Costa Rica Income Tax (ISR) Calculator: Complete Guide 2026
The Income Tax (ISR) for employees in Costa Rica is administered by the Ministry of Finance (Hacienda) and is calculated monthly on the worker's gross salary. Costa Rica uses a progressive bracket system ranging from 0% to 25%.
How Does ISR Work for Employees in Costa Rica?
Costa Rica's ISR for salaried workers is withheld directly from the salary by the employer. Unlike other countries where the calculation is annual, in Costa Rica the calculation is monthly, simplifying the process for workers.
Costa Rica ISR Brackets 2024 (Hacienda)
The current brackets established by the Ministry of Finance are:
| Bracket | Monthly Range | Rate | |---------|-------------|------| | 1 | Up to ₡942,000 | 0% | | 2 | ₡942,001 – ₡1,413,000 | 10% | | 3 | ₡1,413,001 – ₡2,357,000 | 15% | | 4 | ₡2,357,001 – ₡4,715,000 | 20% | | 5 | Above ₡4,715,000 | 25% |
ISR brackets are updated annually by the Ministry of Finance, typically at the start of the fiscal year. Always verify current amounts on the official Hacienda website.
Calculation Formula
ISR is calculated by applying each rate only to the excess within each bracket:
ISR = 0% × (first ₡942,000)
- 10% × (excess up to ₡1,413,000)
- 15% × (excess up to ₡2,357,000)
- 20% × (excess up to ₡4,715,000)
- 25% × (excess above ₡4,715,000)
Practical Example
Monthly salary of ₡1,500,000:
- Exempt bracket (₡942,000): ₡0
- 10% bracket (₡471,000): ₡47,100
- 15% bracket (₡87,000): ₡13,050
- Monthly ISR: ₡60,150
- Effective rate: 4.01%
High Salary Example
Monthly salary of ₡3,000,000:
- Exempt bracket (₡942,000): ₡0
- 10% bracket (₡471,000): ₡47,100
- 15% bracket (₡944,000): ₡141,600
- 20% bracket (₡643,000): ₡128,600
- Monthly ISR: ₡317,300
- Effective rate: 10.58%
Applicable Deductions
Employees in Costa Rica can benefit from deductions for:
- Dependents: dependent spouse and minor or student children
- CCSS contributions: contributions to the Costa Rican Social Security Fund
- Tax credits: for donations to authorized institutions
Each dependent (spouse or child) generates a monthly tax credit that is subtracted directly from the calculated ISR. Make sure to report your dependents to your HR department.
Who Must Pay ISR?
Every salaried worker whose monthly income exceeds the exempt amount (currently ₡942,000) is subject to ISR. The employer acts as a withholding agent and is responsible for:
- Calculating each employee's monthly ISR
- Withholding the corresponding amount from the salary
- Filing and paying to the Ministry of Finance
Social Security Contributions
In addition to ISR, Costa Rican workers have social security deductions:
| Item | Worker contribution | |------|-------------------| | CCSS (health and maternity) | 5.50% | | IVM (disability, old age, death) | 4.17% | | Banco Popular | 1.00% | | Total | 10.67% |
When adding ISR and social security deductions, the total burden can be significant. Use this calculator to plan your personal finances precisely.
Frequently Asked Questions
Brackets are updated annually, typically in January, by resolution of the Ministry of Finance. Amounts are adjusted based on the Consumer Price Index variation.
The aguinaldo in Costa Rica is exempt from ISR up to an amount equivalent to one average monthly salary. Any excess may be subject to withholding.
You must present the D-101 form to your employer with your dependents' information (spouse and children). The employer applies the corresponding credits when calculating your monthly ISR.
No. Self-employed workers in Costa Rica pay taxes under a different regime with different rates and rules. This calculator applies specifically to the employee regime.
Yes. If more ISR was withheld than due (for example, because dependent credits were not applied), you can request a refund from the Ministry of Finance with the corresponding documentation.