#CostaRica 🇨🇷 #APriori_Informs: Updated Income Tax Brackets for Legal Entities and Individuals Applicable in 2026 Published

Written by APriori | Dec 19, 2025 2:53:27 PM

On Friday, December 5, an Executive Decree was published, updating the income tax brackets and tax credits for legal entities and individuals for the year 2026.

Through Executive Decree No. 45333-H, the income tax brackets applicable to legal entities and individuals, as established in Article 15, subsections (b) and (c) of the Income Tax Law, are amended with a downward adjustment of minus zero point thirty-eight percent (-0.38%).

Accordingly, the tax brackets for legal entities whose gross income does not exceed one hundred nineteen million one hundred seventy-four thousand colones (¢119,174,000.00) during the fiscal period are established as follows:

a. 5% on the first five million six hundred twenty-one thousand colones (¢5,621,000.00) of annual net income.
b. 10% on the excess over five million six hundred twenty-one thousand colones (¢5,621,000.00) and up to eight million four hundred thirty-three thousand colones (¢8,433,000.00) of annual net income.
c. 15% on the excess over eight million four hundred thirty-three thousand colones (¢8,433,000.00) and up to eleven million two hundred forty-three thousand colones (¢11,243,000.00) of annual net income.
d. 20% on the excess over eleven million two hundred forty-three thousand colones (¢11,243,000.00) of annual net income.

With respect to individuals, the tax brackets are established as follows:

a. Annual income of up to six million two hundred forty-four thousand colones (¢6,244,000.00) will be exempt.
b. On the excess over six million two hundred forty-four thousand colones (¢6,244,000.00) per year and up to eight million three hundred twenty-nine thousand colones (¢8,329,000.00) per year, a rate of 10% will apply.
c. On the excess over eight million three hundred twenty-nine thousand colones (¢8,329,000.00) per year and up to ten million four hundred fourteen thousand colones (¢10,414,000.00) per year, a rate of 15% will apply.
d. On the excess over ten million four hundred fourteen thousand colones (¢10,414,000.00) per year and up to twenty million eight hundred seventy-two thousand colones (¢20,872,000.00) per year, a rate of 20% will apply.
e. On the excess over twenty million eight hundred seventy-two thousand colones (¢20,872,000.00) per year, a rate of 25% will apply.

Regarding tax credits applicable to individuals engaged in profit-generating activities, the amendment also entails an adjustment of minus zero point thirty-eight percent (-0.38%), resulting in the following amounts:

a) For each child, the annual tax credit will be twenty thousand five hundred twenty colones (¢20,520.00), which results from multiplying by twelve (12) the monthly amount provided for in subsection (i) of Article 34 of this Law.
b) For the spouse, the annual tax credit shall be thirty-one thousand eighty colones (¢31,080.00), which results from multiplying by twelve (12) the monthly amount provided for in subsection (ii) of Article 34 of this Law.

This Decree was published in the Official Gazette La Gaceta No. 229 on Friday, December 5, 2025, and repeals Executive Decree No. 44772-H, dated November 7, 2024.

The income tax provisions set forth herein enter into force as of January 1, 2026.

Please contact us if you have any further questions or need legal advice regarding this matter.

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