Act 60 Savings Calculator: 0% (File by Dec 31, 2026) vs. 4% (2027+)
Estimate what the December 31, 2026 filing deadline could be worth to you. An estimate, not tax advice.
Content current as of June 2026. This tool is a simplified illustration for general educational purposes only. It does not constitute legal or tax advice, does not account for your full facts, and does not create an attorney-client relationship. Actual outcomes depend on bona fide residency, income sourcing, asset history, timing, and applicable law.
Remember: it is the date you file a complete application — not your move date — that sets your rate. Keep proof of timely filing.
Horizon matters. Legacy 0% benefits currently run through December 31, 2035; the 4% regime runs through December 31, 2055. These figures assume your income and gains are realized while your benefits are in effect. If you expect to realize gains after 2035, the comparison is more nuanced — that is part of what a modeling session works through.
Compare to having no decree at all (illustrative)
Without the program, this income could face roughly $0 in tax (plus any state tax that would otherwise apply), applying the single blended rate above to all of it. This is a rough upper-bound illustration only: interest, dividends, and gains are taxed at different rates, federal treatment depends on bona fide residency and sourcing, and some U.S.-source income remains federally taxable even with a decree.
How to read this estimate
The number that matters most for the deadline decision is the middle row. It is, in broad terms, the difference in Puerto Rico income tax — before the program's own fees and the annual charitable contribution — between filing a complete application on or before December 31, 2026 and filing in 2027 or later. The "file by 2026" column is 0% because the legacy regime applies a 0% Puerto Rico rate to qualifying interest, dividends, and post-move capital gains; it is not a measure of your total net benefit, which also reflects the program's costs.
Two cautions this tool deliberately builds in:
- Only post-move gain counts. The 0%/4% rate applies to appreciation that accrues after you become a resident. Pre-move appreciation generally stays U.S.-taxable. See Pre-Move vs. Post-Move Appreciation.
- Puerto Rico tax is only one layer. A decree does not automatically eliminate U.S. federal tax. U.S.-source income and CFC inclusions can remain federally taxable. See Does Act 60 Eliminate GILTI/Subpart F? and Federal Reporting Obligations.
For the rules behind the deadline itself, see Act 60 Deadline: Move by 2026 or Just File?
Frequently Asked Questions
It is a simplified illustration, not a tax projection. It applies a flat 0% (legacy) or 4% (new regime) Puerto Rico rate to the covered income and post-move gains you enter. It does not separate your pre-move from post-move gain, model federal tax, account for the $10,000 annual donation and fees, or address timing across the 2035/2055 horizons. A real benefits projection requires your full facts.
Because those gains generally are not eligible for the 0%/4% rate. Under the federal 10-year lookback rule, appreciation that accrued before you established Puerto Rico residency typically remains U.S.-taxable. Counting it as 0%-eligible would overstate your savings — and create real compliance risk. Dated valuations as of your residency start date are how the pre-/post-move line is drawn.
No — 4% is a Puerto Rico rate that, for qualifying income of a bona fide resident, can be far lower than the U.S. rate that would otherwise apply, and the new regime runs through 2055, a longer horizon than the legacy 2035 sunset. But on a large near-term gain, the 0%-versus-4% difference is real money, which is why the December 31, 2026 filing date is worth evaluating now.
Want a real projection on your actual numbers?
We run an eligibility and tax-impact diagnostic — separating pre-move from post-move gains, mapping each income source, and confirming whether a complete application can be filed before December 31, 2026.
Book a Free Strategy CallThis calculator is a simplified educational illustration and does not constitute legal or tax advice, a tax opinion, or a guarantee of any result. It does not reflect federal tax, program fees, the annual charitable contribution, or your specific facts. Tax outcomes depend on bona fide residency, income sourcing, asset history, timing, and applicable law, all of which change. No attorney-client relationship is formed by using this tool. For advice specific to your situation, schedule a consultation.