---
title: "Costa Rica Tax and Payroll 2026 | CCSS, Renta, Aguinaldo"
description: "Costa Rica payroll 2026: employer CCSS 14.17%, employee 8.34%, new salary-tax bands to 25%, plus a mandatory aguinaldo."
canonical: https://www.teamed.global/country-hiring-guides/costa-rica/tax-and-payroll
---

Costa Rica · Tax & payroll child

Served by Teamed vetted partner-entity network in Costa Rica

# How does *Costa Rica payroll tax* work in 2026?

Costa Rica reset its salary-tax bands for 2026 under Decreto 45333-H. Monthly pay below a first threshold is now exempt, and the top rate sits at 25%. On top of that, the employer hands the CCSS social fund 14.17% of payroll, and December brings a mandatory extra month of pay.

Last reviewed 13 June 2026 · Costa Rica guide

![San Jose, Costa Rica at golden hour with the Central Valley mountains behind the downtown rooftops.](/images/country-guides/costa-rica-tax-payroll.webp)

Illustration · San Jose, Costa Rica

Answer.cite this

Costa Rica payroll in 2026 has two main parts. The employer pays the CCSS social fund 14.17% of payroll. The employee pays 8.34%.

Salary income tax runs across five bands. The lowest pay is exempt at 0%. The rate then rises through 10%, 15%, and 20%. The top band is 25%.

The 2026 bands come from Decreto 45333-H. Workers also get a small monthly tax credit of CRC 1,710/month per child and CRC 2,590/month for a spouse.

One more cost lands in December. Every worker is owed a 13th month of pay, the aguinaldo. You must pay it within the first 20 days of December (Ley 2412).

## What does an employer pay in Costa Rica payroll taxes?

The employer pays the CCSS social fund 14.17% of payroll. This covers health cover and the pension fund.

Several smaller employer funds sit on top of that rate. The full employer cost is higher than the CCSS line alone.

| Employer contribution | Rate | Applies to |
| --- | --- | --- |
| CCSS (health and pension) | 14.17% | Gross monthly salary |

### What CCSS covers

CCSS is the Caja Costarricense de Seguro Social, the national social fund. The employer pays 14.17% of each worker’s gross pay. That single rate splits into health cover and the IVM pension fund. The employee pays a separate share on top.

### The funds beyond CCSS

Costa Rica also charges the employer several smaller payroll funds, such as INA, IMAS, and the Banco Popular levy. These sit above the headline CCSS rate, so the true employer cost runs higher than 14.17%. Teamed itemises each fund as a separate line, so you see the full employer burden, not a blended figure. Source the headline rate from the [CCSS contributions page](https://www.ccss.sa.cr/seguros).

## What does an employee pay from their Costa Rica salary?

The employee pays the CCSS social fund 8.34% of gross pay. This comes off before salary income tax.

Salary income tax is then worked out on the pay that remains.

| Employee deduction | Rate | Applies to |
| --- | --- | --- |
| CCSS (health and pension) | 8.34% | Gross monthly salary |

### The CCSS deduction

The employee contributes 8.34% of gross pay to CCSS. That covers the SEM health portion and the IVM pension portion. The employer withholds it on every pay run and sends it to CCSS with the employer share.

### What the worker keeps

After the CCSS deduction, salary income tax is applied to the remaining pay. Most workers also reduce their tax with a small monthly credit, CRC 1,710/month for each child and CRC 2,590/month for a spouse, set by Decreto 45333-H. Costa Rica has no flat national minimum wage. The government sets a minimum by job type, from CRC 373,092.30/month for an unskilled worker to CRC 419,755.80/month for a skilled one.

## Costa Rica salary income tax bands for 2026

Salary income tax runs across five bands. The lowest monthly pay is exempt at 0%.

The rate then climbs through 10%, 15%, and 20%, up to a top rate of 25%. The 2026 bands come from Decreto 45333-H.

| Monthly salary band | Rate |
| --- | --- |
| Lowest monthly pay | 0% |
| Second band | 10% |
| Third band | 15% |
| Fourth band | 20% |
| Top band | 25% |

Costa Rica taxes salary income on a monthly basis, not a yearly one. Each band applies to a slice of monthly pay. The lowest slice is exempt at 0%, then the rate steps up through 10%, 15%, 20%, and 25% on the highest pay. The 2026 thresholds were reset by Decreto 45333-H, published in La Gaceta in December 2025.

### The monthly tax credits

Two credits reduce the tax due each month. A worker gets CRC 1,710/month for each child and CRC 2,590/month for a spouse. These are subtracted from the calculated tax, not from the pay. Apply them in the wrong place and the tax figure is wrong, even when every band rate is right. Teamed’s payroll applies the bands and credits in the correct order on every run.

## How does Costa Rica payroll filing and CCSS remittance work?

Employers withhold CCSS and salary tax each month and remit them to CCSS and the tax authority.

The pay run itself can be no less often than every two weeks for manual workers, and monthly for office workers (Codigo de Trabajo art. 168).

CCSS · Caja Costarricense de Seguro Social

Employers must register each worker with CCSS and report payroll through the SICERE system every month. The employer withholds the employee CCSS share at 8.34% and adds the employer share at 14.17%, then remits both. Late or under-reported payroll carries CCSS penalties and interest, and can block the employer’s good-standing certificate.

Source: [CCSS: Seguros y contribuciones](https://www.ccss.sa.cr/seguros)

Costa Rica payroll runs on a fixed cycle. Manual workers must be paid at least every two weeks, and office workers at least monthly. Each month the employer reports pay to CCSS through SICERE, withholds salary income tax, and pays both to their authorities. Salary tax goes to the Ministerio de Hacienda. CCSS contributions go to the Caja. Get a single month’s SICERE report wrong and the penalties stack up fast.

1. Collect pay data Gather salary, hours, overtime, and any taxable benefits for the pay period before the run closes.
2. Calculate gross and deductions Work out gross pay, then withhold the employee CCSS share and apply the salary-tax bands to the pay that remains.
3. Apply the monthly tax credits Subtract the per-child and spouse credits from the calculated tax. Apply them to the tax, not the pay.
4. Add employer contributions Calculate the employer CCSS share and the smaller employer funds on top of the worker deductions already taken.
5. Report through SICERE Submit the monthly payroll report to CCSS through SICERE and pay salary tax to the Ministerio de Hacienda. Late reports trigger penalties.

## Pension and the aguinaldo in the Costa Rica payroll stack

The pension sits inside the CCSS rate. The IVM portion is part of the 14.17% employer contribution and the 8.34% employee one.

Costa Rica adds a 13th month of pay in December, the aguinaldo (Ley 2412).

Costa Rica does not run a separate auto-enrolment pension like some countries. The state pension, IVM, is built into the CCSS contribution. It is funded from the employer’s 14.17% and the employee’s 8.34%, alongside the SEM health portion.

### The aguinaldo, a real extra month

The bigger payroll surprise is the aguinaldo. Every worker is owed 1 month of extra pay each year, the 13th month, under Ley 2412. It equals one twelfth of the total pay earned from December to November. You must pay it within the first 20 days of December. There is no statutory 14th month.

### The other paid entitlements

Workers also earn 2 weeks of paid vacation after a year of service, and Costa Rica has 9 days of mandatory paid public holidays. Overtime is paid at a premium of 50% above the ordinary wage, on top of a standard 48 hours working week. Each of these adds to the real cost of a Costa Rica hire.

## How does Teamed handle Costa Rica payroll for you?

Teamed becomes your legal [employer of record](/lp/employer-of-record) in Costa Rica for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency.

CCSS, salary tax, the aguinaldo, and the full Costa Rica employment law stack run on **one platform**.

**Real HR and legal experts** handle your Costa Rica hires, from the first contract through every monthly SICERE report and the December aguinaldo. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice, so you see the CCSS 14.17% line and each smaller fund as separate lines, never a blended figure.

EOR payroll, contractor onboarding, and entity setup all live on **one platform**. A Costa Rica contractor who converts to payroll keeps their record. That same worker can **graduate** from EOR to your own Costa Rica entity without switching systems. Run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the full picture, including the aguinaldo and the smaller employer funds. EOR is the right model for a first Costa Rica hire, **until it isn't**. Start from [the Costa Rica hiring overview](/country-hiring-guides/costa-rica).

Key sources: the [CCSS contributions page](https://www.ccss.sa.cr/seguros), the [Codigo de Trabajo](http://www.pgrweb.go.cr/scij/Busqueda/Normativa/Normas/nrm_texto_completo.aspx?param1=NRTC&nValor1=1&nValor2=8045), and the 2026 salary-tax decree.

## Frequently asked questions

What does an employer pay in Costa Rica payroll taxes in 2026?

The employer pays the CCSS social fund 14.17% of gross salary, which covers health cover and the IVM pension. Several smaller employer funds, such as INA, IMAS, and the Banco Popular levy, sit on top, so the true employer cost runs higher than the CCSS line alone.

What is deducted from a Costa Rica employee's salary?

The employee pays CCSS at 8.34% of gross pay, which comes off before salary income tax. Salary income tax is then charged on the pay that remains, across five bands, and reduced by a monthly credit of CRC 1,710/month per child and CRC 2,590/month for a spouse.

What are the Costa Rica salary income tax bands for 2026?

Salary tax has five bands set by Decreto 45333-H. The lowest monthly pay is exempt at 0%, then the rate rises through 10%, 15%, and 20%, up to a top rate of 25%. Costa Rica taxes salary on a monthly basis, not a yearly one.

Is the aguinaldo (13th month) mandatory in Costa Rica?

Yes. Every worker is owed 1 month of extra pay each year, the aguinaldo, under Ley 2412. It equals one twelfth of total pay earned from December to November, and you must pay it within the first 20 days of December. There is no statutory 14th month.

Does Costa Rica have a national minimum wage?

No single flat figure. The government sets a minimum by job type each year through an MTSS decree. For 2026 it runs from CRC 373,092.30/month for a generic unskilled worker to CRC 419,755.80/month for a skilled one, under Decreto 45303-MTSS.

How is Costa Rica payroll filed and paid?

Each month the employer reports pay to CCSS through the SICERE system, withholds the employee CCSS share at 8.34% and salary income tax, and pays both. CCSS contributions go to the Caja and salary tax goes to the Ministerio de Hacienda. Late or under-reported payroll carries CCSS penalties and interest.

Teamed Legal Operations

The cost that catches first-time Costa Rica employers out is not a tax rate, it is the aguinaldo. Every worker is owed a full extra month of pay each December, and the smaller employer funds stack above the headline CCSS rate. Budget on the CCSS line alone and your December payroll lands well over what you planned for.

A note from Tom Price-Daniel

Costa Rica payroll is not just CCSS at one rate. It is salary tax across five bands, a stack of smaller employer funds, and a 13th-month aguinaldo every December.  
The 2026 salary bands were reset by Decreto 45333-H, with the lowest pay exempt at 0% and a top rate of 25%.  
See the full employer cost before you hire.

Tom Price-Daniel · Co-founder, Teamed

## Related Costa Rica guides

- [Hiring in Costa Rica, overview](/country-hiring-guides/costa-rica)parent
- [Termination and severance in Costa Rica](/country-hiring-guides/costa-rica/termination-and-severance)sibling
- [Employer of Record overview](/lp/employer-of-record)core
- [Pricing, Zero FX Fixed](/pricing)core
- [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Caja Costarricense de Seguro Social (CCSS) and the Ministerio de Hacienda, or speak to a qualified professional, before relying on any specific framework. The 2026 salary-tax bands were reset by Decreto 45333-H, effective 1 January 2026, and the CCSS illness subsidy basis changed in November 2024, so confirm the live figures before each pay run.