State sales tax rate10.5%
* While the base rate applies statewide, it’s only a starting point for calculating sales tax in Puerto Rico. For an accurate tax rate for each jurisdiction, add other applicable local rates on top of the base rate.
Puerto Rico sales tax basics
Puerto Rico (PR) is not a state but a commonwealth. The Puerto Rico sales and use tax rate is 10.5%. Puerto Rico has been an unincorporated territory of the United States since 1898, when it was acquired from Spain in the aftermath of the Spanish American War. People born in Puerto Rico, which is located approximately 100 miles southeast of Miami, Florida, are U.S. citizens.
Sales and use tax compliance in Puerto Rico is challenging. Facing mounting government debt, Puerto Rico has implemented several tax changes and is considering several more. The following changes took effect in 2015:
- The general sales and use rate increased from 7% to 11.5% on July 1, 2015.
- A 4% sales tax was tax was applied to previously exempt business-to-business (B2B) transactions on October 1, 2015.
See Departamento de Haciendo de Puerto Rico Administrative Determination No. 15-17 for more information.
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New York sales tax guide for businesses
Our free, online guide covers all aspects of managing New York sales tax compliance. Topics include:
- Business registration
- Collecting sales tax
- Filing sales tax returns
- State nexus obligations
- And more!