Oceania & Pacific
Micronesia: tax at a glance
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
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.