Territory of Puerto Rico Military Pay Taxes

Resident Service members stationed in Puerto Rico must pay taxes on all military pay earned in Puerto Rico. Puerto Rican Resident Service members stationed outside Puerto Rico do not have to pay income tax in Puerto Rico but must pay federal income tax for money earned outside Puerto Rico.

Territory of Puerto Rico Military Retired Pay Taxes

Puerto Rico taxes military retired pay based on where the Service member served. For example, if you retired after 20 years, served five years in Puerto Rico and 15 outside Puerto Rico, then ¾’s of your retirement income is taxed.                                                                                                            

Puerto Rico Taxes on Military Disability Retirement Pay

Military Disability Retirement Pay received as a pension, annuity or similar allowance for personal injury or sickness resulting from active service in the U.S. Armed Forces should not be included in taxable income. Some of the payments which are considered disability benefits include:

• Disability compensation and pension payments for disabilities paid to Veterans or their Families
• Grants for homes designed for wheelchair living
• Grants for motor vehicles for Veterans who lost their sight or the use of limbs, or
• Benefits under a dependent-care assistance program.

Puerto Rico Taxes on Military Survivor Benefit Plan (SBP)/ Reserve Component Survivor Benefit Plan (RCSBP)/ Retired Serviceman’s Family Protection Plan

Puerto Rico offers a tax reduction based on age for those receiving a retirement pension or annuity from the U.S. Government. Those under age 60 have a standard deduction of $11,000, those over age 60 are authorized a $15,000 deduction.

Territory of Puerto Rico Retirement Pension Aged Based Tax Deduction

Puerto Rico offers a tax reduction based on age for those receiving a retirement pension or annuity from the U.S. Government. Those under age 60 have a standard deduction of $11,000, those over age 60 are authorized a $15,000 deduction.

Territory of Puerto Rico Veteran Tax Exemptions

Puerto Rico resident Veterans of the U.S. Armed Forces are eligible for an income tax exemption of $1,500. If married filing jointly and both Spouses are Veterans, the exemption is $3,000.

Territory of Puerto Rico Veteran Property Tax Exemptions

There are several types of property tax exemptions, each with its own eligibility criteria and level of exemption ranging from $5,000 to a complete property tax exemption. The Veteran must have used the home as their primary residence as of 1 January of the taxable year. All exemptions are for the appraised value of the home and the land up to 1,000 square meters in an urban zone or 1 cuerda in the rural zone.

Territory of Puerto Rico (Regular) Veteran Property Tax Exemption

Veterans are eligible for a property tax exemption for up to $5,000 of the appraised taxable value of their home. The unremarried Surviving Spouse is also eligible for this exemption.

Territory of Puerto Rico Totally Disabled Veterans Property Tax Exemption

100% disabled Veterans are eligible for a complete property tax exemption for their home.

Territory of Puerto Rico Service-Connected Disabled Veteran Property Tax Exemption

Resident Veterans that have a service-connected disability of at least 50% from the VA are eligible for a property tax exemption on the first $50,000 of the appraised value of their home.

Puerto Rico National Guard (FIGNA) Tuition Assistance Fund Service Member Spouse and Dependents

 The FIGNA Tuition assistance fund will provide financial assistance to Puerto Rico National Guard Service members, their Spouse and Children

Provides funding for:

• Graduate degree classes up to 18 credits, per fiscal year, $75 per credit for a maximum of $1,350 per year
• Undergraduate or vocational courses, up to 18 credits, maximum of $50 (or the cost per credit whichever is less) for a maximum of $900 per year
• Doctorate students are awarded a maximum of $1,000 annually for two years.

Free Tuition at University of Puerto Rico and Regional Colleges for Puerto Rican Veterans

Puerto Rico offers free tuition at the University of Puerto Rico and its regional colleges for eligible Veterans.

Reduced Tuition at University of Puerto Rico and Regional Colleges for Dependents of Puerto Rican Veterans

Dependents of Veterans are eligible for a 50% reduction in tuition at the University of Puerto Rico and its regional colleges.

65th Infantry Regiment Scholarship for the Children of Veterans

The 65th Infantry Regiment Scholarship offers the Children of Veterans a scholarship when pursuing a bachelor’s or master’s degree. Students are authorized 12 credits per semester for a bachelor’s degree and 6-9 credits for a master’s degree.

Puerto Rico Veteran Government Employees, Time Off for Veterans Education

 Veterans that are Puerto Rico government employees are eligible to receive time off without pay to complete their degree. Veterans must be using federal or territory benefits to complete their degree.

Once a Veteran has earned their degree, they must return to the government employer within 180 days. Veterans must be reinstated to their previous position or another position of equal category, salary and rank.

Puerto Rico Education Benefit for Surviving Spouses and Children of Service Members Killed on Active Duty

The Surviving Spouse and Children of Service members that die in the line of duty while serving on active duty in the U.S. Armed Forces are eligible for a total exemption of tuition and fees at any Puerto Rico public higher education institution.

High School Diplomas for Puerto Rican Wartime Veterans

Puerto Rican Veterans who left high school before graduation to serve in the U.S. Armed Forces During World War I, World War II, Korea or Vietnam can request a diploma from the Puerto Rico Department of Education. This diploma may be awarded posthumously.

Readmission to a Puerto Rico University Institution for Service Members that are called to Active Duty

Service members that must leave a University of Puerto Rico educational institution due to active military service must be allowed to return to their course of study, if they apply for readmission within one year of their discharge from active duty.

Puerto Rico Government Employment Veteran Hiring Preference and Reinstatement to Position Rights

Puerto Rico offers a Veterans’ hiring preference to Veterans applying for employment, reinstatement, or promotion for a job in the government of Puerto Rico. Preference is given by adding 10 points or 10% (whichever is greater) to passing examination scores.

Veterans who are required to leave their government job due to being called to active-duty service and are not able to take any competitive tests can request to take the test within 180 days after returning to work. If the Veteran passes the test the Veteran’s name must be included in the corresponding list or register.

Puerto Rico government employees that are called to active service are entitled to be reinstated to the same or similar position if they apply within 180 days of receiving an honorable discharge from active duty. If the position is no longer available, the Veteran will have placement priority in another position within the government agency. The employee will retain all their rights and privileges including right to seniority as if they had continued working for the government as well as any development or growth in the position, they would have been eligible for.

The right to reemployment is for the entire time the Veteran is in active service in the U.S. Armed Forces, regardless of the number of years. This rule does not apply to government employees that voluntarily enlist to serve on active duty in the U.S. Armed Forces.

Service Credit in Puerto Rico Government Retirement System for Veterans

Any Veteran who is hired to a job in the government of Puerto Rico for the first time and becomes a participating member of the government retirement systems is eligible to purchase military service credit. Veterans can purchase up to five years’ service credit for the time they were on active duty in the U.S. Armed Forces, or they were using VA educational benefits.

Veterans will be required to pay any required contributions plus simple annual interest at 6% based on their salary.

Puerto Rico National Guard Differential Pay

Puerto Rico National Guard Service members that are civil service employees are eligible for the difference between their public employee salary and their military pay when ordered to territorial active duty.

Federal Employment Veteran’s Hiring Preferences

By Federal law, Veterans who are disabled or who served on active duty in the U.S. Armed Forces during certain specified time periods or in military campaigns are entitled to preference over non-Veterans in hiring into the Federal civil service and in retention during reduction in force. Veterans may be entitled to 5 or 10 points included in any scoring process for examination or interviews.

Uniformed Services Employment and Reemployment Rights Act (USERRA)

USERRA protects civilian job rights and benefits for Veterans and members of reserve components. USERRA also protects Service member rights and benefits by clarifying the law, improving enforcement mechanisms, and adding Federal Government employees to those employees already eligible to receive Department of Labor assistance in processing claims.

Absence from Work for Military Duty

 USERRA establishes the cumulative length of time that an individual may be absent from work for military duty and retain reemployment rights to five years. Exceptions to the five-year limit, include initial enlistments lasting more than five years, periodic National Guard and Reserve training duty, and involuntary active duty extensions and recalls, especially during a time of national emergency. USERRA establishes that reemployment protection does not depend on the timing, frequency, duration, or nature of an individual’s service if the basic eligibility criteria are met.

Disability Accommodation

USERRA provides protection for disabled Veterans, requiring employers to make reasonable efforts to accommodate the disability. Service members recovering from injuries received during service or training may have up to two years from the date of completion of service to return to their jobs or apply for reemployment.

Return to Work without Loss of Seniority

USERRA provides that returning Service members are reemployed in the job that they would have attained had they not been absent for military service, with the same seniority, status and pay, as well as other rights and benefits determined by seniority. USERRA also requires that reasonable efforts (such as training or retraining) be made to enable returning Service members to refresh or upgrade their skills to help them qualify for reemployment. USERRA also provides that while an individual is performing military service, they are deemed to be on a furlough or leave of absence and are entitled to the non-seniority rights accorded other individuals on non-military leaves of absence.

Extension of Health and Pension Plans

Health and pension plan coverage for Service members is provided for by USERRA. Individuals performing military duty of more than 30 days may elect to continue employer sponsored health care for up to 24 months; however, they may be required to pay up to 102% of the full premium. For military service of less than 31 days, health care coverage is provided as if the Service member had remained employed. USERRA clarifies pension plan coverage by making explicit that all pension plans are protected.

Discounted Auto registration for Puerto Rico National Guard Service Members

Puerto Rico National Guard Service members are eligible for a discounted auto registration fee of $35.

Free Puerto Rico Veterans License Plates

Puerto Rico offers one free license plate to eligible Veterans; additional license plates can be requested for $12.

Puerto Rico Department of Driver Services Benefits for Disabled Veterans

The Territory of Puerto Rico offers several benefits for Puerto Rican Veterans. A short description of these benefits is listed below.

Automobiles Provided by the U.S. Department of Veterans Affairs to Disabled Veterans Free from Taxes

Vehicles provided to disabled Veterans with funds from the VA are exempt from vehicle taxes and license fees. Replacement vehicles can also receive this exemption as long as the vehicle being replaced has been owned by the Veteran for their personal use for 4 years.

100% Disabled Veterans Exempt from Fees for License Plates or Driver’s Licenses

Disabled Veterans that have a service-connected disability rating of 100% from the VA are exempt from taxes on their vehicle and are not required to pay any fees for their license plate or driver’s license.

Exemption of Fees for Veterans over Age 60

Veterans over 60 years old, even if even if they do not have a service-connected disability, are exempt from taxes on their vehicle and are not required to pay any fees for their license plate or driver’s license.

Puerto Rico National Guard Service Members and Retired Service Members Group Insurance

The Puerto Rico National Guard Institutional Trust provides $5,000 in life insurance for Puerto Rico National Guard Service members and retired Service members.

Puerto Rico National Guard Service Members Covered by Workers’ Compensation Laws while on Territorial Active Duty

National Guard Service members’ territorial active duty receive workers’ compensation for any illness injury disability or death.

U.S. Department of Veterans Affairs Life Insurance

The VA provides valuable life insurance benefits to Veterans, active and reserve component Service members and their Families to provide financial security given the extraordinary risks involved in military Service. The VA provides the following life insurance benefit programs:

• Servicemembers’ Group Life Insurance (SGLI)
• Veterans’ Group Life Insurance (VGLI)
• Family Servicemembers’ Group Life Insurance (FSGLI)
• Servicemembers’ Group Life Insurance Traumatic Injury Protection Program (TSGLI)
• Service-Disabled Veterans’ Life Insurance (S-DVI)
• Veterans’ Mortgage Life Insurance (VMLI)

Discounts for Veterans and their Dependents at Puerto Rico National Parks and Recreation Areas

Veterans, their Spouses and minor and/ or disabled Children are eligible for a 10% discount on fees charged in Puerto Rico parks, such as beaches, zoos, aquariums, vacation centers, camping areas, as well as recreational areas. This benefit is transferable to the Surviving Spouse and to the minor and/ or disabled Children upon the death of the Veteran.

Puerto Rico National Guard Retired Service Member Annuity Until Age 60

Retired Puerto Rico National Guard Service members between the ages of 55 and 59 will receive a $175 per month annuity payment.

Puerto Rico National Guard Service Members and Retired Service Members Funeral Insurance

National Guard Service members and retired Service members are eligible for $3000.00 to pay for funeral expenses.

Puerto Rico National Cemetery at Bayamon

Located in Bayamon, the Puerto Rico National Cemetery provides a dignified final resting place for Veterans of Puerto Rico, U.S. Virgin Islands, the Caribbean Region, Central and South America.

War Surplus Property Exempt from Taxes for Puerto Rican Veterans

War surplus property acquired by Veterans is exempt from all types of taxes or duties. War surplus must be for the personal use of the Veteran and must not have a total value of more than $5,000.

Documents From Puerto Rico Government Offices Provided Free of Charge to Veterans and their Dependents

All Puerto Rico government agencies will provide copies of official documents used for benefits claims free of charge to Veterans, Spouses, Surviving Spouses and their dependent Children.

Puerto Rico Income Exemption for Veterans and Surviving Spouses when Applying for Public Assistance

Low-income Veterans and their Surviving Spouse do not have to include VA Enhanced or Special Monthly Pension income when determining eligibility for public assistance.

U.S. Department of Veterans Affairs Facilities in Puerto Rico

The VA has numerous resources available for Veterans and Family members. Please see the local location listing for your nearest facility.

U.S. Department of Veterans Affairs Cemeteries in Puerto Rico

The VA National Cemetery Administration maintains one national cemetery in Puerto Rico. Please see the local location listing for the nearest cemetery.