Compare taxes and see how much you save moving from Dominican Republic to United States
The United States has the world's largest Dominican diaspora — over 2 million Dominican-Americans, overwhelmingly concentrated in New York City (Washington Heights/Inwood is the largest Dominican community outside Santo Domingo), New Jersey, and Florida. Dominican immigration to the US accelerated after the 1965 Immigration Act and has continued through family reunification and professional migration. Remittances from the US to the DR represent approximately 10% of Dominican GDP — the largest single source of foreign exchange. The DR's territorial tax system means that DR nationals living in the US pay no Dominican income tax on their US earnings.
Progressive DGII Tax, DOP income
Dominican Republic's Dirección General de Impuestos Internos (DGII) taxes residents on Dominican-source income at progressive rates: 0% (up to DOP 416,220/year, approx. USD 7,200 at market rates), 15% (DOP 416,221–624,329), 20% (DOP 624,330–867,123), 25% above DOP 867,123. Non-residents: 27% flat on Dominican-source income. Social Security: AFP (pension) 2.87% employee / 7.1% employer; SFS (health): 3.04% employee / 7.09% employer. The Dominican Republic does not tax overseas income of residents — a territorial tax system. USD/DOP approximately 58–60.
Federal 10–37% + State Tax, FICA
US federal income tax: 10–37% on ordinary income; 0%/15%/20% on long-term capital gains. Standard deduction: $14,600 (single) / $29,200 (MFJ) in 2024. FICA: 7.65% employee (6.2% Social Security + 1.45% Medicare). State income taxes: 0% (FL) to 13.3% (CA). Dominican-Americans concentrate in New York (state + NYC: up to 14.776%) and New Jersey (6.37%). US taxes citizens and residents on worldwide income.
At $55,000 annual income:
A Dominican-American in New York City earning $55,000 pays approximately 38–40% combined (federal income tax + FICA + NY state + NYC local tax). Equivalent income in the Dominican Republic would face approximately 20–22% in combined income tax and social contributions. US nominal wages are 8–12× DR equivalents, making US employment financially compelling despite higher taxation. USD/DOP (~58–60) means US dollar savings convert well for DR family support and property.
| Income | DO Tax | US Tax | Savings | 10-Year |
|---|---|---|---|---|
| $35,000 | ~15% DR | ~30% US (federal + FICA + NY/NJ) | US 15% higher | US Social Security builds retirement entitlement; DR-US totalization agreement allows combining work credits |
| $60,000 | ~20% DR | ~36% US (NY area) | US 16% higher | USD/DOP ~59: $10K savings = ~590,000 DOP — meaningful for Santo Domingo property or family support |
| $120,000 | ~24% DR | ~43% US (NYC combined) | US 19% higher | DR territorial tax: no DR tax on US earnings — zero DGII obligation for DR nationals in the US |
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File With TFX — Expert Expat CPAs →No — the Dominican Republic uses a territorial tax system. Dominican nationals who reside outside the DR owe no DGII income tax on their foreign (US) earnings. Only Dominican-source income (rental property in the DR, DR business income, DR dividends) is taxable by the DGII for non-residents. This means Dominican-Americans in New York or New Jersey pay US federal and state taxes on their US income but owe nothing to the Dominican tax authority on those same earnings. This territorial approach makes the DR one of the most tax-favorable home countries for diaspora workers.
USD-to-DOP transfers: Remitly and WorldRemit offer competitive rates and are very popular with Dominican-Americans. Vigo (a subsidiary of Western Union) has extensive agent networks in the DR. Wise offers mid-market rates with transparent fees. In-person money transfer agencies in Washington Heights (NYC) and Providence, RI compete vigorously on rates — often the best available for cash pickups. The DR has extensive receiving agent networks through banks (Banco Popular, BHD León, Banreservas) and supermarkets. Mobile wallets are growing in the DR but less dominant than in Africa. The USD/DOP rate (~58–60) has been relatively stable but DOP has depreciated gradually.
Yes — the Dominican Republic and the United States have a Social Security Totalization Agreement that prevents double payment of social security taxes and allows combining work credits. Under the agreement: workers pay social security taxes in only one country at a time (avoiding dual taxation). If you split a career between the DR and the US, you can combine your DR (AFP) and US Social Security work credits to qualify for benefits from both countries at retirement age. This is particularly relevant for Dominican-Americans who worked in the DR for some years before moving to the US — those DR work years count toward qualifying for a DR pension, and the US Social Security years count toward qualifying for US benefits.