The short version
- NotiCel reports that effective income tax rates rise from 2.9% to 12.6% between $30,000 and $100,000 in annual income
- According to the CCPA study, 42.7% of IVU revenue comes from business purchases rather than final consumption, potentially pushing effective consumer burden to 12.7%
- NotiUno indicates the 33% maximum statutory income tax rate begins at $61,500 net income, while effective rates for incomes above $200,000 stay between 19% and 20%
- The study projects a loss of 213,000 jobs by 2045 and $843 million in annual combined tax revenue if current demographic trends continue
Study highlights middle-class pressure
Families with annual incomes between $40,000 and $60,000 face a significant tax burden from the combination of income taxes, the Impuesto sobre Ventas y Uso (IVU) and excise taxes, according to a study presented on Tuesday by the Colegio de Contadores Públicos Autorizados de Puerto Rico (CCPA) and its foundation. NotiCel reported that these families allocate a large portion of their income to consumption subject to IVU and excises while receiving little or no Earned Income Tax Credit.
The report, titled "Radiografía estructural del sistema contributivo de Puerto Rico y sus principales distorsiones económicas," was prepared by ABEXUS and economist Edwin Ríos. It was presented on Tuesday, Nov. 10, 2026. The study identifies that effective income tax rates increase from 2.9% to 12.6% between income levels of $30,000 and $100,000, according to both NotiCel and NotiUno. However, effective rates stabilize between 19% and 20% for incomes above $200,000 even though the statutory maximum rate is 33%.
Rolando López, president of the CCPA Foundation, stated in written remarks that the study provides a comprehensive view of the tax system to understand how its provisions affect decisions by individuals and businesses. He added that the goal is to supply data for evaluating reform options based on their effects on investment, productivity, equity and revenue collection.
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What the sources posted
Posts and statements below are the sources' own words, quoted as published. They are not independently verified.
Este estudio ofrece una mirada al sistema contributivo en su conjunto para entender cómo sus distintas disposiciones entrelazadas afectan las decisiones de las personas y los negocios.
Our translation: This study offers a look at the tax system as a whole to understand how its different intertwined provisions affect the decisions of people and businesses.
The source's own statement, as quoted by NotiCel. Not verified by PuertoRico.com.
Inflation, business taxes and municipal levies
The analysis notes that inflation has increased the tax burden because the dependent deduction remains at $2,500 although its inflation-adjusted value would be $3,762, López told reporters according to both outlets. The study also finds that the 33% maximum income tax rate begins at a net income of $61,500, which may influence professionals considering emigration, NotiUno reported.
On the IVU, 42.7% of collections come from business operational purchases rather than final consumption. Because businesses cannot recover this tax it accumulates along the production chain, and if passed on to prices the effective burden on consumers could reach 12.7% compared with the 11.5% shown on receipts, the study concludes. Both NotiCel and NotiUno carried this finding.
Corporate tax disparities were also flagged: regular corporate rates can reach 37.5% while certain entities under tax decrees pay 4%, placing non-beneficiary businesses at a competitive disadvantage. At the municipal level, sales-based license taxes and inventory taxes are applied regardless of profits or whether goods are sold; these weigh more heavily on small, low-margin businesses and discourage holding prudent inventory levels, making the island more vulnerable, López said.
Projections and reform recommendations
If current demographic trends continue, Puerto Rico could lose approximately 213,000 jobs by 2045, resulting in an estimated annual reduction of $843 million in combined income tax and IVU revenue (in 2025 dollars), according to the report cited by both news outlets.
The researchers recommend reviewing income taxes, IVU, excises, property taxes and municipal levies together. Proposals include adjusting deductions for inflation, reducing unjustified differences between comparable economic activities and evaluating incentives based on additional investment generated. Gerardo Torres, president of the CCPA, stated that the findings reinforce the need for an integral evaluation of the system to reduce unjustified differences, simplify compliance and provide stability while considering families' ability to pay and business operating conditions.
Where the sources differ
NotiCel and NotiUno agree on all major findings, including effective tax rate progressions, the $40,000-$60,000 middle-income burden, IVU business-purchase share of 42.7%, potential 12.7% effective consumer rate, the $61,500 threshold for the 33% statutory rate, municipal tax distortions, the 213,000-job loss projection by 2045 and the $843 million revenue impact. NotiUno alone quotes CCPA president Gerardo Torres on the need to consider ability to pay; both quote Rolando López at length. The only minor difference is that NotiCel mentions three of every ten people 15 or older pay income tax while NotiUno does not repeat that statistic.
What the reports do not say
The reports do not specify the exact date or location of the formal presentation beyond "Tuesday," whether government officials received the study, if any legislative committees have scheduled hearings on the recommendations, the total cost or funding source of the ABEXUS research, or concrete revenue-neutral modeling of the proposed reforms. No response from the Department of Treasury or the governor's office is mentioned.
Sources
Every link below was opened and checked when this story was published. Official means a government body, agency or the organization itself; Reporting means a news outlet.
- Official Familias de ingresos medios enfrentan mayor presión contributiva en Puerto Rico
- Reporting Familias de ingresos medios enfrentan mayor presión contributiva en Puerto Rico
- Reporting Familias de ingresos medios cargan con la mayor presión contributiva, según estudio del CCPA y su fundación
How we checked this
Both NotiCel and NotiUno based their coverage on the same CCPA Foundation study and written statements from Rolando López. NotiUno additionally quoted Gerardo Torres. All figures, projections and recommendations rest on the single report prepared by ABEXUS and economist Edwin Ríos.
Compiled by the PuertoRico.com News Desk from the reports and statements listed above, and checked against them before publishing. It does not include original interviews. Spot an error? Email support@puertorico.com with a link to this story.
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