Revenue from Puerto Rico’s motor vehicle excise taxes is down significantly, falling short of budgetary projections, according to recent data.
Through the first seven months of the current fiscal year, the Puerto Rico Treasury Department has collected approximately $355.6 million in excise taxes on vehicles. This represents a nearly 22% decrease from the amount that had been budgeted, as reported by El Nuevo Día. The shortfall highlights potential challenges in government revenue forecasting and collection.
Effective July 1, 2026, hybrid and electric vehicles will no longer be exempt from these excise taxes. CPA Kenneth Rivera Robles explained, “They removed the total exemption starting July 1, 2026. There were others who received a partial benefit, and the partial benefit was not touched; they removed the total one.” This change is expected to impact the affordability of these vehicles and potentially influence consumer purchasing decisions.
The Puerto Rico Department of Treasury provides a tool to estimate vehicle excise taxes based on vehicle make, model, year, or Vehicle Identification Number (VIN). The department outlines a tiered tax structure based on the vehicle’s contributory price in Puerto Rico, with rates ranging from $637.50 for vehicles priced up to $6,170 to $9,253.10 plus 34.0% of the excess for vehicles exceeding $44,890. Payment options include ACH debit, credit card, and ACH credit.
