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VI

US Virgin Islands

Caribbean USD

VI · VIR · #208 · 5 cities

Nomad score 50/100 Compare
Top income tax 37.0% Worldwide system
Corporate tax 21.0%
VAT/GST None standard rate
Tax residency 183 days

US Virgin Islands tax profile

Data year: 2026

Tax system
Worldwide The USVI applies the Internal Revenue Code under a mirror system: “Virgin Islands” replaces “United States” in the IRC, and tax is collected by the Bureau of Internal Revenue (BIR) instead of the IRS. Bona fide residents report worldwide income on Form 1040 to the BIR. Domestic corporations are USVI-incorporated entities taxed on worldwide income; US-incorporated entities are foreign corporations taxed on USVI-source and effectively connected income.
Top PIT rate
37.0%
Corporate tax rate
21.0%
VAT/GST
No VAT/GST
Capital gains tax
20.0% Long-term capital gains and qualified dividends follow mirrored federal rates (generally 0%, 15% or 20% depending on income). Short-term gains are taxed as ordinary income. VIEDC certificate holders may reduce Virgin Islands tax on qualifying business income by 90%, which can flow through to resident owners on dividends and distributive shares.
Social security (employee)
7.7%
Social security (employer)
7.7%
Social security cap (annual)
USD 184,500
Dividend withholding
30.0%
Interest withholding
30.0%
Royalty withholding
30.0%
Treaty count
Treaty count not recorded
Tax authority: USVI Bureau of Internal Revenue (BIR) Website

Income tax brackets

Corporate
Corporate brackets
Bracket min Bracket max Rate
USD 0 and above 21.0%
Corporate surtax
Corporate surtax brackets
Bracket min Bracket max Rate
USD 0 and above 2.1%
Medicare Filing status: single
Medicare brackets
Bracket min Bracket max Rate Filing status
USD 0 and above 1.5% Filing status not recorded
USD 200,000 and above 0.9% single
Personal income Filing status: married_joint, single
Personal income brackets
Bracket min Bracket max Rate Filing status
USD 0 USD 24,800 10.0% married_joint
USD 0 USD 12,400 10.0% single
USD 12,400 USD 50,400 12.0% single
USD 24,800 USD 100,800 12.0% married_joint
USD 50,400 USD 105,700 22.0% single
USD 100,800 USD 211,400 22.0% married_joint
USD 105,700 USD 201,775 24.0% single
USD 201,775 USD 256,225 32.0% single
USD 211,400 USD 403,550 24.0% married_joint
USD 256,225 USD 640,600 35.0% single
USD 403,550 USD 512,450 32.0% married_joint
USD 512,450 USD 768,700 35.0% married_joint
USD 640,600 and above 37.0% single
USD 768,700 and above 37.0% married_joint
Social security
Social security brackets
Bracket min Bracket max Rate
USD 0 USD 184,500 6.2%
Local currency: USD

Special regimes (1)

Special regimes
NameTypeRate/amountDurationStatus
VIEDC Economic Development Commission (EDC) Congress-authorized incentives administered by the Virgin Islands Economic Devel... Percentage exemption 2.3% Duration not recorded Active

Tax residency

Days threshold
183 days
Residency rules
Since 2006, bona fide USVI residence under IRC §937 requires the presence test, no tax home outside the USVI, and no closer connection to the United States or another country. The presence test is met if any one of several conditions applies, including at least 183 days in the USVI in the tax year, no more than 90 days in the United States, or limited US earned income with more days in the USVI than in the United States. US citizens who are not bona fide USVI residents with USVI-source income file identical US and USVI returns and allocate tax using Form 8689.
Exit tax
No
CFC rules
No

Filing information

Fiscal year
01-01 – 12-31
Filing deadline
April 15
Extension deadline
October 15
Auto extension
Available
Calendar-year individual returns are generally due 15 April, with a six-month extension to 15 October when requested. Bona fide residents file Form 1040 (and Form 1040 INFO for non-USVI-source income) with the BIR. Income tax withholding is remitted to the BIR on Forms 501VI and 941VI; FICA and FUTA are remitted to the IRS Philadelphia Service Center per mirrored federal rules.

Sources

Change history

    • Income tax brackets updated
    • Special tax regimes updated

    Data year and verification date set to 2026; OASDI cap updated to USD 184,500; added 2026 mirror PIT/CIT/Medicare/SS brackets and the VIEDC special regime; refreshed notes and sources (bir.vi.gov, irs.gov).

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