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.
Puerto Rico in plain English
Worth knowing before you move to Puerto Rico
Puerto Rico is a U.S. territory with its own tax system. Residents generally do not pay federal income tax on Puerto Rico-source income, and Act 60 offers qualifying new residents a 4% corporate rate and 0% tax on certain capital gains. Local income tax rates reach 33%. Hurricane exposure is severe, the power grid remains unreliable after Maria in 2017, and cost of living is higher than the mainland South.
What Puerto Rico taxes, and what it doesn't
Puerto Rico levies a graduated income tax that tops out at 33%. Effective rates by income are not available for Puerto Rico; this site does not yet carry its bracket table.
Property tax runs 0.83% of home value a year. The national effective rate is about 1.10%, and Puerto Rico has the 25th highest rate of the 50 states.
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.
Written from the figures on this page. Rankings compare the 50 states. Sources and years are listed with each figure below.
State Profile
Taxes
Sources: state revenue departments · Tax Foundation 2026 · income-tax brackets 2026
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Taxes
Sources: state revenue departments · Tax Foundation 2026 · income-tax brackets 2026
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.
Property Tax
Sales Tax
Social Security
Pension / IRA
Social Security benefits exempt from PR income tax
Estate Tax
Puerto Rico residents are subject to federal estate tax but not PR estate tax
Inheritance Tax
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.
Housing & Cost of Living
Sources: Zillow · Census ACS · iii.org and state insurers 2026 · WRLURI 2018 · Census 2024 (HOA)
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Housing & Cost of Living
Sources: Zillow · Census ACS · iii.org and state insurers 2026 · WRLURI 2018 · Census 2024 (HOA)
Cost of Living Index
National avg = 100
More on Puerto Rico
Politics & Gun LawsSwing · gun law grade B▾
Sources: OpenElections 2024 · Giffords 2025 · state statutes
2024 Presidential Vote
Gun Laws
Carry Permit
Purchase Permit Required
Jobs & Economy8.5% unemployment▾
Sources: BLS QCEW 2024 · BLS JOLTS 2024 · BLS union membership 2025 · Census ACS
Job Market
-0.5% job growth · 8.5% unemployment
Top Industries
Tech Jobs
Healthcare Jobs
Remote Work
Median Household Income
Daily Life▾
Sources: American Pyrotechnics Association · state statutes 2026 · IIHS
Consumer Fireworks
Check local ordinances
Weather & Natural Risks84°F avg July▾
Sources: NOAA · NWS Storm Prediction Center · FEMA NRI
Winter Severity
Avg January high: 77°F
Summer Heat
Moderate summers
Annual Rainfall
Tornado Risk
Hurricane Risk
Wildfire Risk
Flood Risk
Natural Hazards49/100 danger▾
Sources: USGS · CDC · USDA APHIS · NOAA · FEMA NRI 2023
Venomous Snakes
Spider Hazard
Scorpions
Hurricane Risk
Tornado Risk
Wildfire Risk
Earthquake Risk
Armadillo Leprosy Risk
Danger score is a composite index. Methodology ↗
See your full cost of living in Puerto Rico
Housing, taxes, childcare, insurance: all estimated.
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Guides about Puerto Rico
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 …
climate
Drought-Prone States: Where Water Scarcity Will Shape the Future
As of June 2026, more than 52% of the contiguous United States is in drought. The states most expose…
Data is informational only. Verify with a tax professional, real estate agent, and local sources before making relocation decisions. Crime data: FBI Crime Data Explorer 2023. Healthcare: Commonwealth Fund 2023; life expectancy from County Health Rankings 2024. Education: Education Week 2023. Housing: Zillow monthly index and Census ACS 2022. Insurance: rate surveys 2024. Sponsored links marked “Sponsored” may earn a commission. This does not affect our data or rankings.