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U.S. Territory

Puerto Rico

Swing  ·  Moderate tax burden  ·  COL index 88

B+

33%

Income Tax

Notable

Act 60 (formerly Acts 20/22) offers 0% capital gains tax and 4% corporate rate for qualifying new residents. No federal income tax on Puerto Rico-source income. Major relocation incentive for high earners and investors.

State Profile

60/100
255075100TAXES71SAFETY50HEALTH50SCHOOLS50AFFORDABLE86LONGEVITY50

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Get notified when Puerto Rico tax laws, gun laws, or social policy changes.

Taxes

Income Tax

PR has its own income tax up to 33%. However, bona fide PR residents pay NO federal income tax on PR-source income. Act 60 reduces this to 4% for qualifying businesses and 0% on capital gains.

33% top

Property Tax

0.83% / yr

Sales Tax

11.5% avg

Social Security

Exempt

Pension / IRA

Social Security benefits exempt from PR income tax

Partial

Estate Tax

Puerto Rico residents are subject to federal estate tax but not PR estate tax

None

Inheritance Tax

None

Capital Gains

Under Act 60, qualifying new residents pay 0% on capital gains accrued AFTER establishing residency. Gains accrued before moving are subject to federal rates when realized.

Not taxed

Housing & Cost of Living

Cost of Living Index

National avg = 100

88

Politics & Gun Laws

2024 Presidential Vote

Swing

Gun Laws

Gun ControlB
2A LibertyD

Carry Permit

May-issue

Purchase Permit Required

Yes

Jobs & Economy

Job Market

-0.5% job growth · 8.5% unemployment

Weak

Top Industries

GovernmentTourismHealthcare

Tech Jobs

#50 of 50

Healthcare Jobs

#50 of 50

Remote Work

12% of workers

Median Household Income

$22,000

Daily Life

Consumer Fireworks

Check local ordinances

Restricted

Weather & Natural Risks

Winter Severity

Avg January high: 77°F

Very Mild

Summer Heat

Moderate summers

84°F avg July

Annual Rainfall

65" / yr

Tornado Risk

Very Low

Hurricane Risk

Moderate

Wildfire Risk

Low

Flood Risk

Moderate

Natural Hazards

49MODERATE danger
Category 5 hurricane territoryDengue and Zika vectorsEarthquake zone

Venomous Snakes

Moderate

Spider Hazard

Moderate

Scorpions

Moderate

Hurricane Risk

Extreme

Tornado Risk

Minimal

Wildfire Risk

Low

Earthquake Risk

High

Armadillo Leprosy Risk

Low

Danger score is a composite index. Methodology ↗

Veteran Benefits

Veteran-Friendly Score

6.5% of state population are veterans

20/100

Property Tax Exemption

Partial exemption for service-connected disability

Disability Only

Military Retirement Pay

Taxed

Active Duty Pay

Taxed

VA Facilities Access

Adequate

Notable Benefits

Standard federal VA benefits

See your full cost of living in Puerto Rico

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Trending in Puerto Rico

Puerto Rico governor announces emergency to fight worsening coastal erosion - PBS

PBS · May 27

Prosecutors Had a Drugs-for-Votes Scheme “Locked Up.” Under Trump, They Were Told Not to Pursue Charges. - ProPublica

ProPublica · May 5

What Taxes Are Paid in Puerto Rico and Other U.S. Territories? - Institute on Taxation and Economic Policy

Institute on Taxation and Economic Policy · Oct 14

Puerto Rico governor announces state of emergency to fight coastal erosion - The Hill

The Hill · May 27

Gentrification and the Housing Crisis in Puerto Rico - Human Rights Research Center | HRRC

Human Rights Research Center | HRRC · Mar 17

What Residents Say

Move to Puerto Rico to stretch basic fatFIRE to Ultra-fatFIRE?

Hello, have people thought about moving to Puerto Rico to stretch basic fatFIRE into Ultra-fatFIRE? As I see it, there are two stretch benefits of moving ......

reddit.com ↗

How expensive to live in PR compared to NYC, LA or ...

Sales tax is stupid high here (11.5%) which I think is higher than most states. Puerto Rico also has the highest sales tax in the U.S....

reddit.com ↗

Should I Move to Puerto Rico? : r/SameGrassButGreener

Hello, I come from a Puertorican family, matter of fact, I was raised there for most of my childhood. My entire family is over there while i’m in Central ......

reddit.com ↗

Looking for a change of pace - can I afford Puerto Rico?

My husband and I work remotely and we currently live in Minnesota (is it any wonder I’m feeling like I “need a change” in January living in MN?! ......

reddit.com ↗

Mainland US to Puerto Rico : r/IWantOut

The cost of living in Puerto Rico is a bit higher than the median cost of living in the USA and wages are a bit lower. Federal minimum wage ......

reddit.com ↗

Residency in Puerto Rico, is it worth it? : r/Rich

You don't have to pay federal income tax which would save so much money over all. Same with stocks & other stuff. You have to stay 1/2 the year in Puerto ......

reddit.com ↗

Is it cost-effective to return to Puerto Rico? : r/PuertoRico

I've been off the Island for three years. After taxes, I have $3,800 a month to spare. My job is remote. I'm single and currently live in Orlando, Florida. ......

reddit.com ↗

Moving to Puerto Rico comes with lifestyle perks and tax ...

Puerto Rico comes with lifestyle perks and tax breaks. Puerto Ricans pay a similar tax rate to any mainlander. PR paid more in Federal tax than ......

reddit.com ↗

What's it like living in Puerto Rico? : r/howislivingthere

For you guys is doable, not for us. Because you guys have better salaries overall than us, you barely pay any taxes here in the island (we do)....

reddit.com ↗

Whats it like living in Puerto Rico? : r/howislivingthere

Whats it like living on this island? Experiences living here or growing up? Is the music a big part of the culture? How do the Beaches compare to other ......

reddit.com ↗

Stay Current

Get notified when Puerto Rico tax laws, gun laws, or social policy changes.

Puerto Rico Guides

taxes

Puerto Rico Act 60: The Tax Strategy Explained

Act 60 offers qualifying U.S. citizens a 4% flat income tax rate and 0% capital gains tax on Puerto

Data is informational only. Verify with a tax professional, real estate agent, and local sources before making relocation decisions. Crime data: FBI UCR ~2022. Healthcare: Commonwealth Fund / US News ~2023. Education: Education Week ~2023. Housing: Zillow / Census ACS ~2024. Insurance: rate surveys ~2024. Sponsored links marked “Sponsored” may earn a commission. This does not affect our data or rankings.

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Quick Profiles

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Annual Income

$150K

Affects effective income tax rate

$0$500K$5M+

Retirement Savings

$0

Affects pension and SS tax burden

None$500K$10M+

Social Security

None

Annual Social Security benefit

None$150K/yr

My Property Is Worth

$400K

Affects property tax burden

Tax burden ↓$1M$50M+

Home Buying Budget

$400K

Compared to state median home price

Hard to find$250K$5M+

Monthly Rent Budget

Don't care

Compared to state median 2BR rent

Don't care$10K/mo

Job Market

Don't care

State unemployment and job growth

Don't careHot market

Airport Access

Don't care

Direct flight destinations from state hubs

Don't careMust have hub

City vs Country

Mid-size city

% urban population

Deep countryBig city

Sunshine

Don't care

Annual sunny days per state

Don't careMax sunshine

Food Scene

Don't care

Restaurants per 100K residents

Don't careWorld-class

Political Preference

Neutral

State's political lean

LiberalConservative

Gun Laws

Neutral

State gun law grade (Giffords)

Gun Control2A Freedom

Abortion Access

Neutral

State abortion access policy

Pro-ChoiceNeutralPro-Life

Community

None

Congregations per 100K residents

AvoidDon't careSeek

Sports & Entertainment

Don't care

Pro sports teams and major venues

Don't careMust have pro teams

Cannabis Laws

Neutral

State cannabis legality

Prefer LegalNeutralPrefer Prohibition

Retiree Community

Neutral

% population 65+ (Census)

Young areaRetirement-heavy

Dating Market

Neutral

% adults never-married (Census)

Singles sceneFamily community

Safety / Low Crime

Don't care

Violent crime rate per 100K (FBI)

Don't careVery safe

School Quality

Don't care

K-12 rank (Education Week)

Don't careTop-ranked

Healthcare Access

Don't care

Healthcare system rank (Commonwealth Fund)

Don't careTop-ranked

Childcare Affordability

Don't care

Cost of living proxy for childcare affordability

Don't careMust be affordable