New income tax brackets for 2026
New income tax brackets for 2026
News written by Gustavo Porras, Tax Senior.
As of January 1, 2026, new income tax brackets and credits come into force in Costa Rica, according to the recent decree of the Executive Branch No. 45333-H, published in La Gaceta No. 229 of this Friday, December 5. These are the amounts that will begin to be applied.
Wage tax
| Monthly amount | Tax rate |
|---|---|
| Monthly rent of up to ¢918,000 | Exempt |
| On the excess of ¢918.000 and up to ¢1.347.000 | 10% |
| On the excess of ¢1.347.000 and up to ¢2.364.000 | 15% |
| On the excess of ¢2.364.000 and up to ¢4.727.000 | 20% |
| On the excess of ¢4.727.000 | 25% |
Tax credits for employees
- Monthly credit for each child: ¢1.710
- Monthly credit per spouse: ¢2.590
Legal entities
The gross income limit is updated to apply a staggered rate to ¢119,174,000 per year.The following rates apply to the annual net income:
| Annual amount | Tax rate |
|---|---|
| Up to ¢5.621.000 | 5% |
| On the excess of ¢5.621.000 and up to ¢8.433.000 | 10% |
| On the excess of ¢8.433.000 and up to ¢11.243.000 | 15% |
| On the excess of ¢11.243.000 | 20% |
Individuals with business activities
| Annual amount | Tax rate |
|---|---|
| Up to ¢6.244.000 | Exempt |
| On the excess of ¢6.244.000 and up to ¢8.329.000 | 10% |
| On the excess of ¢8.329.000 and up to ¢10.414.000 | 15% |
| On the excess of ¢10.414.000 and up to ¢20.872.000 | 20% |
| On the excess of ¢20.872.000 | 25% |
Tax credits for individuals with business activities
- Annual credit for each child: ¢20.520
- Annual credit per spouse: ¢31.080
These changes reflect the adjustment for the Consumer Price Index and the reform introduced by Law 10667 for lower-income self-employed workers. It is recommended that salaried employees, independent professionals and companies review their projections for income tax, withholdings, and partial payments for 2026 based on these new tax brackets and credits.