Costa Rica Income Tax Calculator 2026
Last updated: January 2026
The Income Tax (Impuesto sobre la Renta) for salaried workers in Costa Rica for 2026 is calculated with progressive brackets established by the Ministry of Finance. The first ₡11,112,000 annually (₡926,000/month) is exempt. Brackets are: ₡926,001-₡1,363,000/month at 10%, ₡1,363,001-₡2,392,000/month at 15%, ₡2,392,001-₡4,783,000/month at 20%, and over ₡4,783,000/month at 25%. Employee social security (CCSS) at 10.67% (SEM 5.5%, IVM 4.17%, Banco Popular 1%) is deducted before tax calculation. The employer contributes 26.5% of salary to social security and other funds. Costa Rica has one of the highest combined employer contribution rates in Latin America.
FAQ
What are the income tax brackets in Costa Rica 2026?
Costa Rica monthly brackets: up to ₡926,000 exempt, ₡926,001-₡1,363,000 at 10%, ₡1,363,001-₡2,392,000 at 15%, ₡2,392,001-₡4,783,000 at 20%, over ₡4,783,000 at 25%. These apply after CCSS deductions.
What is the CCSS employee deduction in Costa Rica?
The CCSS employee contribution totals 10.67% of salary: SEM 5.5% (health insurance), IVM 4.17% (disability, old age, death), and Banco Popular 1% (forced savings). This is deducted before income tax calculation. The employer contributes 26.5%.
What is the minimum wage in Costa Rica 2026?
Costa Rica has differentiated minimum wages by occupation: unskilled workers ₡376,225/month, semi-skilled ₡410,830/month, skilled ₡425,255/month, technicians ₡476,610/month, and university graduates ₡614,242/month. Rates are set by the National Wages Council.
How is income tax withheld monthly in Costa Rica?
The employer applies the monthly brackets directly to the salary after CCSS deductions. Since Costa Rica uses monthly brackets (not annual), the calculation is straightforward — no need to project annual income and divide. This simplifies both withholding and reconciliation.
What income is exempt from renta in Costa Rica?
Exempt from income tax in Costa Rica: aguinaldo (Christmas bonus), severance pay, retirement pensions from mandatory systems, CCSS disability benefits, and income below ₡926,000/month. Salario escolar (school bonus) is also exempt.