Costa Rica



The national currency is the Costa Rican colon. In 2022, in average the CRC 644.765equalled a 1 US dollar. The average worker earned CRC 9.445.151 on an annual basis.

The fiscal year begins on January 1st and ends the following December 31th.

The Costa Rica Income tax is applied to the income in cash or in kind, continuous or occasional, from any Costa Rican source perceived or accrued by individuals or legal entities domiciled in the country;

Costa Rica's labor legislation provides for payment of an additional salary or "bonus" paid in December of each year, the benefit is determined on the monthly average wage of the worker's other concepts be paid as overtime. This concept is not subject to social security contributions and is not taxed on the income tax.

Exempt income:

The most noteworthy types of exempt income include:

  • Inheritances, bequests and other forms of inherited property.

  • Lottery prizes.

  • The annual bonus paid up one twelfth of the annual income.

Domestic natural persons who receive income of Costa Rican source, whether or not they have resided in the country during the respective fiscal period. Resident individuals are also subject to social security contributions to the Costa Rican Social Security Fund (CCSS) and fees to the Popular Bank.

  • CRC 19 320 for each child in the household.

  • CRC 29 160 for the spouse, which can only be claimed by one of the spouses.

Those tax credits are wastable.


The annual income tax schedule is determined on the taxable income according to the following schedule for 2021:

No state or local taxes are levied on wages.

Employers are required to contribute to the following public programs.




The average worker’s wage was calculated according to the official data of the CCSS that represents the official salaries of the formal sector for year 2022, adjusted for the year-on-year growth rate of wages according to the Continuous Employment Survey.1

The functions which are used in the equations (Taper, MIN, Tax etc) are described in the technical note about tax equations. Variable names are defined in the table of parameters above, within the equations table, or are the standard variables “married” and “children”. A reference to a variable with the affix “_total” indicates the sum of the relevant variable values for the principal and spouse. And the affixes “_princ” and “_spouse” indicate the value for the principal and spouse, respectively. Equations for a single person are as shown for the principal, witwh “_spouse” values taken as 0.


← 1. At the time of the consultation, the CCSS did not have the necessary systems enabled due to hacking problems. Therefore, it was decided to update the data contingently in this way. The survey is supplied by Instituto Nacional de Estadisticas y Censos.

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