View Single Post
Old 07-19-2020, 04:45 PM
  #564  
hindsight2020
Gets Weekends Off
 
hindsight2020's Avatar
 
Joined APC: Oct 2006
Position: Center seat, doing loops to music
Posts: 825
Default

PreciousCargo

An important line item federal civil servants stationed in PR may want to inquire is the tax implications. I haven't heard of any override in pay, given PR is paid at "rest of US" locality rate, which is frankly uncompetitive as all get out. PR levies income tax to the tune of 33% for every dollar above 60K, which puts it at the highest bracket of any place in the US that taxes federal+state. As a federal civil servant you're given a tax credit on your taxes paid to the island coffers, to offset your federal tax burden. Essentially it always exceeds your federal burden so you end up owing nothing to the fed on your 1040. But it is not an insignificant tax burden. You're probably going to take home the least amount of all CBP locales. This "25% extra for PR" pay is news to me, would love a source to that claim. Housing costs are fairly CONUS-like, based on other DOD agencies' footprint in the Isabela/Aguadilla MSA and the Lufthansa employees now in the area. IOW, it's not inexpensive living for the after-taxes income, for someone accustomed to "rest of US" non-coastal CONUS housing COL. Just something to understand about the decision to work in PR as a non-Act20/22 type. Good luck.
hindsight2020 is offline