Puerto Rico Property Tax

Effective Property Tax Rate

50.32%

Median Annual Tax

$627

Median Home Value

$124,600

Puerto Rico Property Tax Overview

Keywords: Puerto Rico property tax, property tax in Puerto Rico, Puerto Rico property tax rate

1. Key Statistics (2026)

Metric	Value
Median home value (ACS 5‑year 2023)	$124,600
Average effective property tax rate (ACS 5‑year 2023)	0.50 %
Median annual property tax (ACS 5‑year 2023)	$627
National average effective property tax rate (2026)	0.97 %
Relative position	48 % below the national average; rank #5 out of 52 states and territories

Source: According to the U.S. Census Bureau's American Community Survey (ACS) (5‑year estimates, 2023).

2. How Property Tax is Calculated

The property tax bill in Puerto Rico is generally based on the assessed value of the property multiplied by the applicable tax rate set by the municipal government (often referred to as a “county” in U.S. terminology). The effective tax rate of 0.50 % reflects the average proportion of a property's market value that is paid annually across the territory.

Note:

Rates can differ among the 78 municipalities (counties) because each municipality sets its own tax rate within limits established by the central government.
Some municipalities may apply additional surtaxes or exemptions (e.g., for senior citizens, veterans, or low‑income homeowners), which can affect the final bill.

3. Example Tax Bills

Using the average effective rate of 0.50 %, the following are illustrative calculations:

Assessed Home Value	Approximate Annual Property Tax
$250,000	$1,258
$500,000	$2,516

These examples assume the standard 0.50 % rate and do not include any local exemptions or additional surcharges.

4. Comparison to the United States National Average

Effective tax rate: Puerto Rico’s 0.50 % is 48 % lower than the U.S. national average of 0.97 %.
Ranking: With this rate, Puerto Rico ranks 5th among the 52 states and territories for the lowest effective property tax rate.

The lower rate is largely attributable to the territory’s tax policy, which sets relatively modest rates compared with most U.S. states.

5. Implications for Retirees and Landlords

Retirees

Affordability: The lower effective tax rate reduces the annual cost of homeownership relative to many U.S. states, which can be a factor in overall cost of living calculations for retirees.
Exemptions: Puerto Rico offers specific property‑tax exemptions for senior citizens meeting income and age criteria, potentially further lowering the tax burden.

Landlords

Operating Costs: A lower property‑tax rate can lower the operating expenses of rental properties, which may improve cash‑flow projections.
Municipal Variation: Because tax rates differ by municipality, landlords should evaluate the specific rate in each location, as well as any local regulations affecting short‑term rentals or landlord‑tenant relations.

All statements above are based on statutory rates and publicly available data; they do not constitute financial advice.

6. Frequently Asked Questions

Question	Answer
What is the average effective Puerto Rico property tax rate?	Based on the most recent ACS estimates (2026), the average effective rate is 0.50 % of a property's market value.
How does Puerto Rico’s property tax compare to the U.S. national average?	Puerto Rico’s rate of 0.50 % is 48 % lower than the national average of 0.97 %, placing the territory among the five lowest jurisdictions in the United States and its territories.
Do property‑tax rates differ by location within Puerto Rico?	Yes. Each of Puerto Rico’s 78 municipalities sets its own tax rate within statutory limits, so the effective rate can vary from one municipality to another. Local exemptions may also affect the final tax bill.

References

U.S. Census Bureau, American Community Survey (ACS) 5‑year estimates, 2023. Data on median home value, effective property tax rate, and median annual property tax for Puerto Rico.
U.S. Census Bureau, ACS 5‑year estimates, 2023. National average effective property tax rate.

All figures are presented as reported in the cited sources and are subject to change with future ACS releases or legislative adjustments.