The Ministry of Finance announced the update of the Income Tax brackets which will be in effect as of January 1, 2026.
According to Executive Decree 45 333-H, the new amounts were defined by applying the variation of the Consumer Price Index, which for this period corresponds to minus zero point thirty-eight percent, i.e., a negative variation of the CPI.
In the case of salaried employees, the exempt bracket now goes up to 918 thousand colones per month, while the progressive rates remain between 10% and 25%. Tax credits are also updated: 1,710 colones per child and 2,600 colones per spouse.
For individuals with lucrative activities, the exemption limit increases to 6 million 244 thousand colones per year, with scales ranging from 10% to 25%. Annual tax credits increase to 20,520 colones per child and 31,080 colones per spouse.
In the case of legal entities with gross income below 119 million 629 thousand colones, the rates continue to be differentiated: 5%, 10%, 15% and 20%, according to the level of net income.
Although no new formalities are introduced, the Treasury Department reminds taxpayers that they must immediately adjust their withholdings, partial payments and tax liquidation for the 2026 tax period.
This is a news service prepared by ICS. For more information about the story, write to info@ics.cr or call 2519-9992 ICS, tax specialists.