Dominican Republic Income Tax Calculator 2026
Last updated: January 2026
The Income Tax (ISR) in the Dominican Republic for 2026 is calculated with progressive brackets established by the DGII. The first RD$416,220 annually is exempt (adjusted annually for inflation). Brackets are: RD$416,221-RD$624,329 at 15%, RD$624,330-RD$867,123 at 20%, and over RD$867,123 at 25%. Employee social security (SFS 3.04% + AFP 2.87% = 5.91%) is deducted before tax calculation. The employer contributes SFS 7.09% + AFP 7.10% + SRL 1.2% = 15.39%. ISR is withheld monthly by the employer. The Dominican Republic uses a 23.83-day divisor for daily salary calculations — unique in the region. Christmas salary (salario de Navidad) has partial ISR exemption.
FAQ
What are the ISR brackets in the Dominican Republic 2026?
DR brackets: up to RD$416,220 annually exempt, RD$416,221-RD$624,329 at 15%, RD$624,330-RD$867,123 at 20%, over RD$867,123 at 25%. These thresholds are adjusted annually for inflation by the DGII.
What are the social security deductions in the DR?
Employee deductions total 5.91%: SFS 3.04% (health insurance) and AFP 2.87% (pension fund). These are deducted before ISR calculation. The employer contributes 15.39%: SFS 7.09%, AFP 7.10%, and SRL 1.2% (workplace risk).
How is ISR withheld monthly in the Dominican Republic?
The employer calculates projected annual ISR using the progressive brackets after social security deductions, then divides by 12 for monthly withholding. The DGII provides monthly withholding tables. Year-end reconciliation determines if additional tax is owed or a refund is due.
Is the Christmas salary (salario de Navidad) taxable?
The Christmas salary in the DR has a partial ISR exemption: the portion up to 5 times the minimum monthly wage is exempt. Only the excess above this threshold is subject to ISR. This makes the exemption significant for most workers.
What income is exempt from ISR in the DR?
ISR-exempt in the DR: income under RD$416,220/year, Christmas salary (up to 5× minimum wage), severance pay, disability benefits from social security, and contributions to authorized pension plans. The annual exemption is inflation-adjusted.