- Top income tax rate not set 0
- Corporate tax rate not set 0
refreshed from IRS possession pages, Pub 570, TEB lesson 4, PwC US and CRS; corrected which taxes and rules apply, added sources and notes, verification date and data year set to 2026.
UM
United States Minor Outlying Islands
North America
USD
UM · UMI · #248 · 2 cities
Nomad score
23/100
Compare
Top income tax
None
None system
Corporate tax
None
VAT/GST
None
standard rate
Tax residency
—
United States Minor Outlying Islands tax profile
Data year: 2026
- Tax system
- None The United States Minor Outlying Islands have no local government, tax department or territory-specific income tax code. The IRS classifies Baker, Howland, Jarvis, Johnston, Kingman Reef, Midway, Palmyra, Wake and similar unincorporated U.S. islands (including Navassa) in the group of possessions that do not impose their own income taxes. Anyone with tax residence or U.S.-source employment in these areas is subject to U.S. federal income tax and federal withholding rules, not the territorial exclusions available in Puerto Rico, Guam, American Samoa, the CNMI or the U.S. Virgin Islands. Headline rates here are zero because they describe the local jurisdiction only; federal rates and brackets are on the United States tax profile.
- Top PIT rate
- No Income Tax
- Corporate tax rate
- No Corporate Tax
- VAT/GST
- No VAT/GST
- Capital gains tax
- No Capital Gains Tax
- Social security (employee)
- Rate not recorded
- Social security (employer)
- Rate not recorded
- Dividend withholding
- 0.0%
- Interest withholding
- 0.0%
- Royalty withholding
- 0.0%
- Treaty count
- Treaty count not recorded
Tax residency
- Residency rules
- There is no separate territorial income-tax residency test. IRC section 937 bona fide residence rules apply only to American Samoa, Guam, Puerto Rico, the CNMI and the U.S. Virgin Islands. For federal purposes, U.S. citizens and residents use the substantial presence test and other U.S. rules on the United States tax profile. The islands are largely uninhabited (scientific and military access only); practical tax questions almost always involve U.S. federal status rather than a UM day count.
- Exit tax
- No
- CFC rules
- No
Filing information
- Fiscal year
- 01-01 – 12-31
Sources
- IRS — Persons employed in U.S. possessions (accessed Oct 9, 2026) Islands without local governments (Baker, Howland, Jarvis, Johnston, Kingman Reef, Midway, Palmyra, Wake, etc.) — residents subject to U.S. federal income tax and withholding
- IRS Publication 570 — Tax Guide for Individuals With Income From U.S. Territories (2025) (accessed Oct 9, 2026) Lists Baker, Howland, Jarvis, Johnston, Kingman Reef, Midway, Palmyra and Wake as insular areas outside the five territories with local filing benefits; income does not qualify for possession-source exclusions
- IRS TE/GE — U.S. Territories/Possessions (TEB Phase III Lesson 4) (accessed Oct 9, 2026) Territories without own government and tax system — residents file U.S. federal individual and corporate returns
- PwC Worldwide Tax Summaries — United States (accessed Oct 9, 2026) Cross-check for federal PIT/CIT/CGT context when no local UM code exists
- CRS — Tax Policy and U.S. Territories (R44651) (accessed Oct 9, 2026) Background on inhabited territories with local tax systems versus federal coordination