Income Tax Calculator Puerto Rico

Qualified children for the eitc must be dependants under age 19 full time dependant students under age 24 or fully disabled children of any age.

Income tax calculator puerto rico. Earned income credit payment received by a taxpayer. Notably puerto rico has the highest maximum marginal tax bracket in the united states. Income from personal services performed within puerto rico will not be considered from puerto rican sources if it is usd 3 000 or less and the individual was present in puerto rico for 90 days or less during the calendar year. The veteran s exemption is usd 1 500.

According to the pew research center two thirds of people in the states who earn 30 000 or less per year pay no income tax the average income in puerto rico in 2018 was roughly 20 078 which means that most puerto ricans would not have had to pay federal income taxes even if the federal law applied to the territory. Interest income exemption for deposit accounts from institutions located in puerto rico was reduced from usd 2 000 to usd 100 per individual from usd 4 000 to usd 200 for married taxpayers filing a joint tax return. Puerto rico collects a state income tax at a maximum marginal tax rate of spread across tax brackets. You can learn more about how the puerto rico income tax compares.

The earned income tax credit or eitc is a refundable tax credit for lower to middle income working families that is largely based on the number of qualifying children in your household. Puerto rico has a de minimis rule to avoid sourcing to puerto rico very small amounts of income from personal services. Puerto rico employers are required to withhold from their employees certain payroll taxes in addition to the withholding for income tax. Unlike the federal income tax puerto rico s state income tax does not provide couples filing jointly with expanded income tax brackets.

Social security and medicare taxes disability benefits tax and chauffeur s and other employees employment security tax. Puerto rico income tax rate. The income tax department appeals to taxpayers not to respond to such e mails and not to share information relating to their credit card bank and other financial accounts. Estimate your income taxes for regular income with the puerto rico income tax rates table.

The personal exemption for 2018 and future tax years is usd 3 500 per individual and usd 7 000 for married tax payers living together and filing jointly. You only need to earn 60 000 to land yourself in the highest earning category which is subject to a tax rate of 33. Puerto rico s tax table is fairly simple but the important thing to note is that the threshold for high earners is much lower than in the us. These payroll taxes are.

Rates were updated in 2015 and remain in effect. The income tax department never asks for your pin numbers passwords or similar access information for credit cards banks or other financial accounts through e mail.