Number: RS20718
Title: U.S. FEDERAL TAXES IN PUERTO RICO
Authors: David L. Brumbaugh, Government and Finance Division 
Abstract: U.S. federal taxes generally do not apply to individuals in Puerto Rico, with the exception of Social Security taxes. Instead, Puerto Rico levies its own taxes, at a level higher than those of most U.S. states, but lower than that of the federal government. For businesses, a partial federal tax exemption is provided by the Puerto Rican economic activities credit and the possessions tax credit under sections 30A and 936 of the Internal Revenue Code.
Pages: 6
Date: Updated October 30, 2000