Marshall Islands Tax Rates
The Republic of the Marshall Islands (RMI) uses the United States Dollar and operates a simple tax system centered on a wage tax and gross revenue tax. As a Compact of Free Association state with the US, the Marshall Islands relies heavily on US financial assistance. The country is also a major international ship registry (the world's third-largest by tonnage), which generates significant revenue. There is no income tax on investment income, no capital gains tax, and no VAT/GST.
Top Income Tax Rate
12%
Corporate Tax Rate
3%
VAT / Sales Tax
0%
Capital Gains Tax
0%
Detailed Tax Information
Income Tax Brackets
The Marshall Islands imposes a wage tax on employment income. Wages up to USD 10,400 are taxed at 8%, and wages exceeding USD 10,400 are taxed at 12%. The tax applies to all wages and salaries earned in the Marshall Islands. There is no tax-free threshold. Employers withhold the tax from employee compensation. Investment income such as interest and dividends is not subject to income tax.
| Income Range | Tax Rate |
|---|---|
| $0 – $10K | 8% |
| $10K+ | 12% |
Corporate Tax
The Marshall Islands imposes a Gross Revenue Tax (GRT) of 3% on the gross revenue of businesses operating in the country. This applies in lieu of a traditional corporate income tax based on net profits. The GRT is payable quarterly. The Marshall Islands is known internationally for its ship and corporate registry, though entities registered solely for international purposes (non-domestic IBCs) may be exempt from local taxation on income not sourced within the RMI.
Standard Rate
3%
Capital Gains Tax
The Marshall Islands does not impose a capital gains tax. Gains from the disposal of property, shares, or other investments are not subject to tax.
Rate
0%
VAT / Sales Tax
The Marshall Islands does not have a VAT or GST system. Government revenue from consumption is generated through import duties on goods entering the country. There have been discussions about introducing a consumption tax to broaden the revenue base, but no such tax has been implemented.
Standard Rate
0%
Cryptocurrency Tax
The Marshall Islands does not have specific cryptocurrency tax legislation. The country passed the Sovereign Currency Act in 2018 to issue a digital currency (SOV) as legal tender alongside the USD, though implementation has faced delays. Income from crypto trading as a business could potentially fall under the gross revenue tax.
Tax Treaties
The Marshall Islands does not have any double taxation agreements. Its tax relationship with the United States is governed by the Compact of Free Association. The simple gross revenue tax system reduces cross-border tax complexity.
Treaty Network
0
Double taxation agreements
Key Details
Relocate to Marshall Islands
See how much you could save by moving here from your current country.
+$6K
Tax in United States
$24K
24.4% effective
Tax in Marshall Islands
$19K
18.6% effective
You Save
23.7%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
