Countries › Dominican Republic › Guide › 6. Taxes › Personal income tax in the Dominican Republic: 2026 scale, the 2027 scale and foreign income

Personal income tax in the Dominican Republic: 2026 scale, the 2027 scale and foreign income

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Last verified: 2026-10-30 · Status: Changing

Residents pay up to 25% in 2026 with RD$416,220 exempt, and from fiscal year 2027 the exempt band rises to RD$480,000 with a new top rate of 27% above RD$4.8 million. Residents are taxed on Dominican income plus foreign investment income and technical assistance, and new residents get a three year window on foreign income. The IR-1 return is due by 31 March.

USD figures use the Banco Central de la República Dominicana reference selling rate of RD$60.8594 per US dollar for 28 October 2026, the latest row in its published rate file on the verification date, rounded to the cent.

Key facts

Top personal rate, 2026	25 %Ley 11-92 art. 296, as of 2026-10-30 · in force
Top personal rate from fiscal year 2027	27 %Ley 11-92 art. 296, as of 2026-10-30 · pending
Exempt income, 2026	416220 DOPLey 11-92 art. 296, as of 2026-10-30 · in force
Exempt income from fiscal year 2027	480000 DOPLey 11-92 art. 296, as of 2026-10-30 · pending

The rule

1. The scale DGII publishes for 2026 exempts income up to RD$416,220.01, then taxes 15% to RD$624,329.01, 20% to RD$867,123 and 25% above.DGII income tax page under Ley 11-92 art. 296, art. 296, 2026-10-30 official text · verified 2026-10-30

2. From fiscal year 2027 the scale is: exempt to RD$480,000; 15% to RD$685,000; RD$30,750 plus 20% to RD$910,000; RD$75,750 plus 25% to RD$4,800,000; RD$1,048,250 plus 27% above. The scale is adjusted yearly for inflation.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 296, 2026-06-18 official text · verified 2026-10-30 · changed: Ley 30-26 art. 10 raised the bands and added the 27% tier.

3. Residents pay on Dominican income and foreign income from investments, financial gains and technical assistance. Those who become resident are taxed on foreign income from the third year.Ley 11-92, Código Tributario, as amended by Ley 30-26, art. 269 and art. 271, 2026-06-18 official text · verified 2026-10-30

4. Ley 171-07 exempts the declared pensions and rents of those admitted under it, with a required monthly income of at least US$1,500 for pensioners and US$2,000 for rentiers.Ley 171-07, art. 3 and art. 10, 2007-07-13 official text · verified 2026-10-30

5. Education costs are deductible up to 10% of taxable income and 30% of the exempt amount, or 50% for people with disability or neurodevelopmental conditions.Ley 179-09 as amended by Ley 30-26, art. 3, 2026-06-18 official text · verified 2026-10-30 · changed: Applies from fiscal year 2026. A DGII norm on this is in consultation until 8 December 2026 (notice 15-26).

6. Annual returns on IR-1 are due by 31 March. An individual claiming business deductions cannot also use the exempt amount.Ley 11-92, Código Tributario and DGII income tax page, art. 287 literal m paragraph II, 2012-11-09 official text · verified 2026-10-30

Taxable income	2026	2027	Change
RD$600,000	RD$27,567.00	RD$18,000.00	Saves RD$9,567.00
RD$1,000,000	RD$112,995.25	RD$98,250.00	Saves RD$14,745.25
RD$3,000,000	RD$612,995.25	RD$598,250.00	Saves RD$14,745.25
RD$6,000,000	RD$1,362,995.25	RD$1,372,250.00	Adds RD$9,254.75

Annual tax under each scale

Worked example

On RD$1,000,000 (about US$16,431.32) of taxable income, tax falls from RD$112,995.25 (about US$1,856.66) under the 2026 scale to RD$98,250 (about US$1,614.38) under the 2027 scale. On RD$6,000,000 (about US$98,587.89), it rises slightly because of the 27% tier.

Step by step

Decide residence.
List foreign income in the taxable categories.
Claim the education deduction with fiscal receipts.
File IR-1 by 31 March if not final by withholding.
Update payroll for 2027.

Common traps

The 2027 scale is not retroactive to 2026.
High earners lose from the 27% tier, so check net pay before signing packages.
Foreign technical assistance income is now in scope for residents.

Sources

Related: Dominican Republic country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

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