Costa Rica’s Ministry of Finance has published the new income tax brackets applicable to salaries, legal entities, and individuals engaged in profit-generating activities, which will be in force from January 1 through December 31, 2026.
In accordance with the Income Tax Law (Law No. 7092), these adjustments are made annually at the start of each fiscal year.
Tax on salaries
| Applicable rate | Fiscal year 2026 |
| 0 % | Up to ₡918.000,00 |
| 10 % | On the excess over ₡918.000,00 up to ₡1.347.000,00 |
| 15 % | On the excess over ₡1.347.000,00, up to ₡2.364.000,00 |
| 20 % | On the excess over ₡2.364.000,00 up to ₡4.727.000,00 |
| 25 % | On the excess over ₡4.727.000,00 |
Tax credits applicable to the calculation of salary income tax
| Tax credit | Fiscal year 2026 |
| Per child | ₡1.710,00 |
| For spouse | ₡2.590,00 |
Corporate income tax (legal entities)
The new brackets apply to taxpayers whose annual gross income does not exceed ₡119,174,000, slightly below the 2025 threshold of ₡119,629,000.
| Applicable rate | 2026 |
| 5 % | Up to ₡5,621,000.00 of annual net income |
| 10 % | On the excess over ₡5,621,000.00 up to ₡8,433,000.00 of annual net income |
| 15 % | On the excess over ₡8,433,000.00 up to ₡11,243,000.00 of annual net income |
| 20 % | On the excess over ₡11,243,000.00 of annual net income |
Income tax for individuals with profit-generating activities
A key change in this category is the increase in the tax-exempt bracket, which rises from ₡4,094,000 to ₡6,244,000, expanding the minimum income not subject to taxation.
| Applicable rate | 2026 |
| 0 % | Up to ₡6.244.000,00 |
| 10 % | On the excess over₡6.244.000,00 up to ₡8.329.000,00 |
| 15 % | On the excess over 8.329.000,00 up to ₡10.414.000,00 |
| 20 % | On the excess over ₡10.414.000,00 up to ₡20.872.000,00 |
| 25 % | On the excess over ₡20.872.000,00 |
Tax credits applicable to income tax for individuals with profit-generating activities
| Tax credit | 2026 |
| Per child | ₡20.520,00 annually |
| For spouse | ₡31.080,00 annually |
More information:
GarciaBodan Costa Rica
T: +506 4001 6878