Oceania & Pacific
Micronesia tax rates 2026
A gross revenue tax rather than a conventional corporate income tax, with the US dollar as legal tender and Compact of Free Association funding underpinning the budget.
Worldwide (residence-based)
Last verified
The taxes
| Personal income (top) | 10%A flat wage and salary tax of 6% on the first USD 11,000 and 10% above it. |
|---|---|
| Corporate income | None |
| Capital gains | There is no general corporate income tax. A gross revenue tax applies instead. |
| VAT / GRT | None |
| Dividends (WHT) | None |
| Interest (WHT) | None |
| Royalties (WHT) | None |
| Social security (employee) | 7.5% |
| Social security (employer) | 7.5% |
| Wealth tax | None |
| Inheritance / estate | None |
| Property tax | State-level property taxes are limited. |
| Other | A gross revenue tax of 3% applies to business turnover above a threshold. Citizens may live and work in the United States under the Compact of Free Association. |
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
- Special regime
- Compact of Free Association: visa-free residence and work rights in the United States for citizens
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.