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New Income Tax Brackets for 2026 in Costa Rica
Starting in fiscal year 2026, new Income Tax brackets will come into effect in Costa Rica as part of the annual adjustment carried out by the Ministry of Finance based on changes in the consumer price index and current legal provisions. This update aims to preserve the progressive nature of the tax system and adjust taxable income ranges for both salaried individuals and those earning income from self-employment or independent professional activities.
The modification of these brackets has a direct impact on the calculation of both monthly withholdings and annual tax liabilities. For this reason, it is essential for employees, independent professionals, and companies to understand how the new thresholds and rates apply. Being aware of these changes enables better financial and tax planning, helps prevent errors in withholdings or tax returns, and supports informed decision-making in preparation for the fiscal year-end and projections for the 2026 tax period.
Salary Income Tax 2026 (Salaried Individuals)
These brackets apply to the gross monthly salary and are calculated progressively (taxed on the excess within each bracket).
| Monthly bracket (gross salary) | Rate |
|---|---|
| Up to ¢918,000.00 | Exempt (0%) |
| Excess over ¢918,000.00 up to ¢1,347,000.00 | 10% |
| Excess over ¢1,347,000.00 up to ¢2,364,000.00 | 15% |
| Excess over ¢2,364,000.00 up to ¢4,727,000.00 | 20% |
| Excess over ¢4,727,000.00 | 25% |
Monthly tax credits (tax deductions):
Per child: ¢1,710.00
Per spouse: ¢2,590.00
Individuals with Business Activity 2026 (Self-Employed)
For individuals with business or professional activity, the brackets apply to the annual net income (income minus allowable expenses).
| Annual bracket | Rate |
|---|---|
| Up to ¢6,244,000.00 | Exempt (0%) |
| Excess over ¢6,244,000.00 up to ¢8,329,000.00 | 10% |
| Excess over ¢8,329,000.00 up to ¢10,414,000.00 | 15% |
| Excess over ¢10,414,000.00 up to ¢20,872,000.00 | 20% |
| Excess over ¢20,872,000.00 | 25% |
Annual tax credits:
Per child: ¢20,520.00
Per spouse: ¢31,080.00
Legal Entities 2026 (Companies)
This progressive scale applies to micro, small, and medium-sized companies whose annual gross income does not exceed ¢119,174,000.00.
| Annual net income bracket | Rate |
|---|---|
| On the first ¢5,621,000.00 | 5% |
| Excess over ¢5,621,000.00 up to ¢8,433,000.00 | 10% |
| Excess over ¢8,433,000.00 up to ¢11,243,000.00 | 15% |
| Excess over ¢11,243,000.00 | 20% |
- Note: If annual gross income exceeds ¢119,174,000.00, a flat 30% tax rate applies to the total net taxable income.
How can Asicon Consulting support you?
At Asicon Consulting Costa Rica, we have a specialized team in Income Tax preparation, filing, and tax planning for salaried individuals, self-employed professionals, and companies. We provide comprehensive support in income analysis, correct application of tax brackets and rates, validation of tax credits, accounting reconciliation, and timely filing of tax returns with the Ministry of Finance. Our approach enables your organization to remain compliant with tax regulations, minimize fiscal risks, and make informed decisions for the closing and projection of the 2026 fiscal period.
At Asicon Consulting, we work to ensure that your business and professional activity maintain accurate and up-to-date tax compliance with Income Tax regulations. We support you in the preparation, review, and submission of tax returns, as well as in the tax planning required to optimize your tax burden within the current legal framework. If you would like to learn more about our services or receive specialized advice, we are at your disposal.
