Do I need to pay Puerto Rico tax if I work remotely from Illinois?

Do you have to pay income tax in Puerto Rico?

While the Commonwealth government has its own tax laws, Puerto Rico residents are also required to pay US federal taxes, but most residents do not have to pay the federal personal income tax.

Is income earned in Puerto Rico taxable in the US?

Puerto Rico holds a unique position as an unincorporated U.S. territory. Under Internal Revenue Code (IRC) §933, Puerto Rico source income is excluded from U.S. federal tax.

Do Puerto Rican residents pay taxes?

Further, U.S. citizens and resident aliens living in Puerto Rico are generally subject to U.S. tax on worldwide income. However, a bona fide resident of Puerto Rico for an entire taxable year may exclude income from sources within Puerto Rico for U.S. federal income tax purposes.