← Guides / Costa Rica

Costa Rica Personal Tax Guide 2026

Costa Rica applies progressive PAYE rates on employment and personal income. Monthly thresholds: 0% up to CRC 942,000, 10% from CRC 942,001–1,411,000, 15% from CRC 1,411,001–2,117,000, 20% from CRC 2,117,001–4,233,000, and 25% above CRC 4,233,000. The tax authority is the Dirección General de Tributación (DGT).

PAYE Tax Brackets 2026 (Monthly)

Costa Rica taxes employment income on a monthly basis using progressive brackets. Employers deduct PAYE (Pay-As-You-Earn) from salaries each month. The tax year is the calendar year (January to December).

  • 0%: Up to CRC 942,000 per month
  • 10%: CRC 942,001 – CRC 1,411,000 per month
  • 15%: CRC 1,411,001 – CRC 2,117,000 per month
  • 20%: CRC 2,117,001 – CRC 4,233,000 per month
  • 25%: Above CRC 4,233,000 per month

Example: An employee earning CRC 3,000,000 per month pays: CRC 0 on the first CRC 942,000, CRC 46,900 on the slice from CRC 942,001–1,411,000 (10% of CRC 469,000), CRC 105,900 on the slice from CRC 1,411,001–2,117,000 (15% of CRC 706,000), and CRC 176,600 on the slice from CRC 2,117,001–3,000,000 (20% of CRC 883,000). Total monthly tax: CRC 329,400.

Allowable Deductions

Individual taxpayers can reduce taxable income through several deductions:

  • CCSS contributions: Employee social security (10.67%) is fully deductible
  • Banco Popular: Mandatory 1% employee contribution deductible
  • Medical expenses: Documented healthcare costs for the taxpayer and dependents
  • Education expenses: Tuition and related costs for dependents
  • Life insurance premiums: Up to certain limits
  • Mortgage interest: Interest on loans for primary residence

Filing Requirements

Individuals must file an annual tax return (D-101) if their gross income exceeds CRC 4,560,000 per year. The return is filed through the DGT's online portal (ATV — Administración Tributaria Virtual). The filing deadline is typically February 15 of the following year. Late filing penalties range from 10% to 50% of the tax due.

Related Guides

Philippines Corporate Tax Guide 2026 — 25% Standard, 20% SMEs, MCIT 1%, CREATE IncentivesPhilippine corporate income tax. Standard rate 25%, 20% for SMEs (assets ≤PHP 100M + income ≤PHP 200M), 1% MCIT (minimum corporate income tax), 15% gross income option for certain firms, and fiscal inTurkey Capital Gains Tax Guide 2026 — 0–40% on Securities & Real EstateTurkey capital gains tax (CGT). Gains on securities held <2 years taxed at IIT rates 15–40%, exempt if held >2 years. Real estate gains: 40% taxable if held <5 years, 0% if >5 years. BIST/Kiribati Tax Residency Guide: 183-Day Rule, Worldwide Income 2026Kiribati tax residency — 183-day physical presence test, residency criteria for individuals and companies, very limited DTTs, and implications for 2026.Liechtenstein Tax Residency Guide: 183-Day Rule, DTTs 2026Liechtenstein tax residency — 183-day physical presence test, residency criteria for individuals and entities, double taxation treaties with ~12 countries, and implications for 2026.Capital Gains Tax in Marshall IslandsA detailed overview of capital gains tax in the Marshall Islands, including rates, exemptions, and filing requirements for individuals and corporations.Malaysia Property Tax Guide 2026 — RPGT 0-30%, Quit Rent, Stamp Duty 1-4%Malaysian property tax. No annual property tax — only Quit Rent and Assessment paid to state/local authorities. Real Property Gains Tax (RPGT) rates 0-30% on disposal within 5 years. Stamp duty on tra
Browse all guides →