Micronesia Tax Tables 2024 - Tax Rates and Thresholds in Micronesia

This page contains the tax table information used for the calculation of tax and payroll deductions in Micronesia in 2024. 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.

Micronesia Personal Income Tax Tables in 2024

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 2024.

Micronesia Social Security and Payroll Deduction Rates in 2024

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.

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.

Retirement Benefits: Contributions towards retirement benefits are designed to provide a stable source of income for individuals after they cease working due to age. This ensures financial support for retirees, helping them maintain a reasonable standard of living in their retirement years.

Disability Benefits: The social security system in the FSM also provides disability benefits. These benefits offer financial assistance to employees who are unable to work due to a disability, whether it is temporary or permanent. This support is crucial in helping affected individuals and their families manage their financial needs during difficult times.

Survivors' Benefits: Survivors' benefits are another critical component of the social security system. These benefits are provided to the families of deceased employees, particularly the dependents, ensuring financial support for them following the loss of a family member who was a breadwinner.

The social security system in the FSM plays a vital role in the socio-economic well-being of its workforce. For employers, contributing to this system is not only a legal obligation but also a fundamental aspect of their social responsibility towards their employees. This comprehensive system is designed to provide a safety net for workers and their families, ensuring support and security in various life circumstances.

Micronesia VAT Rates in 2024

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.

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.