Puerto Rico Salary Paycheck Calculator
Understanding your take-home pay in Puerto Rico is crucial for managing your finances effectively.
Our 2024 Puerto Rico Paycheck Calculator helps you estimate your salary after taxes and deductions, giving you a clear picture of what you’ll actually bring home each pay period.
Gross To Net Calculator
The amount that remains after these deductions are considered your net pay.
Puerto Rico Taxes: What You Need to Know
When working or running a business in Puerto Rico, you are subject to various tax regulations, both at the federal and local levels. Here’s a breakdown of what you need to know regarding Federal, State, and Local Tax Withholding, FICA and State Insurance Taxes, and Pre-Tax Deductions.
Federal, State, and Local Tax Withholding
Employers in Puerto Rico are required to withhold income tax at the source of salaries and wages paid to employees performing services in Puerto Rico. This tax is withheld based on individual employee information such as personal exemptions and credits for dependents, which are indicated on their Withholding Exemption Certificate (Form 499R4-1).
Additionally, employers must register with the Puerto Rico Treasury Department and deposit income taxes on a monthly or semiweekly basis, depending on the amount withheld during the lookback period. The deposits are made using Form 499R-1 and Form 499R-1B.
Income Tax Withholding Methods
| Withholding Method | Description |
| Percentage Method | Income tax is calculated based on a percentage of an employee’s taxable wages. |
| Wage Bracket Method | Tax is calculated based on pre-determined tax brackets published by the Puerto Rico Treasury Department. |
Source: https://hacienda.pr.gov/sites/default/files/tablas_retencion_2017_2.pdf
Federal Insurance Contributions Act (FICA) & State Insurance Taxes
Puerto Rico, being part of the U.S. Social Security system, requires both employees and employers to contribute to Social Security and Medicare taxes under the Federal Insurance Contributions Act (FICA). In addition to FICA, there are other payroll taxes borne by employers and employees in Puerto Rico, including State Insurance Taxes.
FICA Breakdown
| Tax Type | Employee Rate | Employer Rate | Total Rate |
| Social Security | 6.2% | 6.2% | 12.4% |
| Medicare | 1.45% | 1.45% | 2.9% |
Source: https://www.irs.gov/taxtopics/tc903
For employees earning over $200,000 per year, an additional Medicare tax of 0.9% is applied, which the employer must withhold. This tax applies only to the employee’s portion and does not have an employer match.
Puerto Rico also has payroll taxes specific to local laws, including unemployment insurance and worker’s compensation. Employers must contribute towards these funds and file quarterly or annually as required.
Puerto Rico Payroll Taxes Breakdown
| Payroll Tax Type | Employee Rate | Employer Rate | Frequency of Payment |
| FICA taxes | 6.2% &1.45% | 6.2% &1.45% | Quarterly (Form 941) |
| Disability Benefits Tax | Varies by income | N/A | Quarterly |
| Chauffeur’s Employment Security Tax | Varies by Occupation | Varies | Quarterly |
| Unemployment Insurance (Federal & PR) | N/A | Varies | Annually |
| Workmen’s Accident Compensation | N/A | Varies | Annually |
Pre-Tax Deductions
Pre-tax deductions reduce an employee’s taxable income and provide tax-advantaged benefits such as medical insurance, retirement plans, and other deductions like contributions to 401(k) plans.
Common pre-tax deductions include:
- Health Insurance Premiums
- 401(k) Retirement Contributions
- Flexible Spending Accounts (FSAs)
- Health Savings Accounts (HSAs)
Examples of Pre-Tax Deductions:
| Deduction Type | Contribution Source | Taxable Income Reduction |
| Medical Insurance | Employee/Employer | Reduces taxable income by premium amount. |
| 401(k) Contributions | Employee/Employer | Reduces taxable income by the contribution amount up to the IRS limit. |
| FSA/HSA Contributions | Employee/Employer | Contributions lower taxable income and can be used for medical expenses. |
Median Household Income in Puerto Rico
Puerto Rico’s income landscape highlights significant economic challenges, particularly when compared to the U.S. mainland. In 2024, the disparity in household incomes remains stark, with average and median incomes in Puerto Rico falling far behind national figures. Below is an in-depth look at these income statistics.
Average Household Income
Puerto Rico: $38,227
The average household income in Puerto Rico stands at $38,227, which is 64% lower than the U.S. national average of $105,833. This considerable gap reflects the broader economic challenges faced by many Puerto Rican households.
Median Household Income
Puerto Rico: $24,002
Puerto Rico’s median household income is $24,002, making it 68% lower than the U.S. national median of $75,149. With a median income that falls significantly below the U.S. poverty line of $27,750, many Puerto Rican households face financial hardships.
Poverty Line
The poverty threshold for households is consistent across Puerto Rico and the U.S. at $27,750 for a household of four. However, in Puerto Rico, the median household income falls short of this line, highlighting the widespread financial difficulties for a large portion of the population.
Richest Zip Codes in Puerto Rico
While income levels in Puerto Rico are generally low compared to the rest of the U.S., certain areas still exhibit higher-than-average earnings. Below are the 10 richest zip codes in Puerto Rico, ranked by mean household income, based on the most recent 2022 Census data:
| Zip Code | Population | Mean Income | Median Household Income |
| 00907 | 16,607 | $89,703 | $40,293 |
| 00968 | 3,554 | $89,447 | $55,132 |
| 00966 | 16,451 | $87,665 | $51,732 |
| 00969 | 41,784 | $86,027 | $55,929 |
| 00911 | 7,087 | $83,261 | $38,125 |
| 00901 | 8,220 | $78,916 | $27,926 |
| 00927 | 13,766 | $68,617 | $40,213 |
| 00778 | 40,476 | $65,490 | $39,484 |
| 00918 | 15,976 | $63,655 | $35,000 |
| 00926 | 93,751 | $61,833 | $38,432 |
These zip codes represent the wealthier enclaves of Puerto Rico, with mean incomes significantly higher than the island’s average. However, the disparity within these zip codes is apparent, with median household incomes often far lower than the mean income, suggesting pockets of wealth amid broader income inequality.
Puerto Rico Income Distribution Insights
The income distribution in Puerto Rico reflects both low earnings and a limited number of high-income households. Here are key insights:
Per Capita Income: $15,637
The per capita income in Puerto Rico is markedly low at $15,637, underscoring the limited economic resources available to individuals compared to the U.S. per capita income.
High-Income Households: 1.4%
Only 1.4% of households in Puerto Rico earn more than $200,000 per year, reflecting a small percentage of the population enjoying high income levels. This contrasts sharply with the U.S. mainland, where the percentage of high-income households is significantly higher.
Median Household Income by Age of Householder
Household income in Puerto Rico varies depending on the age of the head of the household, with younger and older groups earning significantly less:
| Age Group | Median Household Income |
| Under 25 years | $9,603 |
| 25 to 44 years | $26,863 |
| 45 to 64 years | $28,626 |
| 65 years and over | $20,099 |
In 2024, Puerto Rico continues to face substantial economic disparities, with average and median household incomes significantly trailing behind U.S. figures. While a few wealthier zip codes exist, the majority of Puerto Rican households struggle to earn enough to meet the poverty threshold. The income distribution also shows a wide gap between the small percentage of high-income earners and the vast majority who earn much less, further emphasizing the economic challenges on the island.
Puerto Rico Tax Brackets 2024
Puerto Rico’s personal income tax rates for 2024 continue to follow a progressive structure, with rates ranging from 0% to 33%. These tax brackets apply to individual income, and the highest marginal tax rate is applied to the top income earners. The Puerto Rican tax system collects revenue from various sources, including wages, pensions, interest, and dividends, which are critical for the government’s operations. Below is a breakdown of the 2024 tax brackets for various filing statuses.
2024 Puerto Rico Personal Income Tax Brackets
| Income Range | Tax Rate |
| $0 – $12,000 | 0% |
| $12,001 – $26,000 | 7% |
| $26,001 – $42,750 | 14% |
| $42,751 – $62,750 | 25% |
| Over $62,750 | 33% |
The above brackets apply to individual taxpayers, married taxpayers filing jointly, married taxpayers filing separately, and estates and trusts, with slight variations in the exemptions. For example:
- Married Filing Jointly & Surviving Spouses: These taxpayers enjoy a personal exemption of $7,000, and the same tax rate structure is applied based on their income.
- Married Filing Separately: With a personal exemption of $3,500, this filing status follows the same bracket structure but splits income differently between spouses.
Corporate Tax Rate in Puerto Rico
The corporate tax rate in Puerto Rico stands at 37.5% as of 2024. This applies to corporate income earned within Puerto Rico. As with personal income tax, this rate plays a crucial role in government revenue.
2024 Social Security and Medicare Rates
For Puerto Rican taxpayers, Social Security and Medicare rates mirror the U.S. federal rates:
- Social Security Tax Rate for Employers and Employees: 6.2% on earnings up to $168,600.
- Medicare Tax Rate for Employers and Employees: 1.45%, with no earnings limit.
- Self-Employed Tax Rate: 12.4% for Social Security and 2.9% for Medicare.
Additionally, there is an Additional Medicare Tax of 0.9% for individuals with wages exceeding $200,000 or joint filers with wages over $250,000. Furthermore, a Net Investment Income Tax of 3.8% is imposed on taxpayers with a modified adjusted gross income exceeding $200,000 for single filers or $250,000 for joint filers.
A few key points to remember:
- The top personal income tax rate in Puerto Rico for 2024 is 33%.
- Tax rates are applied progressively based on income, with a variety of filing statuses and exemption levels.
- Puerto Rico’s corporate tax rate is 37.5%.
- Social Security and Medicare taxes follow U.S. federal guidelines with additional taxes for high-income earners.
Wrapping It Up
Navigating Puerto Rico’s tax brackets and understanding deductions can feel like a maze, but that’s where our Puerto Rico Paycheck Calculator comes in handy. It’s not just about crunching numbers; it’s about giving you a clear view of what your take-home pay will be after taxes, deductions, and other withholdings. Whether you’re curious about how the latest tax rates will impact your paycheck or simply planning for the future, our calculator provides a quick and easy way to stay on top of your earnings.
Why stress over tax season when you can have a tool that simplifies it all? Use the Puerto Rico Paycheck Calculator to ensure you’re always in control of your finances. It’s precise, user-friendly, and designed to help you make the most informed financial decisions. Ready to get started? Let’s calculate your paycheck today!
Frequently Asked Questions
Yes, the Puerto Rico Paycheck Calculator is designed to account for Puerto Rico’s unique tax structure, including local taxes such as municipal surcharges. It ensures that your paycheck estimates are accurate by incorporating these local tax rates into the calculation.
Absolutely. In Puerto Rico, specific deductions include the personal exemption, dependent credits, and contributions to qualified retirement plans. These are automatically factored into the Puerto Rico Paycheck Calculator to provide an accurate reflection of your take-home pay.
Yes, the Puerto Rico Paycheck Calculator is updated regularly to ensure it reflects the most recent tax laws and regulations. This includes updates on tax brackets, deductions, and exemptions for the latest tax year.
Puerto Rico has its own tax system that operates separately from the U.S. federal tax system. While federal taxes don’t typically apply to Puerto Rican residents’ local income, the Puerto Rico Paycheck Calculator focuses specifically on the local tax rules. Keep in mind that if you have U.S. federal tax obligations, these would be calculated separately.
The Puerto Rico Paycheck Calculator allows you to input your income from multiple jobs or additional income sources. You can include your total earnings from all sources, and the calculator will factor in the appropriate tax rates and deductions accordingly to give you a comprehensive estimate.
