If you own a house, an apartment or land in Puerto Rico, you pay real property tax (contribución sobre la propiedad inmueble). This tax is not collected by the Departamento de Hacienda (Puerto Rico's Treasury Department, "Hacienda"). It is collected by the Centro de Recaudación de Ingresos Municipales (CRIM, the Municipal Revenue Collection Center), which collects it and distributes it to the municipalities. The rules are in Book VII of the Código Municipal de Puerto Rico (Puerto Rico Municipal Code, Ley 107-2020 or Act 107-2020), which replaced the old Ley 83-1991 (Act 83-1991) in 2020.
This guide explains how the tax is calculated, how much you can save with the primary residence exemption, when payments are due and what to do if you disagree with what you are notified. If your question is about equipment, inventory or other business assets, see the guide to personal property tax.
Who pays
Real property is assessed in the name of whoever owns it, or is in possession of it, on January 1 of each year (Article 7.050 of the Municipal Code). If you bought or sold during the year, the deed and the notice of change of ownership to CRIM determine who is responsible for each bill. The Code requires the change of ownership to be reported, so do not leave it to chance. Confirm with the notary that it was done.
Real property (inmueble) means land, buildings and whatever is permanently attached to them. Equipment and assets that can be moved without damage are personal property (propiedad mueble) and are treated separately.
How it is calculated
The formula is simple: assessed value × municipal rate = annual tax, minus any exemption.
Assessed value is not market value
CRIM does not use the price you paid or what a private appraiser would say today. The Municipal Code provides that residential valuation is based on 1957 replacement costs, from the last general assessment in Puerto Rico (Article 7.035). That is why a house's assessed value is usually a small fraction of its market value. You will see it on your bill or on a certification of values (certificación de valores) that you can request on the CRIM portal.
The rate depends on the municipality
The total rate combines several parts, all expressed as an annual percentage of assessed value:
| Part | Real property | Legal basis |
|---|---|---|
| Special state tax (debt redemption) | 1.03% | Art. 7.026 |
| Basic municipal tax | up to 6% | Art. 7.025 |
| Special additional municipal tax (CAE) | varies by municipality | Art. 7.026 and following |
CRIM's official table states that the 6% basic tax includes 0.20% that is not charged to the taxpayer. The General Fund pays it to the municipality instead. That is why CRIM publishes two columns: the "combined total" and the "total charged to the taxpayer," which is 0.20 points lower.
Some examples from CRIM's table for fiscal year 2026-2027 (July 1, 2026 to June 30, 2027), in the column for what the taxpayer pays:
| Municipality | Real property rate 2026-2027 |
|---|---|
| Orocovis | 8.03% |
| Bayamón | 9.58% |
| San Juan | 10.33% |
| Caguas | 10.33% |
| Mayagüez | 10.58% |
| Carolina | 11.33% |
| Ponce | 12.33% |
The lowest rate in the table is 8.03% (Orocovis) and the highest is 12.33% (Cidra, Lajas, Ponce and Río Grande). Rates can change each fiscal year, so confirm your municipality's rate in CRIM's current table.
The primary residence exemption
If the house is your primary residence, the Municipal Code exempts the tax on the first $15,000 of assessed value (Article 7.035). It applies to only one home per owner, includes the lot up to one cuerda (a local land measure slightly smaller than an acre) and does not apply if you charge rent for the occupancy. It is not automatic. You apply to CRIM, or through your bank if you have a mortgage.
The details, the documents and what happens if you missed the deadline are in the guide to the primary residence exemption.
A house in San Juan with an assessed value of $28,000 (hypothetical amounts), at a rate of 10.33% for 2026-2027.
- Without the exemption: $28,000 × 10.33% = $2,892.40 per year.
- With the primary residence exemption: ($28,000 − $15,000) × 10.33% = $13,000 × 10.33% = $1,342.90 per year.
- The exemption saves $1,549.50 per year.
- Each semiannual bill would be $671.45. If it is paid within 30 days after the bill is issued, the 10% discount brings it down to $604.31.
When to pay and what discounts there are
Dates. Real property tax is payable semiannually and in advance, on July 1 and January 1 of each year (Article 7.059). CRIM may issue both semiannual bills early, but CRIM's Carta Circular (Circular Letter) 2026-001 clarifies that payment is not due until those dates.
Early payment discounts (Article 7.061), on the amount for the semester:
- 10% if you pay within 30 days after the bill was issued.
- 5% if you pay after 30 days, but no more than 60 days after it was issued.
If the deadline falls on a Saturday, Sunday or holiday, it moves to the next business day.
Surcharges and interest if you pay late (Article 7.059): a 5% surcharge if you pay more than 30 days and up to 60 days after the due date; a 10% surcharge after 60 days; and, in addition, 10% annual interest from the date you should have paid. There are more details in the guide to CRIM debts.
CRIM applies payments to the oldest debts first, in order of due date. If you have past-due bills and pay only the most recent one, that money may go toward the past-due balance. Ask for an account statement before you pay.
How to pay
- Online. On the CRIM portal (crimpr.net) you can register for "Mi CRIM," see the debt on your properties, pay and request certifications. The portal is in Spanish.
- In person. At CRIM's regional and municipal offices.
- If you have a mortgage. In general, the bank collects the tax in your monthly payment, deposits it in a reserve (escrow) account and pays the bills. Check that the bank has your exemption on file. If not, you could be overpaying.
If you disagree with the notice
When CRIM assesses a new property or an improvement and notifies you of the tax, you can request a written administrative review within 30 calendar days from the date of the notice (Article 7.065). For the request to proceed, within that period you have to pay 100% of the part you agree with and 40% of the part you are disputing, or pay the full amount.
CRIM has 60 days to decide, which can be extended for another 60. If the decision is not in your favor, you can go to the Tribunal de Primera Instancia (Court of First Instance) within 30 days. If the matter is complex or the amount is large, it is a good idea to consult an attorney or a CPA with CRIM experience.
Improvements and unassessed properties
Improvements, such as a second floor or an enclosed carport (marquesina), are also taxed once CRIM assesses them. When there is no mortgage lender, the Code allows the owner to hire a licensed professional appraiser to assess the unassessed property or improvement (self-assessment, or autotasación), following CRIM's regulations and Form AS-79.
If you bought a property with debts from previous years that you did not know about, read the section on transfer of debt in the guide to CRIM debts. For transactions such as loans or permits, also see Hacienda and CRIM certifications.
Frequently asked questions
Why is my house worth $250,000 but CRIM says it is worth $30,000?
Because CRIM assesses based on 1957 replacement costs, not market value. The municipal rate is applied to that assessed value, which is much lower. That is why the rates look high, from 8% to 12%, but they are applied to a small base.
Does Hacienda collect property tax?
No. CRIM collects it on behalf of the municipalities. Hacienda handles income tax and the IVU (sales and use tax). They are different agencies, with separate portals and separate debts.
Do I have to pay if my house is exempt?
It depends on the assessed value. If your property is worth $15,000 or less and is exempt, you normally do not pay real property tax. If it is worth more, you pay only on the excess.
What happens if the bank did not pay the bill on time?
The surcharges and interest are charged to the property's account. If the delay was caused by the bank that manages your escrow, file a claim with the bank using your proof of payment. Also ask CRIM for an account statement to confirm that everything is up to date.
Can I request a payment plan?
Yes. CRIM has payment plans for past-due debts, with a down payment of at least 10% of the debt. The requirements are in the guide to CRIM debts.
Sources
- Oficina de Gerencia y Presupuesto, "Código Municipal de Puerto Rico, Ley 107-2020, según enmendada (rev. 9 de septiembre de 2026)". bvirtualogp.pr.gov
- CRIM, "Tipos contributivos sobre la propiedad mueble e inmueble, año fiscal 2026-2027". portal.crim360.com
- CRIM, "Preguntas frecuentes". portal.crim360.com
- CRIM, "Modelo AS-38: Solicitud de exoneración para fines residenciales y veteranos". portal.crim360.com
- CRIM, "Carta Circular 2026-001: Interpretación y uso correcto de las certificaciones de deuda". portal.crim360.com
787TAX is an independent guide. It is not Puerto Rico's Departamento de Hacienda, the CRIM or the IRS. This page is general information, not tax or legal advice. Example figures are hypothetical. Found an error? Tell us.
