Question 1

How does income tax work in Costa Rica?

Accepted Answer

Income tax for employees in Costa Rica is calculated monthly with progressive brackets ranging from 0% to 25%, as established by the Ministry of Finance (Hacienda).

Question 2

What are the 2024 ISR brackets for employees in Costa Rica?

Accepted Answer

Monthly brackets: 0% up to ₡942,000; 10% on ₡942,001–1,413,000; 15% on ₡1,413,001–2,357,000; 20% on ₡2,357,001–4,715,000; 25% above ₡4,715,000.

Question 3

Who must pay ISR in Costa Rica?

Accepted Answer

Every salaried worker earning more than ₡942,000/month must pay income tax. The employer withholds the tax directly from the salary.

Question 4

What deductions apply to Costa Rica ISR?

Accepted Answer

Employees can deduct dependents (spouse and dependent children) and CCSS contributions. This calculator shows the base tax without additional deductions.

Question 5

When is Costa Rica ISR updated?

Accepted Answer

ISR brackets are updated annually by the Ministry of Finance, typically at the beginning of each fiscal year.

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