Costa Rica Net Salary Calculator 2026
Last updated: January 2026
Net salary in Costa Rica for 2026 is calculated by deducting CCSS and income tax from gross salary, in colones (₡). Employee CCSS contributions total 10.67%: SEM 5.5% (health insurance), IVM 4.17% (disability, old age, death), and Banco Popular 1% (forced savings). Income tax applies progressively after CCSS deductions. The employer contributes 26.5% — one of the highest in Latin America. With a gross salary of ₡1,500,000/month, deductions are: CCSS ₡160,050 and income tax approximately ₡38,733, for a net salary of about ₡1,301,217. The CCSS breakdown is important: SEM covers public healthcare, IVM is the pension system, and Banco Popular builds a savings fund accessible after employment ends.
FAQ
How much is the CCSS deduction in Costa Rica?
The employee's CCSS contribution is 10.67%: SEM 5.5% (health), IVM 4.17% (pension), Banco Popular 1% (savings). On a ₡1,000,000 salary, the total CCSS deduction is ₡106,700/month. There is no salary cap on contributions.
What is the Banco Popular deduction in Costa Rica?
The Banco Popular contribution is 1% of salary, deducted from all salaried workers. These funds accumulate in a savings account at Banco Popular and can be withdrawn when the employment relationship ends or upon retirement. It functions as a forced savings mechanism.
How much does the employer pay in Costa Rica?
Employer contributions in Costa Rica total 26.5% of salary, including: CCSS SEM 9.25%, IVM 5.08%, Banco Popular 0.25%, IMAS 0.5%, INA 1.5%, plus other smaller funds. This is one of the highest employer burdens in Latin America.
How is income tax calculated on salary in Costa Rica?
After deducting 10.67% CCSS, monthly brackets apply: 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%. No annual reconciliation needed — monthly brackets are definitive.
What is the salario escolar in Costa Rica?
The salario escolar is a mandatory savings equal to 8.19% of monthly salary, deducted throughout the year and paid in a lump sum in January/February. It is exempt from income tax and helps cover school expenses. The employer withholds it and the CCSS manages the fund.