Act 60 Tax Calculator
Compare US federal taxes vs. Puerto Rico's Act 60 incentives for investors and export service businesses.
On assets acquired after becoming a resident
For eligible export service businesses
On dividends from PR sources
Annual Income
"Reasonable salary" required for Act 60
Effective Tax Rate: 0.0%
Act 60 Requirements
- 183+ days physical presence in PR annually
- Purchase primary residence within 2 years
- $10,000 annual charitable contribution
- $5,000 annual report filing fee
Understanding Puerto Rico Act 60
Puerto Rico Act 60 (previously Acts 20/22) offers significant tax incentives for individuals and businesses that relocate to the island. For qualifying investors, capital gains on assets acquired after becoming a bona fide resident are taxed at 0%. Export service companies enjoy a fixed 4% corporate tax rate.
Is Act 60 Right for You?
The incentives are most valuable for those with significant capital gains, dividend income, or export service businesses. However, you must commit to genuine residency in Puerto Rico, including purchasing a home and spending the majority of your time on the island.
About This Calculator
Calculate your potential tax savings by moving to Puerto Rico under Act 60. Compare US tax rates vs PR 0% capital gains and 4% corporate tax.
Frequently Asked Questions
What is Act 60?
Puerto Rico Act 60 (formerly Act 20/22) provides tax incentives to attract new residents and businesses, offering 0% capital gains tax and 4% corporate tax rates.
How accurate is the Act 60 Tax Calculator for my specific situation?
The Act 60 Tax Calculator provides estimates based on standard financial formulas and 2025 rates. Results are most accurate when you input precise figures for your situation. For complex scenarios involving multiple income sources, unusual deductions, or state-specific rules, consult a certified financial planner or CPA. The calculator uses industry-standard assumptions but cannot account for every individual variable such as employer-specific benefits, local tax ordinances, or recent life changes that may affect your results.
What inputs do I need to use the Act 60 Tax Calculator effectively?
For the most accurate results, gather the following before using the calculator: your current income and tax filing status, any relevant account balances or loan amounts, interest rates on current debts or investments, expected time horizon for your financial goal, and any applicable fees or penalties. Having your most recent tax return, pay stubs, and account statements handy will help you input precise numbers rather than estimates, which significantly improves the accuracy of the calculation.
How often should I recalculate using the Act 60 Tax Calculator?
Review your calculations at least quarterly or whenever you experience a significant financial change such as a salary increase, job change, new debt, marriage, or tax law updates. Annual recalculation is the minimum recommended frequency, ideally during tax season when you have complete prior-year data. Interest rates, contribution limits, and tax brackets change annually — using outdated figures can lead to suboptimal financial decisions. Set a calendar reminder to review your numbers each January when new IRS limits take effect.
Can I use the Act 60 Tax Calculator for tax planning purposes?
Yes, this calculator is designed to help with tax planning and financial analysis. However, it provides estimates and should not replace professional tax advice. The calculations use 2025 federal tax brackets and standard deduction amounts. State-specific taxes, credits, and deductions may vary significantly. For tax-sensitive decisions like Roth conversions, capital gains harvesting, or retirement distributions, consider running multiple scenarios with different assumptions and discussing the results with a qualified tax professional before making final decisions.
Who qualifies for Act 60 tax benefits in Puerto Rico?
Act 60 (formerly Acts 20/22) offers significant tax incentives to individuals and businesses that relocate to Puerto Rico. Individual investors can qualify for 0% capital gains tax on gains accrued after becoming a bona fide resident. Export service businesses can receive a 4% corporate tax rate. To qualify, you must spend at least 183 days per year in Puerto Rico, have a tax home in Puerto Rico, have closer connections to Puerto Rico than any other jurisdiction, and file Puerto Rico tax returns. The IRS scrutinizes residency claims closely — maintaining a home, social ties, and business activities in Puerto Rico is essential for compliance.