Puerto Rico doesn’t apply its 11.5% sales and use tax to vehicles. Instead, the car sales tax rate in Puerto Rico takes the form of a progressive excise tax that starts at a $750 minimum and climbs to 40% on the portion of value above roughly $44,890. It applies whether you buy from a local dealer or ship a car from the mainland, and it’s calculated on the government’s assessed value, not the price you negotiated.
Excise Tax Brackets for Automobiles
Hacienda (the Department of the Treasury) sets a tiered excise tax on automobiles introduced from abroad or manufactured on the island. The brackets are based on the vehicle’s “taxable price in Puerto Rico,” which Hacienda determines from industry valuation guides.1Justia. Puerto Rico Code 13 Section 31628 – Vehicles
- Up to $6,170: $750 flat, which also functions as the minimum tax for any car
- $6,170 to $10,690: $750 plus 12% of the amount over $6,170
- $10,690 to $21,380: $1,292 plus 23% of the amount over $10,690
- $21,380 to $31,780: $3,751 plus 27% of the amount over $21,380
- $31,780 to $44,890: $6,559 plus 32% of the amount over $31,780
- Over $44,890: $10,866 plus 40% of the amount over $44,890
Two quick examples. A car with a taxable price of $25,000 lands in the fourth bracket: $3,751 plus 27% of $3,620, or about $4,728. A $50,000 vehicle hits the top bracket at $10,866 plus 40% of $5,110, roughly $12,910. The arithmetic is simple once you know the bracket. The variable that actually matters is Hacienda’s assessed taxable price.
No automobile, truck, or bus pays less than $750 in excise tax, regardless of how low the value goes.1Justia. Puerto Rico Code 13 Section 31628 – Vehicles
How Hacienda Sets the Taxable Value
The tax is not based on your purchase price or the dealer’s sticker. Hacienda calculates a “suggested consumer sales price” using standardized industry guides. For models not covered by the standard listings, the statute directs the Secretary to use the Black Book New Car Market Guide (or another recognized industry source) multiplied by 1.32 to set the taxable base.1Justia. Puerto Rico Code 13 Section 31628 – Vehicles
You can look up the taxable value for a specific vehicle through the Sistema Unificado de Rentas Internas (SURI) at suri.hacienda.pr.gov. Entering the VIN returns the official assessed value that will drive your excise calculation. That’s the number to budget from. Using what you paid, or what the dealer quoted, will usually understate the tax.
If an importer reports a suggested consumer price that doesn’t reasonably reflect the market, the Secretary can override it using alternative industry data for that transaction.1Justia. Puerto Rico Code 13 Section 31628 – Vehicles
Used Cars and Depreciation
Pre-owned vehicles are not taxed at new-car values. Hacienda applies depreciation adjustments that shrink the taxable base as the car ages, with the steepest reductions in the earliest years. The depreciated value then runs through the same brackets above.
The $750 floor still applies. Ship a 15-year-old sedan to the island and expect at least that amount.1Justia. Puerto Rico Code 13 Section 31628 – Vehicles SURI will show the depreciated taxable value for any specific VIN before you commit.
Motorcycles
Motorcycles follow a flat 10% of the taxable price in Puerto Rico, with no brackets. A motorcycle assessed at $12,000 owes $1,200. The statute defines “motorcycle” broadly as any self-propelled vehicle with fewer than four wheels designed to carry people, so scooters and similar bikes fall under the same 10% rule.1Justia. Puerto Rico Code 13 Section 31628 – Vehicles
Electric, Hybrid, and Other Exemptions
Fully electric vehicles and plug-in hybrids are currently exempt from the excise tax. A proposed tax reform that would have removed the exemption was rejected by Puerto Rico’s Financial Oversight and Management Board, so the incentive remains in place.
Conventional hybrid and plug-in hybrid vehicles that do pay excise tax may qualify for a refund. If the tax owed is $2,000 or less, the full amount is refunded. If it exceeds $2,000, the refund equals 25% of the tax paid, with a $2,000 minimum refund.2Justia. Puerto Rico Code 13 Section 31653 – Excise Tax Refund for Vehicles Propelled by Combined or Alternative Energy
A separate full exemption applies to residents of Culebra and Vieques who buy an alternative fuel vehicle and dispose of their previous car in an environmentally responsible manner. It’s limited to one automobile per year for personal use.2Justia. Puerto Rico Code 13 Section 31653 – Excise Tax Refund for Vehicles Propelled by Combined or Alternative Energy
Other categories can reduce or eliminate the tax as well. Disabled veterans who receive a vehicle through the Veterans Administration are exempt. Vehicles used exclusively for public transportation, school buses, and tourist transportation operations also qualify when they meet the certification requirements. Every exemption requires documentation submitted to Hacienda, and incomplete filings result in the standard rates being applied.
Buying Locally vs. Importing
The rate is the same either way; the paperwork isn’t.
At a dealership on the island, the dealer typically calculates the excise tax, folds it into the sale price, and handles Hacienda’s paperwork. The taxable value still comes from Hacienda’s standardized valuation, not the dealer’s discounted number. If a dealer quotes a price “including taxes,” it’s reasonable to ask which taxable value was used and check the same VIN in SURI before signing.
If you’re shipping a vehicle from the mainland, the excise tax has to be paid before the port will release it.3U.S. Immigration and Customs Enforcement. 4 Indicted in Vehicle Excise Tax Conspiracy Related to Puerto Rico Department of Treasury Individuals importing for personal use file a non-merchant import declaration in SURI, enter the VIN and vehicle details, and upload the bill of lading and commercial invoice. The system calculates the tax on the assessed value, and payment is made through the platform. Once payment clears, Hacienda issues a release form. That form is also what the Department of Transportation and Public Works (DTOP) needs to register the vehicle and issue plates.
Costs on Top of the Excise Tax
Ocean freight and port storage add up when you’re importing. One major carrier serving Puerto Rico allows seven free days of storage after the vessel discharges, with daily fees after that; delays gathering paperwork can eat that window fast. Customs brokers commonly handle the SURI filing for a few hundred dollars, though a straightforward personal import can be done without one if the VIN and documents are entered carefully.
Once the car is released, you still register with DTOP. The annual registration sticker, called a marbete, costs $85 and requires proof of current inspection and compulsory insurance. Liability coverage has to be in place before registration, so factor that into the total cost of putting a car on the road.