% NIIT and state tax notes.","U.S. capital gains tax: long-term rates, qualified dividends and NIIT (2026)",[724,725,726,727,728,729,730],{"title":160,"slug":253,"icon":254},{"title":192,"slug":256,"icon":257},{"title":259,"slug":260,"icon":261},{"title":95,"slug":266,"icon":267},{"title":269,"slug":270,"icon":271},{"title":273,"slug":274,"icon":275},{"title":277,"slug":278,"icon":279},"\u002Fcountry\u002Funited-states\u002Fcapital-gains-tax",[],[],{"title":613,"description":620},"country\u002Funited-states\u002Fcapital-gains-tax",[737,740,743,747],{"label":738,"value":294,"note":739},"Long-term gains","Federal preferential rates",{"label":741,"value":288,"note":742},"Short-term gains","Taxed as ordinary income",{"label":744,"value":745,"note":746},"NIIT","3.8%","High-income investors",{"label":659,"value":294,"note":748},"Same as long-term gains",[],[],[752,754,755,756],{"label":648,"value":294,"badge":753},"Preferential",{"label":669,"value":288},{"label":659,"value":294},{"label":744,"value":745},[],[759,760,761,762],"Short-term gains are ordinary income in disguise. Holding period is often the difference between a manageable bill and a high marginal rate.","Qualified dividends only get the lower rate if the holding-period and other IRS rules are met.","The 3.8% NIIT can sit on top of the capital gains rate for higher-income taxpayers.","State law can erase some of the federal advantage because many states do not give special capital-gains treatment.","8vu_NcSrvaw7gU38j3EKx4kTw_ES-k28BoVynmECZYM",{"id":765,"title":766,"bestFor":767,"body":768,"country":42,"countryFacts":840,"countrySlug":43,"description":772,"excerpt":46,"extension":47,"faqs":841,"flag":67,"heroImage":355,"howItWorks":851,"lastUpdated":247,"meta":856,"metaDescription":857,"metaTitle":858,"navigation":74,"otherTaxes":859,"pageType":374,"path":867,"relatedFormations":868,"relatedGuides":869,"seo":870,"stem":871,"summaryCards":872,"taxBracketSections":881,"taxBrackets":882,"taxRates":883,"taxSlug":270,"taxType":269,"visas":888,"watchOut":889,"__hash__":894},"taxes\u002Fcountry\u002Funited-states\u002Fdividend-tax.md","Dividend tax in the United States",[117,116,329,118,615],{"type":17,"value":769,"toc":837},[770,773,776,780,834],[20,771,772],{},"Dividend tax in the U.S. is really a two-bucket system: qualified dividends get preferred treatment, and ordinary dividends do not.",[20,774,775],{},"That sounds simple until you add the holding-period test, the NIIT layer and state tax. Then the real answer becomes very taxpayer-specific.",[129,777,779],{"id":778},"dividend-types","Dividend types",[134,781,782,793],{},[137,783,784],{},[140,785,786,789,791],{},[143,787,788],{},"Dividend type",[143,790,627],{},[143,792,641],{},[153,794,795,805,815,825],{},[140,796,797,800,802],{},[158,798,799],{},"Qualified dividend",[158,801,651],{},[158,803,804],{},"Same bands as long-term capital gains",[140,806,807,810,812],{},[158,808,809],{},"Ordinary dividend",[158,811,672],{},[158,813,814],{},"Taxed like regular income",[140,816,817,820,822],{},[158,818,819],{},"High-income investment income",[158,821,694],{},[158,823,824],{},"Can sit on top of either dividend type",[140,826,827,829,831],{},[158,828,542],{},[158,830,303],{},[158,832,833],{},"Often taxes dividends as ordinary income",[20,835,836],{},"If you hold dividend-paying U.S. stocks, the practical goal is usually not just to earn yield. It is to understand how much of that yield survives after federal, state and withholding taxes.",{"title":39,"searchDepth":40,"depth":40,"links":838},[839],{"id":778,"depth":40,"text":779},{"region":228,"currency":229,"taxTreaties":230,"euBlacklist":231,"fatfStatus":232},[842,845,848],{"question":843,"answer":844},"Are U.S. dividends taxed at 15%?","Sometimes, but not always. Qualified dividends can be taxed at 0%, 15% or 20% federally depending on taxable income.",{"question":846,"answer":847},"What is an ordinary dividend?","It is a dividend taxed as ordinary income rather than at the preferential qualified-dividend rate.",{"question":849,"answer":850},"Do states tax dividends?","Often yes. Many states tax dividends as ordinary income, so the state layer can matter as much as the federal one.",[852,853,854,855],"The most important distinction is between qualified and ordinary dividends. Qualified dividends can get the same federal rate bands as long-term capital gains, while ordinary dividends are taxed as ordinary income.","The IRS also requires a holding period and other qualification rules before a dividend is treated as qualified. If those rules are not met, the dividend is ordinary even if it came from a blue-chip stock.","High-income taxpayers can also owe the 3.8% net investment income tax on dividends.","Foreign dividend planning is separate from U.S. dividend tax. Withholding abroad, treaty relief and the U.S. taxpayer's residence status all matter.",{},"United States dividend tax guide for 2026. See the 0% to 20% qualified dividend rates, ordinary income treatment, 3.8% NIIT and state tax notes.","U.S. dividend tax: qualified dividends, ordinary dividends and NIIT (2026)",[860,861,862,863,864,865,866],{"title":160,"slug":253,"icon":254},{"title":192,"slug":256,"icon":257},{"title":259,"slug":260,"icon":261},{"title":99,"slug":263,"icon":264},{"title":95,"slug":266,"icon":267},{"title":273,"slug":274,"icon":275},{"title":277,"slug":278,"icon":279},"\u002Fcountry\u002Funited-states\u002Fdividend-tax",[],[],{"title":766,"description":772},"country\u002Funited-states\u002Fdividend-tax",[873,875,878,879],{"label":659,"value":294,"note":874},"Preferential federal rates",{"label":876,"value":288,"note":877},"Ordinary dividends","Taxed as income",{"label":744,"value":745,"note":746},{"label":542,"value":303,"note":880},"Often applies too",[],[],[884,885,886,887],{"label":659,"value":294,"badge":753},{"label":876,"value":288},{"label":744,"value":745},{"label":542,"value":303},[],[890,891,892,893],"\"Qualified\" is a technical term. A dividend can look normal but still fail the holding-period test.","Ordinary dividends are not always \"bad\". They are simply taxed under the ordinary income rules.","State tax can still apply even when the federal dividend rate is favorable.","Foreign withholding can reduce the cash you receive before the U.S. tax question is even asked.","WDishuVmKWzAFuPBu5PRXdKGZ9H1xWqEYah3SOqIerA",{"id":896,"title":897,"bestFor":898,"body":900,"country":42,"countryFacts":976,"countrySlug":43,"description":904,"excerpt":46,"extension":47,"faqs":977,"flag":67,"heroImage":355,"howItWorks":987,"lastUpdated":247,"meta":992,"metaDescription":993,"metaTitle":994,"navigation":74,"otherTaxes":995,"pageType":374,"path":1003,"relatedFormations":1004,"relatedGuides":1005,"seo":1006,"stem":1007,"summaryCards":1008,"taxBracketSections":1016,"taxBrackets":1017,"taxRates":1018,"taxSlug":256,"taxType":192,"visas":1023,"watchOut":1024,"__hash__":1029},"taxes\u002Fcountry\u002Funited-states\u002Fwealth-tax.md","Wealth tax in the United States",[117,615,329,118,899],"Property owners",{"type":17,"value":901,"toc":973},[902,905,908,912,970],[20,903,904],{},"The U.S. does not levy a federal wealth tax. That is the clean answer, and it is why people looking for a recurring balance-sheet tax often focus instead on property tax and estate planning.",[20,906,907],{},"The catch is that \"no wealth tax\" does not mean \"no tax on assets.\" Property tax is local, and large transfers can still face estate and gift tax.",[129,909,911],{"id":910},"ownership-taxes","Ownership taxes",[134,913,914,925],{},[137,915,916],{},[140,917,918,920,922],{},[143,919,145],{},[143,921,148],{},[143,923,924],{},"State\u002Flocal angle",[153,926,927,938,949,960],{},[140,928,929,932,935],{},[158,930,931],{},"Net wealth tax",[158,933,934],{},"None",[158,936,937],{},"No broad federal wealth tax exists",[140,939,940,943,946],{},[158,941,942],{},"Property tax",[158,944,945],{},"None federally",[158,947,948],{},"Local property tax is the recurring ownership tax",[140,950,951,954,957],{},[158,952,953],{},"Estate \u002F gift tax",[158,955,956],{},"Applies to large transfers",[158,958,959],{},"Some states add transfer taxes",[140,961,962,965,967],{},[158,963,964],{},"State asset taxes",[158,966,303],{},[158,968,969],{},"Rules differ by state and locality",[20,971,972],{},"For most people, the real planning question is not whether the U.S. has a wealth tax. It is which taxes apply to the assets they actually own.",{"title":39,"searchDepth":40,"depth":40,"links":974},[975],{"id":910,"depth":40,"text":911},{"region":228,"currency":229,"taxTreaties":230,"euBlacklist":231,"fatfStatus":232},[978,981,984],{"question":979,"answer":980},"Does the U.S. have a wealth tax?","No federal net wealth tax. Property tax and transfer taxes are the main ownership-related taxes to check.",{"question":982,"answer":983},"Is property tax the same as wealth tax?","No. Property tax is a local tax on real estate, while a wealth tax would be a recurring tax on net assets more broadly.",{"question":985,"answer":986},"What should high-net-worth families check first?","Property tax, estate and gift tax exposure, state transfer taxes, trust structure and residency.",[988,989,990,991],"The U.S. does not have a federal net wealth tax. There is no annual federal tax on a person's total assets just because they own them.","Property tax is the practical substitute people usually feel first. Real estate is taxed locally, so the real burden depends on the state, county and city.","The federal wealth-transfer system still matters. Large estates and lifetime gifts can face federal estate and gift tax, and some states add their own transfer taxes.","For investors and families with significant assets, the planning work is usually about property tax, estate tax, trust design and residency, not a federal balance-sheet levy.",{},"United States wealth tax guide. See why there is no federal net wealth tax, how property tax works, and why estate and gift taxes still matter.","U.S. wealth tax: no federal net wealth tax, but property and estate taxes matter",[996,997,998,999,1000,1001,1002],{"title":160,"slug":253,"icon":254},{"title":259,"slug":260,"icon":261},{"title":99,"slug":263,"icon":264},{"title":95,"slug":266,"icon":267},{"title":269,"slug":270,"icon":271},{"title":273,"slug":274,"icon":275},{"title":277,"slug":278,"icon":279},"\u002Fcountry\u002Funited-states\u002Fwealth-tax",[],[],{"title":897,"description":904},"country\u002Funited-states\u002Fwealth-tax",[1009,1010,1012,1013],{"label":192,"value":301,"note":195},{"label":942,"value":303,"note":1011},"Local ownership tax",{"label":297,"value":298,"note":299},{"label":1014,"value":298,"note":1015},"Gift tax","Lifetime transfers",[],[],[1019,1020,1021,1022],{"label":931,"value":301},{"label":942,"value":303},{"label":297,"value":298},{"label":1014,"value":298},[],[1025,1026,1027,1028],"No federal wealth tax does not mean no ownership tax. Property tax is often the recurring cost that matters most.","Estate and gift tax can still hit very large transfers even though there is no annual wealth tax.","State property tax, state transfer taxes and local assessments can be significant.","Trust and residency planning matter more than most people expect when assets are large or spread across states.","SClNl7gG_PVRzpcKxklGi0KoMMr09c7K9S07918LrBE",{"id":1031,"title":1032,"bestFor":1033,"body":1036,"country":42,"countryFacts":1110,"countrySlug":43,"description":1040,"excerpt":46,"extension":47,"faqs":1111,"flag":67,"heroImage":355,"howItWorks":1121,"lastUpdated":247,"meta":1126,"metaDescription":1127,"metaTitle":1128,"navigation":74,"otherTaxes":1129,"pageType":374,"path":1137,"relatedFormations":1138,"relatedGuides":1139,"seo":1140,"stem":1141,"summaryCards":1142,"taxBracketSections":1151,"taxBrackets":1152,"taxRates":1153,"taxSlug":260,"taxType":259,"visas":1161,"watchOut":1162,"__hash__":1167},"taxes\u002Fcountry\u002Funited-states\u002Finheritance-tax.md","Inheritance tax in the United States",[1034,615,329,118,1035],"Families","Estate planners",{"type":17,"value":1037,"toc":1107},[1038,1041,1044,1048,1104],[20,1039,1040],{},"The U.S. answer is simple at the headline level: there is no federal inheritance tax.",[20,1042,1043],{},"The real planning question is what happens instead. The federal estate-and-gift system can still bite, and some states add their own estate or inheritance taxes.",[129,1045,1047],{"id":1046},"transfer-taxes","Transfer taxes",[134,1049,1050,1061],{},[137,1051,1052],{},[140,1053,1054,1057,1059],{},[143,1055,1056],{},"Transfer type",[143,1058,148],{},[143,1060,641],{},[153,1062,1063,1074,1084,1094],{},[140,1064,1065,1068,1071],{},[158,1066,1067],{},"Inheritance received by heir",[158,1069,1070],{},"No federal inheritance tax",[158,1072,1073],{},"State rules may still apply",[140,1075,1076,1079,1081],{},[158,1077,1078],{},"Estate at death",[158,1080,298],{},[158,1082,1083],{},"Applies above the basic exclusion",[140,1085,1086,1089,1091],{},[158,1087,1088],{},"Lifetime gifts",[158,1090,298],{},[158,1092,1093],{},"Annual exclusion can help for smaller gifts",[140,1095,1096,1099,1101],{},[158,1097,1098],{},"State transfer taxes",[158,1100,303],{},[158,1102,1103],{},"Check the decedent's state and asset location",[20,1105,1106],{},"If the estate is large or the family has assets in multiple states, the tax answer is usually more about transfer-tax design than about inheritance tax alone.",{"title":39,"searchDepth":40,"depth":40,"links":1108},[1109],{"id":1046,"depth":40,"text":1047},{"region":228,"currency":229,"taxTreaties":230,"euBlacklist":231,"fatfStatus":232},[1112,1115,1118],{"question":1113,"answer":1114},"Does the U.S. have an inheritance tax?","No federal inheritance tax. The federal system uses estate and gift taxes instead.",{"question":1116,"answer":1117},"How much can you inherit tax-free?","It depends on the size of the estate, the transfer structure and the state involved. The federal basic exclusion amount is $15 million in 2026.",{"question":1119,"answer":1120},"Do states tax inheritances?","Some do. State estate or inheritance taxes can apply even when there is no federal inheritance tax.",[1122,1123,1124,1125],"The U.S. does not levy a federal inheritance tax. Heirs generally do not pay a federal tax just because they received an inheritance.","Instead, the federal system uses estate tax and gift tax. In 2026, the basic exclusion amount is $15 million, and transfers above that level can face estate tax up to 40%.","The annual gift exclusion is $19,000 per donee in 2026. That does not eliminate estate planning, but it does make smaller lifetime gifts easier to manage.","Some states add estate or inheritance taxes, so the answer can change depending on where the decedent lived or where the assets are located.",{},"United States inheritance tax guide for 2026. See the no federal inheritance tax rule, estate tax up to 40%, gift tax rules, the $15 million exclusion and state tax notes.","U.S. inheritance tax: no federal inheritance tax, but estate and gift tax still matter (2026)",[1130,1131,1132,1133,1134,1135,1136],{"title":160,"slug":253,"icon":254},{"title":192,"slug":256,"icon":257},{"title":99,"slug":263,"icon":264},{"title":95,"slug":266,"icon":267},{"title":269,"slug":270,"icon":271},{"title":273,"slug":274,"icon":275},{"title":277,"slug":278,"icon":279},"\u002Fcountry\u002Funited-states\u002Finheritance-tax",[],[],{"title":1032,"description":1040},"country\u002Funited-states\u002Finheritance-tax",[1143,1144,1145,1147],{"label":259,"value":301,"note":1070},{"label":297,"value":298,"note":299},{"label":1014,"value":298,"note":1146},"Annual exclusion applies",{"label":1148,"value":1149,"note":1150},"Basic exclusion","$15,000,000","2026 federal amount",[],[],[1154,1156,1158,1160],{"label":1155,"value":301},"Federal inheritance tax",{"label":1157,"value":298},"Federal estate tax",{"label":1159,"value":298},"Federal gift tax",{"label":1148,"value":1149},[],[1163,1164,1165,1166],"Heirs may not owe federal inheritance tax, but the estate itself can still face federal estate tax.","The state layer matters. Some states have their own estate or inheritance taxes.","Gift-tax planning and estate-tax planning are linked in the U.S., so lifetime gifts cannot be reviewed in isolation.","Non-U.S. assets and non-U.S. heirs can add extra treaty and reporting issues.","oWPQkK5oTpgXqnSOMS5Go8Y7ku5wneWzNapXaWLDlik",{"index":1169,"details":1356},{"id":1170,"title":1171,"bestFor":1172,"body":1176,"country":44,"countryFacts":1282,"countrySlug":45,"description":1180,"excerpt":46,"extension":47,"faqs":1287,"flag":68,"heroImage":46,"howItWorks":1297,"lastUpdated":1301,"meta":1302,"metaDescription":1303,"metaTitle":1304,"navigation":74,"otherTaxes":1305,"pageType":280,"path":1312,"relatedFormations":1313,"relatedGuides":1314,"seo":1315,"stem":1316,"summaryCards":1317,"taxBracketSections":1336,"taxBrackets":1337,"taxRates":1338,"taxSlug":46,"taxType":46,"visas":1349,"watchOut":1350,"__hash__":1355},"taxes\u002Fcountry\u002Fpuerto-rico\u002Findex.md","Taxes in Puerto Rico",[115,1173,117,1174,1175],"U.S. citizens planning a move","Export-service founders","Businesses with Puerto Rico substance",{"type":17,"value":1177,"toc":1278},[1178,1181,1185,1268,1271,1275],[20,1179,1180],{},"Puerto Rico is best understood as a separate local tax system inside the U.S. framework. Hacienda collects Puerto Rico taxes, while the IRS still matters for federal-source income, residency changes, payroll taxes, credits and some transfer-tax questions.",[129,1182,1184],{"id":1183},"the-puerto-ricous-split","The Puerto Rico–U.S. split",[134,1186,1187,1200],{},[137,1188,1189],{},[140,1190,1191,1194,1197],{},[143,1192,1193],{},"Tax area",[143,1195,1196],{},"Puerto Rico rule",[143,1198,1199],{},"U.S. federal overlay",[153,1201,1202,1213,1224,1235,1246,1257],{},[140,1203,1204,1207,1210],{},[158,1205,1206],{},"Individual income",[158,1208,1209],{},"Residents generally report worldwide income to Hacienda",[158,1211,1212],{},"Section 933 can exclude Puerto Rico-source income for bona fide residents",[140,1214,1215,1218,1221],{},[158,1216,1217],{},"Corporate income",[158,1219,1220],{},"Local corporations can face normal tax plus surtax",[158,1222,1223],{},"Federal treatment depends on entity, source and activity",[140,1225,1226,1229,1232],{},[158,1227,1228],{},"Capital gains",[158,1230,1231],{},"General long-term rate is 20% under the local system",[158,1233,1234],{},"Source and bona fide residence determine whether Section 933 applies",[140,1236,1237,1240,1243],{},[158,1238,1239],{},"Dividends",[158,1241,1242],{},"Eligible dividends generally use a 15% preferential rate",[158,1244,1245],{},"U.S.-source dividends and federal filing can remain relevant",[140,1247,1248,1251,1254],{},[158,1249,1250],{},"Wealth",[158,1252,1253],{},"No broad annual net wealth tax",[158,1255,1256],{},"Property, estate and gift rules still matter",[140,1258,1259,1262,1265],{},[158,1260,1261],{},"Consumption",[158,1263,1264],{},"IVU is generally 11.5%",[158,1266,1267],{},"No federal VAT replaces it",[20,1269,1270],{},"The practical answer depends on where you are resident, where services are performed, where an asset is located, how an entity is classified and whether an incentive decree applies.",[129,1272,1274],{"id":1273},"ordinary-rules-versus-incentives","Ordinary rules versus incentives",[20,1276,1277],{},"Act 60 can provide benefits for qualifying export services, manufacturing, tourism and resident individual investors. Those benefits are not the default Puerto Rico tax system. They normally require eligibility, an application or decree, reporting and ongoing compliance.",{"title":39,"searchDepth":40,"depth":40,"links":1279},[1280,1281],{"id":1183,"depth":40,"text":1184},{"id":1273,"depth":40,"text":1274},{"region":1283,"currency":229,"taxTreaties":1284,"euBlacklist":1285,"fatfStatus":1286},"Caribbean","U.S. network with territory-specific rules","No separate country listing","Not separately listed",[1288,1291,1294],{"question":1289,"answer":1290},"Is Puerto Rico a separate tax jurisdiction?","Yes. Puerto Rico has its own tax code and Treasury Department, but it remains inside the U.S. constitutional and federal tax framework.",{"question":1292,"answer":1293},"Do Puerto Rico residents pay U.S. federal income tax?","Bona fide residents generally exclude Puerto Rico-source income under Section 933. U.S.-source income and special categories can still require a U.S. federal return.",{"question":1295,"answer":1296},"Is Puerto Rico tax-free?","No. Puerto Rico has individual, corporate, capital-gains, dividend, sales, property, payroll and transfer taxes. Incentives apply only when their conditions are met.",[1298,1299,1300],"Puerto Rico is a U.S. territory with its own independent income-tax system. Hacienda administers local income tax, corporate tax, IVU sales and use tax, excise taxes and transfer taxes.","Bona fide residents generally report worldwide income to Puerto Rico. For U.S. federal income tax, Section 933 generally excludes Puerto Rico-source income for a bona fide resident, but U.S.-source income, U.S. government pay and filing-status changes can still create a federal return.","The headline rate is not the full cost. Payroll taxes, IVU, municipal property tax, municipal business-license tax and the alternative basic tax can materially change the result.","August 2026",{},"Puerto Rico tax overview for residents, U.S. citizens, investors and founders. Compare local income tax, corporate tax, capital gains, dividends, IVU, property tax and federal Section 933 rules.","Puerto Rico taxes: income, corporate, capital gains and Act 60 (2026)",[1306,1307,1308,1309,1310,1311],{"title":160,"slug":253,"icon":254},{"title":192,"slug":256,"icon":257},{"title":259,"slug":260,"icon":261},{"title":99,"slug":263,"icon":264},{"title":95,"slug":266,"icon":267},{"title":269,"slug":270,"icon":271},"\u002Fcountry\u002Fpuerto-rico",[],[],{"title":1171,"description":1180},"country\u002Fpuerto-rico\u002Findex",[1318,1321,1324,1327,1330,1332],{"label":160,"value":1319,"note":1320},"0% - 33%","Statutory individual table",{"label":95,"value":1322,"note":1323},"Up to 37.5%","Normal tax plus surtax",{"label":99,"value":1325,"note":1326},"20%","General long-term rate",{"label":269,"value":1328,"note":1329},"15% generally","Eligible distributions",{"label":192,"value":301,"note":1331},"No broad net wealth tax",{"label":1333,"value":1334,"note":1335},"Sales and use tax","11.5%","10.5% state plus 1% municipal",[],[],[1339,1341,1343,1344,1346,1347],{"label":1340,"value":1319,"badge":456},"Individual income tax",{"label":1342,"value":1322},"Corporate income tax",{"label":648,"value":1325},{"label":1345,"value":1328},"Eligible dividends",{"label":192,"value":301},{"label":1348,"value":1334},"IVU sales and use tax",[],[1351,1352,1353,1354],"Puerto Rico is not a sovereign country. Residency, citizenship, federal filing, estate tax and treaty analysis can involve both Puerto Rico and the United States.","Act 60 incentives are decree-based and activity-specific. A move to Puerto Rico does not automatically produce a 4% business rate or a capital-gains exemption.","Bona fide residence requires more than renting an apartment. Presence, tax home and closer-connection tests matter, especially in the year of arrival or departure.","The local tax bill can include FICA payroll taxes, IVU, CRIM property tax and municipal business taxes even where an income-tax incentive applies.","PiHwWjgd8eqYxtSMArOPY1B_2QMHo-qBLghyxVTkP3Y",{"income-tax":1357,"corporate-tax":1470,"capital-gains-tax":1619,"dividend-tax":1704,"wealth-tax":1782,"inheritance-tax":1866},{"id":1358,"title":1359,"bestFor":1360,"body":1363,"country":44,"countryFacts":1381,"countrySlug":45,"description":1367,"excerpt":46,"extension":47,"faqs":1382,"flag":68,"heroImage":46,"howItWorks":1392,"lastUpdated":1301,"meta":1398,"metaDescription":1399,"metaTitle":1400,"navigation":74,"otherTaxes":1401,"pageType":374,"path":1407,"relatedFormations":1408,"relatedGuides":1409,"seo":1410,"stem":1411,"summaryCards":1412,"taxBracketSections":1426,"taxBrackets":1448,"taxRates":1449,"taxSlug":253,"taxType":160,"visas":1463,"watchOut":1464,"__hash__":1469},"taxes\u002Fcountry\u002Fpuerto-rico\u002Fincome-tax.md","Income tax in Puerto Rico",[115,328,1361,330,1362],"U.S. citizens moving to Puerto Rico","High earners with clean residence facts",{"type":17,"value":1364,"toc":1378},[1365,1368,1372,1375],[20,1366,1367],{},"Puerto Rico income tax is a two-return question for many people. Hacienda is the primary system for a Puerto Rico resident, while the IRS remains relevant when income is sourced outside Puerto Rico or a federal filing trigger applies.",[129,1369,1371],{"id":1370},"source-and-residence-first","Source and residence first",[20,1373,1374],{},"The IRS generally tests bona fide residence through physical presence, tax home and closer connection. A person who lives in Puerto Rico but keeps a tax home or closer connection elsewhere can have a different result from a full-year bona fide resident.",[20,1376,1377],{},"For qualifying bona fide residents, Section 933 generally excludes Puerto Rico-source income from U.S. federal income tax. It does not turn U.S.-source income into Puerto Rico-source income, and it does not erase payroll tax or filing obligations.",{"title":39,"searchDepth":40,"depth":40,"links":1379},[1380],{"id":1370,"depth":40,"text":1371},{"region":1283,"currency":229,"taxTreaties":1284,"euBlacklist":1285,"fatfStatus":1286},[1383,1386,1389],{"question":1384,"answer":1385},"What is the income tax rate in Puerto Rico?","The regular individual table in the 2025 Hacienda instructions ranges from 0% to 33% of net taxable income. Credits, discounts, preferential rates and the 2026 relief resolution can change the final amount.",{"question":1387,"answer":1388},"Do Puerto Rico residents pay federal income tax on their salary?","A bona fide resident generally excludes Puerto Rico-source salary from U.S. federal income tax under Section 933, except for special cases such as U.S. government compensation. Federal payroll taxes can still apply.",{"question":1390,"answer":1391},"How do I become a bona fide resident of Puerto Rico?","The IRS generally looks at the presence test, whether your tax home is outside Puerto Rico and whether you have a closer connection to the United States or another country.",[1393,1394,1395,1396,1397],"Puerto Rico residents generally file Form 482 with Hacienda and report income from worldwide sources. The ordinary local table applies after exemptions, deductions, credits and other adjustments.","The 2025 Hacienda instructions show a regular individual table of 0%, 7%, 14%, 25% and 33%. Preferential categories such as long-term capital gains, eligible dividends and certain interest are computed separately.","Hacienda's 2026 relief resolution introduced a lower comparison schedule for eligible full-year 2025 residents with net taxable income of up to $150,000. It is a targeted relief calculation for 2025 returns, not a reason to present the old table as permanently repealed.","For U.S. federal income tax, a bona fide resident generally excludes Puerto Rico-source income under Section 933. U.S.-source income, U.S. government compensation and the year of moving can produce a federal filing obligation.","Social Security and Medicare taxes are a separate federal layer. Employees and self-employed people should model FICA or self-employment tax even when Puerto Rico-source income is excluded from federal income tax.",{},"Puerto Rico income tax guide for residents and U.S. citizens. See the 0% to 33% individual table, preferential rates, 2026 relief, FICA and federal Section 933 rules.","Puerto Rico income tax: rates, brackets and Section 933 (2026)",[1402,1403,1404,1405,1406],{"title":192,"slug":256,"icon":257},{"title":259,"slug":260,"icon":261},{"title":99,"slug":263,"icon":264},{"title":95,"slug":266,"icon":267},{"title":269,"slug":270,"icon":271},"\u002Fcountry\u002Fpuerto-rico\u002Fincome-tax",[],[],{"title":1359,"description":1367},"country\u002Fpuerto-rico\u002Fincome-tax",[1413,1415,1419,1423],{"label":1414,"value":1319,"note":1320},"Ordinary rates",{"label":1416,"value":1417,"note":1418},"2026 relief comparison","0% - 29%","Eligible 2025 filers only",{"label":1420,"value":1421,"note":1422},"Bona fide resident","Worldwide","Local reporting scope",{"label":1424,"value":309,"note":1425},"FICA","Payroll and self-employment layer",[1427],{"title":1428,"rows":1429},"Regular individual table in the 2025 Hacienda instructions",[1430,1432,1436,1440,1444],{"band":1431,"rate":301},"Up to $9,000",{"band":1433,"rate":1434,"note":1435},"$9,001 - $25,000","7%","7% applies to the excess over $9,000.",{"band":1437,"rate":1438,"note":1439},"$25,001 - $41,500","14%","Base tax of $1,120 plus 14% of the excess over $25,000.",{"band":1441,"rate":1442,"note":1443},"$41,501 - $61,500","25%","Base tax of $3,430 plus 25% of the excess over $41,500.",{"band":1445,"rate":1446,"note":1447},"Over $61,500","33%","Base tax of $8,430 plus 33% of the excess over $61,500.",[],[1450,1452,1454,1457,1460],{"label":1451,"value":1319,"badge":456},"Regular individual income tax",{"label":1453,"value":1417},"2025 relief computation",{"label":1455,"value":1456},"Preferential income","4% \u002F 10% \u002F 15% \u002F 20%",{"label":1458,"value":1459},"Alternative basic tax","May apply",{"label":1461,"value":1462},"Social Security and Medicare","Federal rules",[],[1465,1466,1467,1468],"Do not confuse the Section 933 exclusion with the foreign earned income exclusion. Puerto Rico is a U.S. territory and uses its own source and bona fide-residence rules.","The year you move to or from Puerto Rico is often the hardest year. Part-year residence, source allocation and Form 8898 can all matter.","The alternative basic tax can apply to high-income individuals and preference items, so the ordinary bracket table is not always the final tax.","FICA, IVU, property tax and municipal business taxes are not removed just because the federal income-tax result looks favorable.","ky0SaPJS_0M77kOOUYM2Fs1aARxbzSznHd28CCV_MdQ",{"id":1471,"title":1472,"bestFor":1473,"body":1479,"country":44,"countryFacts":1554,"countrySlug":45,"description":1483,"excerpt":46,"extension":47,"faqs":1555,"flag":68,"heroImage":46,"howItWorks":1565,"lastUpdated":1301,"meta":1571,"metaDescription":1572,"metaTitle":1573,"navigation":74,"otherTaxes":1574,"pageType":374,"path":1580,"relatedFormations":1581,"relatedGuides":1582,"seo":1583,"stem":1584,"summaryCards":1585,"taxBracketSections":1601,"taxBrackets":1602,"taxRates":1603,"taxSlug":266,"taxType":95,"visas":1612,"watchOut":1613,"__hash__":1618},"taxes\u002Fcountry\u002Fpuerto-rico\u002Fcorporate-tax.md","Corporate tax in Puerto Rico",[1474,1475,1476,1477,1478],"Local operating companies","Export-service businesses","Manufacturers","Founders with Puerto Rico substance","Businesses applying for a decree",{"type":17,"value":1480,"toc":1551},[1481,1484,1488,1548],[20,1482,1483],{},"Puerto Rico corporate tax has a high ordinary headline but a broad incentive architecture. The right analysis starts with the entity, the activity and the source of the income before comparing the ordinary 37.5% ceiling with an incentive rate.",[129,1485,1487],{"id":1486},"ordinary-versus-incentive-treatment","Ordinary versus incentive treatment",[134,1489,1490,1503],{},[137,1491,1492],{},[140,1493,1494,1497,1500],{},[143,1495,1496],{},"Business profile",[143,1498,1499],{},"Local starting point",[143,1501,1502],{},"Main question",[153,1504,1505,1516,1527,1538],{},[140,1506,1507,1510,1513],{},[158,1508,1509],{},"Ordinary corporation",[158,1511,1512],{},"18.5% normal tax plus surtax",[158,1514,1515],{},"What is the taxable net income and surtax band?",[140,1517,1518,1521,1524],{},[158,1519,1520],{},"Pass-through entity",[158,1522,1523],{},"Owner-level treatment may apply",[158,1525,1526],{},"Who is taxed on the income and at what rate?",[140,1528,1529,1532,1535],{},[158,1530,1531],{},"Export services",[158,1533,1534],{},"Possible Act 60 preference",[158,1536,1537],{},"Is the activity genuinely exported and covered by a decree?",[140,1539,1540,1543,1545],{},[158,1541,1542],{},"Manufacturing or tourism",[158,1544,1534],{},[158,1546,1547],{},"Do the operations satisfy the incentive code?",[20,1549,1550],{},"Puerto Rico's 2025 corporate return is Form 480.20 and Hacienda requires electronic filing. Compliance is part of the tax cost, not an afterthought.",{"title":39,"searchDepth":40,"depth":40,"links":1552},[1553],{"id":1486,"depth":40,"text":1487},{"region":1283,"currency":229,"taxTreaties":1284,"euBlacklist":1285,"fatfStatus":1286},[1556,1559,1562],{"question":1557,"answer":1558},"What is the corporate tax rate in Puerto Rico?","The ordinary system uses an 18.5% normal tax plus a graduated surtax that can bring the top marginal rate to 37.5%.",{"question":1560,"answer":1561},"Is Puerto Rico corporate tax 4%?","Sometimes, but only for qualifying activities under an incentive regime such as Act 60 and usually subject to an approved decree and continuing compliance.",{"question":1563,"answer":1564},"Do Puerto Rico companies pay U.S. federal corporate tax?","The federal result depends on the entity, income source, activity and applicable U.S. rules. Puerto Rico incorporation alone is not a complete federal-tax answer.",[1566,1567,1568,1569,1570],"Puerto Rico's ordinary corporate regime imposes an 18.5% normal tax and a graduated additional surtax that can raise the combined marginal rate to 37.5%. The effective result depends on taxable income, deductions, credits and entity classification.","A corporation, an LLC taxed as a corporation and a pass-through entity are not interchangeable. Partnerships and other pass-through structures can shift the tax computation to the owners rather than using the corporation table.","Foreign corporations doing business in Puerto Rico can face local tax on Puerto Rico-source income or income effectively connected with the Puerto Rico business. Act 154 and related sourcing rules require special care for large groups.","Act 60 provides preferential regimes for qualifying export services, manufacturing, tourism, finance and other activities. A 4% headline rate is an incentive result, not the ordinary rate for every Puerto Rico company.","The U.S. federal treatment is separate. A Puerto Rico company is not automatically outside federal tax, withholding, information reporting or transfer-pricing rules.",{},"Puerto Rico corporate tax guide for founders and companies. See the 18.5% normal rate, up to 37.5% combined rate, Act 60 incentives, entity classification and U.S. overlays.","Puerto Rico corporate tax: 18.5%, 37.5% and Act 60 rates (2026)",[1575,1576,1577,1578,1579],{"title":160,"slug":253,"icon":254},{"title":192,"slug":256,"icon":257},{"title":259,"slug":260,"icon":261},{"title":99,"slug":263,"icon":264},{"title":269,"slug":270,"icon":271},"\u002Fcountry\u002Fpuerto-rico\u002Fcorporate-tax",[],[],{"title":1472,"description":1483},"country\u002Fpuerto-rico\u002Fcorporate-tax",[1586,1590,1593,1597],{"label":1587,"value":1588,"note":1589},"Normal corporate tax","18.5%","Base rate",{"label":1591,"value":1592,"note":1323},"Maximum combined rate","37.5%",{"label":1594,"value":1595,"note":1596},"Act 60 activities","Often 4%","Eligibility and decree required",{"label":1598,"value":1599,"note":1600},"Corporate return","Form 480.20","2025 filing electronically",[],[],[1604,1605,1607,1609],{"label":1587,"value":1588,"badge":1589},{"label":1606,"value":1322},"Combined marginal rate",{"label":1608,"value":1595},"Act 60 qualifying activities",{"label":1610,"value":1611},"Alternative or optional regimes","Case by case",[],[1614,1615,1616,1617],"The 37.5% figure is a top marginal combined rate, not a flat tax on every dollar of corporate profit.","A tax decree does not replace substance. The activity, employees, assets, customers and revenue sourcing must fit the incentive claimed.","Entity classification, related-party payments, transfer pricing, withholding and U.S. information reporting can matter more than the local headline rate.","A company managed from Puerto Rico can create local tax and filing exposure even when it was incorporated elsewhere.","BpMGrDc06sC0Rqw8U447HhVYyNB7mRlFlKYNtOIq_Vk",{"id":1620,"title":1621,"bestFor":1622,"body":1626,"country":44,"countryFacts":1641,"countrySlug":45,"description":1630,"excerpt":46,"extension":47,"faqs":1642,"flag":68,"heroImage":46,"howItWorks":1652,"lastUpdated":1301,"meta":1657,"metaDescription":1658,"metaTitle":1659,"navigation":74,"otherTaxes":1660,"pageType":374,"path":1666,"relatedFormations":1667,"relatedGuides":1668,"seo":1669,"stem":1670,"summaryCards":1671,"taxBracketSections":1684,"taxBrackets":1685,"taxRates":1686,"taxSlug":263,"taxType":99,"visas":1697,"watchOut":1698,"__hash__":1703},"taxes\u002Fcountry\u002Fpuerto-rico\u002Fcapital-gains-tax.md","Capital gains tax in Puerto Rico",[117,1623,1624,615,1625],"Founders selling shares","U.S. citizens considering relocation","Resident individual investors with a decree",{"type":17,"value":1627,"toc":1638},[1628,1631,1635],[20,1629,1630],{},"Puerto Rico capital-gains planning is mostly a sourcing and timing exercise. The regular local rate is 20% for net long-term capital gains, but federal Section 933 and Act 60 can change the result for different assets and taxpayers.",[129,1632,1634],{"id":1633},"the-move-year-problem","The move-year problem",[20,1636,1637],{},"Someone who moves to Puerto Rico does not automatically convert an existing portfolio into Puerto Rico-source property. Keep acquisition records, valuation dates and the exact date bona fide residence begins. Those facts can determine whether a gain is local, U.S.-source, excluded, taxable or eligible for an incentive.",{"title":39,"searchDepth":40,"depth":40,"links":1639},[1640],{"id":1633,"depth":40,"text":1634},{"region":1283,"currency":229,"taxTreaties":1284,"euBlacklist":1285,"fatfStatus":1286},[1643,1646,1649],{"question":1644,"answer":1645},"What is the capital gains tax rate in Puerto Rico?","The general local rate for net long-term capital gain is 20% in the 2025 Hacienda instructions. Short-term gains generally use ordinary income treatment.",{"question":1647,"answer":1648},"Does Puerto Rico have no capital gains tax?","No. The regular system has a 20% long-term rate. Some Act 60 resident individual investors can qualify for a local exemption on post-residency appreciation.",{"question":1650,"answer":1651},"Can a U.S. citizen move to Puerto Rico and avoid tax on existing gains?","Not automatically. Existing appreciation, source rules, the timing of the move and any Act 60 conditions must be analyzed separately.",[1653,1654,1655,1656],"Puerto Rico's regular system distinguishes short-term and long-term capital gains. The 2025 individual instructions place net long-term capital gain in the 20% preferential-rate column, while short-term gains generally follow ordinary income treatment.","The asset, holding period, source and taxpayer status matter. Real estate, securities, partnership interests and business assets can each require different basis and sourcing analysis.","A bona fide Puerto Rico resident may exclude Puerto Rico-source income from U.S. federal income tax under Section 933, but gains involving U.S. assets or a move year need separate federal sourcing analysis.","Act 60 resident individual investors can receive a full Puerto Rico exemption for appreciation after becoming resident when the statutory conditions are met and the gain is recognized before January 1, 2036. Certain pre-residency appreciation recognized after ten years can receive a 5% rate.",{},"Puerto Rico capital gains tax guide for investors and U.S. citizens. See the 20% long-term rate, ordinary treatment for short-term gains, Section 933 and Act 60 resident investor rules.","Puerto Rico capital gains tax: 20% rate and Act 60 rules (2026)",[1661,1662,1663,1664,1665],{"title":160,"slug":253,"icon":254},{"title":192,"slug":256,"icon":257},{"title":259,"slug":260,"icon":261},{"title":95,"slug":266,"icon":267},{"title":269,"slug":270,"icon":271},"\u002Fcountry\u002Fpuerto-rico\u002Fcapital-gains-tax",[],[],{"title":1621,"description":1630},"country\u002Fpuerto-rico\u002Fcapital-gains-tax",[1672,1674,1676,1680],{"label":738,"value":1325,"note":1673},"General local preferential rate",{"label":741,"value":1414,"note":1675},"Classification matters",{"label":1677,"value":1678,"note":1679},"Act 60 post-move gain","0% locally","Qualifying resident investor",{"label":1681,"value":1682,"note":1683},"Act 60 pre-move gain","5% in one case","Ten-year holding condition",[],[],[1687,1690,1692,1694],{"label":1688,"value":1325,"badge":1689},"Net long-term capital gain","General local rate",{"label":1691,"value":1414},"Short-term capital gain",{"label":1693,"value":1678},"Act 60 post-residency appreciation",{"label":1695,"value":1696},"Act 60 qualifying pre-residency appreciation","5%",[],[1699,1700,1701,1702],"Act 60 does not erase federal tax on U.S.-source gains. The asset's location, the service or business connection and the year of the sale still matter.","The 20% rate is for the general long-term category. Short-term gains and gains connected with a trade or business can be treated differently.","A resident individual investor must satisfy eligibility and decree conditions. The person cannot simply claim the benefit after moving without documentation.","Basis records are especially important when an asset was acquired before the move, because pre- and post-residency appreciation can be separated.","mNluY8ytRZnGSUWAgFvM69cA1GIiWm4WXix0GtIMf58",{"id":1705,"title":1706,"bestFor":1707,"body":1710,"country":44,"countryFacts":1720,"countrySlug":45,"description":1714,"excerpt":46,"extension":47,"faqs":1721,"flag":68,"heroImage":46,"howItWorks":1731,"lastUpdated":1301,"meta":1736,"metaDescription":1737,"metaTitle":1738,"navigation":74,"otherTaxes":1739,"pageType":374,"path":1745,"relatedFormations":1746,"relatedGuides":1747,"seo":1748,"stem":1749,"summaryCards":1750,"taxBracketSections":1764,"taxBrackets":1765,"taxRates":1766,"taxSlug":270,"taxType":269,"visas":1775,"watchOut":1776,"__hash__":1781},"taxes\u002Fcountry\u002Fpuerto-rico\u002Fdividend-tax.md","Dividend tax in Puerto Rico",[1708,116,476,117,1709],"Shareholders","Resident individual investors",{"type":17,"value":1711,"toc":1718},[1712,1715],[20,1713,1714],{},"Puerto Rico dividend tax is a classification exercise. The current filing materials show a general 15% preferential category, but the distribution's source, the company's earnings and profits and the shareholder's status can change the result.",[20,1716,1717],{},"The cleanest workflow is to confirm the corporation's distribution category first, then check local withholding, the recipient's Puerto Rico return and any U.S. federal filing or Section 933 position.",{"title":39,"searchDepth":40,"depth":40,"links":1719},[],{"region":1283,"currency":229,"taxTreaties":1284,"euBlacklist":1285,"fatfStatus":1286},[1722,1725,1728],{"question":1723,"answer":1724},"What is the dividend tax rate in Puerto Rico?","Eligible dividends generally use a 15% preferential local rate in the 2025 filing materials, but other distributions can fall into 10%, 20% or special incentive categories.",{"question":1726,"answer":1727},"Are dividends tax-free in Puerto Rico?","Not under the ordinary rules. Qualifying Act 60 resident individual investors can receive certain dividends tax-free locally, subject to the decree and statutory conditions.",{"question":1729,"answer":1730},"Does Section 933 exclude dividends?","It can exclude qualifying Puerto Rico-source income for a bona fide resident, but source rules and the character of the dividend must be established before relying on the exclusion.",[1732,1733,1734,1735],"Puerto Rico does not treat every distribution identically. The 2025 individual filing materials identify eligible dividend distributions in the preferential-rate schedule, generally at 15%, while other categories can use 10%, 20% or an incentive-specific rate.","The payer's earnings and profits, the type of corporation, the recipient's status and the legal source of the distribution determine the rate and reporting. A return of capital or liquidation distribution is not automatically an ordinary dividend.","A qualifying Act 60 resident individual investor can generally receive Puerto Rico-source dividends tax-free locally during the incentive period, but eligibility, decree terms and the 2035 sunset matter.","U.S. federal dividend taxation is a separate question. Section 933 can exclude qualifying Puerto Rico-source income for a bona fide resident, but U.S.-source dividends and federal filing requirements can remain in scope.",{},"Puerto Rico dividend tax guide for shareholders and founders. See the general 15% preferential rate, 10% and 20% categories, Act 60 exemptions, withholding and U.S. federal caveats.","Puerto Rico dividend tax: 15% rate, withholding and Act 60 (2026)",[1740,1741,1742,1743,1744],{"title":160,"slug":253,"icon":254},{"title":192,"slug":256,"icon":257},{"title":259,"slug":260,"icon":261},{"title":99,"slug":263,"icon":264},{"title":95,"slug":266,"icon":267},"\u002Fcountry\u002Fpuerto-rico\u002Fdividend-tax",[],[],{"title":1706,"description":1714},"country\u002Fpuerto-rico\u002Fdividend-tax",[1751,1753,1757,1760],{"label":1345,"value":1328,"note":1752},"Preferential local category",{"label":1754,"value":1755,"note":1756},"Other preferential categories","10% \u002F 20%","Depends on the distribution",{"label":1758,"value":1678,"note":1759},"Act 60 resident investor","Qualifying dividends only",{"label":1761,"value":1762,"note":1763},"Withholding","At source","Form 480 reporting",[],[],[1767,1769,1771,1773],{"label":1768,"value":1328,"badge":753},"Eligible dividend distributions",{"label":1770,"value":1755},"Other dividend categories",{"label":1772,"value":1678},"Act 60 resident individual investor",{"label":1774,"value":1611},"Foreign dividends",[],[1777,1778,1779,1780],"The 15% headline is for an eligible preferential category, not every payment a shareholder receives from a company.","A dividend from a Puerto Rico company and a dividend from a U.S. or foreign corporation can have different local and federal source results.","Act 60 benefits are personal and decree-based. They do not automatically pass to a company, spouse, trust or non-qualifying shareholder.","Keep board approvals, earnings-and-profits support, withholding certificates and Form 480 records aligned.","QNBxXYOVw2rb_I31nrzWzMVraAE69P7cTznarxAoK8U",{"id":1783,"title":1784,"bestFor":1785,"body":1788,"country":44,"countryFacts":1803,"countrySlug":45,"description":1792,"excerpt":46,"extension":47,"faqs":1804,"flag":68,"heroImage":46,"howItWorks":1814,"lastUpdated":1301,"meta":1819,"metaDescription":1820,"metaTitle":1821,"navigation":74,"otherTaxes":1822,"pageType":374,"path":1828,"relatedFormations":1829,"relatedGuides":1830,"seo":1831,"stem":1832,"summaryCards":1833,"taxBracketSections":1847,"taxBrackets":1848,"taxRates":1849,"taxSlug":256,"taxType":192,"visas":1859,"watchOut":1860,"__hash__":1865},"taxes\u002Fcountry\u002Fpuerto-rico\u002Fwealth-tax.md","Wealth tax in Puerto Rico",[117,329,615,1786,1787],"Crypto holders","Property owners who model CRIM correctly",{"type":17,"value":1789,"toc":1800},[1790,1793,1797],[20,1791,1792],{},"Puerto Rico has no broad annual net wealth tax, but property owners should not mistake that for a zero-tax asset environment. CRIM property tax, income tax on returns and transfer taxes still shape the carrying cost of wealth.",[129,1794,1796],{"id":1795},"what-replaces-a-wealth-tax","What replaces a wealth tax?",[20,1798,1799],{},"The most important substitute is not a single wealth levy. It is a mix of municipal property taxes, tax on income produced by assets, IVU or transfer taxes on transactions, and estate or gift tax when wealth moves between people.",{"title":39,"searchDepth":40,"depth":40,"links":1801},[1802],{"id":1795,"depth":40,"text":1796},{"region":1283,"currency":229,"taxTreaties":1284,"euBlacklist":1285,"fatfStatus":1286},[1805,1808,1811],{"question":1806,"answer":1807},"Does Puerto Rico have a wealth tax?","No. Puerto Rico does not impose a broad annual net wealth or net worth tax on individuals.",{"question":1809,"answer":1810},"Do Puerto Rico residents pay property tax?","Yes. CRIM and municipal rules can impose real property tax and business personal property tax, with rates and exemptions varying by municipality and asset.",{"question":1812,"answer":1813},"Are foreign assets subject to Puerto Rico wealth tax?","There is no general wealth tax on foreign assets. Income, transfer and federal rules can still apply depending on the asset and the taxpayer's status.",[1815,1816,1817,1818],"Puerto Rico does not have a general annual tax on an individual's worldwide net worth. Cash, securities, private-company shares and crypto are not taxed merely because they are held.","That does not mean assets are tax-free. CRIM administers real and personal property taxes, municipalities can impose business-license taxes, and income, sales, capital-gains, estate and gift taxes can apply when assets generate returns or move.","Property-tax rates vary by municipality and property type. Real-estate assessments also use Puerto Rico's local valuation system, so a nominal rate should not be compared directly with a market-value rate in another country.","Act 60 can provide property-tax or municipal-tax benefits for qualifying activities, but those benefits are activity-specific and normally tied to an approved decree.",{},"Puerto Rico wealth tax guide for investors and property owners. See the 0% net wealth tax position, CRIM real and personal property tax, municipal variation and Act 60 caveats.","Puerto Rico wealth tax: net worth, CRIM property tax and assets (2026)",[1823,1824,1825,1826,1827],{"title":160,"slug":253,"icon":254},{"title":259,"slug":260,"icon":261},{"title":99,"slug":263,"icon":264},{"title":95,"slug":266,"icon":267},{"title":269,"slug":270,"icon":271},"\u002Fcountry\u002Fpuerto-rico\u002Fwealth-tax",[],[],{"title":1784,"description":1792},"country\u002Fpuerto-rico\u002Fwealth-tax",[1834,1836,1839,1843],{"label":931,"value":301,"note":1835},"No broad annual levy",{"label":1837,"value":301,"note":1838},"Net worth tax","No personal balance-sheet tax",{"label":1840,"value":1841,"note":1842},"Real property tax","Municipal","CRIM rates vary",{"label":1844,"value":1845,"note":1846},"Personal property tax","Business assets","Municipal rules apply",[],[],[1850,1853,1855,1857],{"label":1851,"value":301,"badge":1852},"Broad net wealth tax","No general levy",{"label":1854,"value":301},"Annual net worth tax",{"label":1840,"value":1856},"Varies by municipality",{"label":1858,"value":1856},"Business personal property tax",[],[1861,1862,1863,1864],"No wealth tax does not mean no property tax. A home, rental property or business equipment can create CRIM obligations.","Puerto Rico's assessed property values do not map neatly to current market value, so calculate the local bill from the assessment and municipality rather than a foreign property-tax percentage.","An asset can be outside the wealth-tax concept but still produce taxable interest, dividends, rent or capital gains.","Property-tax exemptions in an Act 60 decree do not automatically exempt personal assets or unrelated real estate.","z6qoX9kz9m2Iq6LU2st9iJP_0lzcb6LUXMNatBoM3aM",{"id":1867,"title":1868,"bestFor":1869,"body":1872,"country":44,"countryFacts":1882,"countrySlug":45,"description":1876,"excerpt":46,"extension":47,"faqs":1883,"flag":68,"heroImage":46,"howItWorks":1893,"lastUpdated":1301,"meta":1898,"metaDescription":1899,"metaTitle":1900,"navigation":74,"otherTaxes":1901,"pageType":374,"path":1907,"relatedFormations":1908,"relatedGuides":1909,"seo":1910,"stem":1911,"summaryCards":1912,"taxBracketSections":1926,"taxBrackets":1927,"taxRates":1928,"taxSlug":260,"taxType":259,"visas":1938,"watchOut":1939,"__hash__":1944},"taxes\u002Fcountry\u002Fpuerto-rico\u002Finheritance-tax.md","Inheritance tax in Puerto Rico",[1034,117,899,1870,1871],"U.S. citizens living in Puerto Rico","Estate-planning clients",{"type":17,"value":1873,"toc":1880},[1874,1877],[20,1875,1876],{},"Puerto Rico's transfer-tax system is more substantial than the usual online shorthand suggests. The local code imposes estate and gift taxes, but exemptions and credits can substantially reduce the amount due.",[20,1878,1879],{},"The clean planning sequence is to identify the decedent or donor's status, locate the assets, calculate the Puerto Rico taxable base, then check federal estate and gift tax before transferring anything.",{"title":39,"searchDepth":40,"depth":40,"links":1881},[],{"region":1283,"currency":229,"taxTreaties":1284,"euBlacklist":1285,"fatfStatus":1286},[1884,1887,1890],{"question":1885,"answer":1886},"Does Puerto Rico have inheritance tax?","Puerto Rico has an estate-transfer tax of 10% before the statutory deductions and credits. It is not accurate to describe the territory as having no death tax.",{"question":1888,"answer":1889},"Does Puerto Rico tax gifts?","Yes. The Puerto Rico code imposes a 10% gift tax on taxable gifts and provides a $10,000 annual exemption per recipient, with additional rules and deductions.",{"question":1891,"answer":1892},"Is there also U.S. estate tax?","Potentially. U.S. citizenship, domicile, U.S.-situs property and the federal estate-and-gift rules must be checked separately from the Puerto Rico estate tax.",[1894,1895,1896,1897],"Puerto Rico imposes a 10% tax on the taxable estate of a Puerto Rico decedent under the Internal Revenue Code. The tax is calculated after the statutory deductions and credits, so 10% is a starting rate rather than an automatic charge on the entire estate.","The Puerto Rico resident-estate rules include a fixed $1 million deduction, subject to the detailed estate provisions. Credits can also apply for inheritance taxes paid elsewhere, prior transfers and certain timely-paid liabilities.","Puerto Rico separately imposes a 10% gift tax on taxable gifts. The code provides a $10,000 annual exemption per recipient, and gifts of Puerto Rico real property can require a return even when the general filing threshold would not otherwise be crossed.","U.S. federal estate and gift tax is a separate analysis for U.S. citizens, domiciliaries, non-citizens and property connected with the United States. Puerto Rico residence does not make estate planning a purely local question.",{},"Puerto Rico inheritance tax guide for families and property owners. See the 10% estate-transfer tax, $1 million fixed deduction, 10% gift tax, annual exemption and U.S. federal overlay.","Puerto Rico inheritance tax: estate, gift tax and $1m exemption (2026)",[1902,1903,1904,1905,1906],{"title":160,"slug":253,"icon":254},{"title":192,"slug":256,"icon":257},{"title":99,"slug":263,"icon":264},{"title":95,"slug":266,"icon":267},{"title":269,"slug":270,"icon":271},"\u002Fcountry\u002Fpuerto-rico\u002Finheritance-tax",[],[],{"title":1868,"description":1876},"country\u002Fpuerto-rico\u002Finheritance-tax",[1913,1916,1920,1922],{"label":1914,"value":400,"note":1915},"Estate-transfer tax","Before exemptions and credits",{"label":1917,"value":1918,"note":1919},"Fixed estate exemption","$1 million","Puerto Rico resident estates",{"label":1014,"value":400,"note":1921},"Taxable gifts",{"label":1923,"value":1924,"note":1925},"Annual gift exemption","$10,000","Per recipient",[],[],[1929,1932,1934,1936],{"label":1930,"value":400,"badge":1931},"Puerto Rico estate-transfer tax","Before credits",{"label":1933,"value":1918},"Fixed estate deduction",{"label":1935,"value":400},"Puerto Rico gift tax",{"label":1923,"value":1937},"$10,000 per recipient",[],[1940,1941,1942,1943],"Calling Puerto Rico an inheritance-tax-free jurisdiction is inaccurate. The local code has a 10% estate-transfer tax and a separate 10% gift tax, subject to exemptions, deductions and credits.","The $1 million fixed deduction applies within the resident-estate rules and does not answer every nonresident, property-location or U.S. federal question.","A tax receipt or lien-release process can be needed before an estate is distributed, property is transferred or a bank releases assets.","U.S. citizenship, domicile, U.S.-situs property and prior gifts can create federal estate or gift-tax exposure alongside the Puerto Rico rules.","H089ntr417axQPtSVJTi8wKSsgiDRgfSf-_XK2JDJio",1788594217952]