Puerto Rico, including the municipality of Mayagez, does not operate as a U.S. state for tax purposes. Instead, it has its own distinct tax system. Residents and businesses are subject to Puerto Rican taxes, which include income tax, sales tax (known as IVU – Impuesto sobre Ventas y Uso), property tax, and excise taxes. These taxes fund the local government and public services on the island.
Understanding the Puerto Rican tax structure is crucial for individuals and companies residing or operating within its borders, including Mayagez. Compliance with these tax laws ensures the continued funding of essential infrastructure, education, and social programs. Historically, the tax framework has evolved to address the unique economic and political circumstances of the island.
