Federated States of Micronesia Personal Income Tax
Detailed personal income tax rates and rules for Federated States of Micronesia in 2026.
The FSM levies a wage and salary tax on employment income. The first USD 11,000 of gross wages is taxed at 6%, and wages exceeding USD 11,000 are taxed at 10%. There is no tax-free threshold. The tax applies to all wages and salaries earned within the FSM. Employers withhold the tax at source. Investment income, interest, and dividends are generally not subject to income tax at the national level.
| Income Range (USD) | Tax Rate |
|---|---|
| $0 – $11K | 6% |
| $11K+ | 10% |
Filing Deadline
March 31 for annual wage tax returns
Residency Rule
All individuals earning wages in the FSM are subject to wage tax regardless of residency status. The FSM does not distinguish between residents and non-residents for wage tax purposes.
How Federated States of Micronesia Income Tax compares
Federated States of Micronesia’s top personal income tax rate of 10% is the 169th highest of 203 countries TaxAtlas tracks, below the global average of 27.7% and Oceania’s regional average of 20.1%.
