PRIA, Government Policy, Made Personal

§933 Income From Sources Within Puerto Rico

Title 26 › Subtitle A — Income Taxes › CHAPTER 1 — NORMAL TAXES AND SURTAXES › Subchapter N — Tax Based on Income From Sources Within or Without the United States › PART III — INCOME FROM SOURCES WITHOUT THE UNITED STATES › Subpart D — Possessions of the United States › § 933

Last updated Sep 22, 2026|Official source

Summary

If you were a resident of Puerto Rico for the whole tax year, income you earned from Puerto Rico does not count as taxable income for federal tax purposes. This does not apply to pay for work as an employee of the United States government or its agencies. You cannot take deductions or tax credits against that excluded income, except you may still claim the personal exemption under section 151. If you are a U.S. citizen who lived in Puerto Rico for at least 2 years and then moved away, income from Puerto Rico that belongs to the time you lived there is treated the same way. The same U.S.-employee exception and the same rules about deductions and credits (other than the section 151 personal exemption) apply.

Title 26, §933

Internal Revenue Code, Source: USLM XML via OLRC

The following items shall not be included in gross income and shall be exempt from taxation under this subtitle:

(1)Resident of Puerto Rico for entire taxable year

In the case of an individual who is a bona fide resident of Puerto Rico during the entire taxable year, income derived from sources within Puerto Rico (except amounts received for services performed as an employee of the United States or any agency thereof); but such individual shall not be allowed as a deduction from his gross income any deductions (other than the deduction under section 151, relating to personal exemptions), or any credit, properly allocable to or chargeable against amounts excluded from gross income under this paragraph.

(2)Taxable year of change of residence from Puerto Rico

In the case of an individual citizen of the United States who has been a bona fide resident of Puerto Rico for a period of at least 2 years before the date on which he changes his residence from Puerto Rico, income derived from sources therein (except amounts received for services performed as an employee of the United States or any agency thereof) which is attributable to that part of such period of Puerto Rican residence before such date; but such individual shall not be allowed as a deduction from his gross income any deductions (other than the deduction for personal exemptions under section 151), or any credit, properly allocable to or chargeable against amounts excluded from gross income under this paragraph.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1986—Pub. L. 99–514 inserted “, or any credit,” in pars. (1) and (2).

Statutory Notes and Related Subsidiaries

Effective Date

of 1986 AmendmentAmendment by Pub. L. 99–514 applicable to taxable years beginning after Dec. 31, 1986, with certain exceptions and qualifications, see section 1277 of Pub. L. 99–514, set out as a note under section 931 of this title.