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Costa Rica
Individual - Taxes on personal income
Last reviewed - 29 December 2025Income taxes on individuals in Costa Rica are levied on local income irrespective of nationality and resident status.
For individuals domiciled in Costa Rica, any income obtained within the boundaries of Costa Rica is considered as Costa Rican-source income and is taxable. Costa Rican-source income is understood to be any income derived from assets used, goods located, or services rendered within Costa Rican territory.
Non-residents are liable only for the applicable withholding taxes (WHTs), depending on the nature of the local income.
Personal income tax rates
Self-employed individuals
Tax rates for self-employed individuals for tax year 2026, based on annual taxable income, are as follows:
| Annual taxable income (CRC*) | Tax on excess (%) | |
| Over | Not over | |
| 0 | 4,094,000 | 0 |
| 4,094,000 | 6,115,000 | 10 |
| 6,115,000 | 10,200,000 | 15 |
| 10,200,000 | 20,442,000 | 20 |
| 20,442,000 | 25 | |
* Costa Rican colones
Withholding tax (WHT) rates
| Payment | WHT rate (%) |
| Dividends | 15 |
| Interest and other financial expenses | 15 |
| Technical service and management fees, royalties, patents, trademarks, franchises, and formulas | 25 |
| Transportation and communication services | 8.5 |
| Personal services from a Costa Rican source | 25 |
| Others | 30 |
Local income taxes
None of the provinces or municipalities impose any income taxes on individuals within their jurisdiction.
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