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U.S. Territory

Puerto Rico

Swing  ·  High tax burden  ·  COL index 88

D

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

54/100
255075100TAXES36SAFETY50HEALTH50SCHOOLS50AFFORDABLE86LONGEVITY50

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

See your full cost of living in Puerto Rico

Housing, taxes, childcare, insurance — all estimated.

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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.