Micronesia Tax Tables 2023 - Tax Rates and Thresholds in Micronesia
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This page contains the tax table information used for the calculation of tax and payroll deductions in Micronesia in 2023. These tax tables are used for the tax and payroll calculators published on iCalculator™ FM, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Micronesia or would like to add to or suggest amendments to the information herein then please contact us.
2023 Tax Tables [Quick Links]
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Micronesia Personal Income Tax Tables in 2023
The Income tax rates and personal allowances in Micronesia are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Micronesia Tax Calculator 2023.
Micronesia Residents Income Tax Tables in 2023
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 6% | Income from $ 0.000.00 | to | $ 11,000.00 |
| 10% | Income from $ 11,000.01 | | and above |
Micronesia Non-residents Income Tax Tables in 2023
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 6% | Income from $ 0.000.00 | to | $ 11,000.00 |
| 10% | Income from $ 11,000.01 | | and above |
Micronesia Social Security and Payroll Deduction Rates in 2023
In the Federated States of Micronesia (FSM), the social security system requires contributions from both employees and employers. These contributions fund various benefits, providing financial security and support to workers and their families. The main components of these deductions include retirement benefits, disability benefits, and survivors' benefits.
Micronesia Social Security in 2023: Rates for Employers and Employees| Category | Employee | Employer | Total |
|---|
| Social Security | 7.5% | 7.5% | 15% |
Micronesia Social Security and Payroll Deduction in 2023: Earnings Thresholds for Employers and Employees| Category | Employee | Employer |
|---|
| Min. | Max. | Min. | Max. |
|---|
| Social Security | $ 1,200.00 | $ 2,800.00 | $ 1,200.00 | $ 28,000.00 |
In the Federated States of Micronesia, social security deductions are not deductible when calculating taxable income. This means that the contributions employees make to social security are included in their gross income and are subject to income tax. Therefore, these social security contributions do not reduce the taxable income of employees, and the overall income tax liability is calculated on the gross income before any social security deductions are made. This approach differs from some other tax systems where social security contributions are deductible.
Micronesia VAT Rates in 2023
VAT rates for Micronesia are reviewed annually, you can use the VAT Calculator to calculate VAT due in Micronesia or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
Micronesia VAT Rates| VAT Rate | VAT Description |
|---|
| 3% | Basic |
| 5% | Standard Rate |
Historic Tax Tables supported for Micronesia
The following tax tables are supported by iCalculator™ FM as part of the suite of free tax tools we provide for Micronesia.