iCalculator™ FM: Micronesia Tax Calculators

Welcome to iCalculator™ FM, your comprehensive suite of free tax calculators for Micronesia. iCalculator™ has provided free tax calculators for Micronesia since 2019. Since those early days we have extended our resources for Micronesia to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Micronesia Tax Calculator and salary calculators within our Micronesia tax section are based on the latest tax rates published by the Tax Administration in Micronesia. In this dedicated Tax Portal for Micronesia you can access:

Micronesia Tax Calculator 2024/25

The Micronesia Tax Calculator below is for the 2024 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Micronesia. This includes calculations for

1. Employees in Micronesia to calculate their annual salary after tax.
2. Employers to calculate their cost of employment for their employees in Micronesia.

Discover Micronesia

The Federated States of Micronesia (FSM) is an island country located in the western Pacific Ocean, comprising more than 600 islands. These islands are grouped into four states: Yap, Chuuk, Pohnpei, and Kosrae. The country is part of the larger Micronesia region, which includes several other island nations and territories. Neighboring countries include Palau to the west, Guam and the Northern Mariana Islands to the north, and the Marshall Islands to the southeast. Explore more about these neighboring countries: Palau, Guam, Northern Mariana Islands, and Marshall Islands.

Micronesian culture is diverse and rich, characterized by a complex social structure, traditional customs, and practices. The region's cultural heritage includes a variety of languages, arts, and crafts, particularly notable for their intricate carvings and navigational skills. Community and family play a central role in Micronesian society, with traditional leaders often holding significant influence. Festivals, storytelling, and dance are vital aspects of Micronesian culture, showcasing the region's rich history and traditions.

The economy of the Federated States of Micronesia is relatively small and heavily dependent on foreign aid, particularly from the United States under the Compact of Free Association. The primary economic sectors include subsistence farming and fishing. Agriculture is focused on crops like breadfruit, taro, and bananas, while fishing is largely for local consumption. Tourism is a growing sector, with the islands' natural beauty and rich marine life attracting visitors. However, the country's remote location and lack of infrastructure pose challenges to economic development.

Additionally, the FSM government is involved in various sectors, including utilities and telecommunications, playing a significant role in the economy. The challenges of economic development in Micronesia are compounded by environmental concerns, such as climate change and natural disasters, which significantly impact the islands. Despite these challenges, the cultural heritage and natural beauty of Micronesia offer potential for sustainable development and growth, particularly in eco-tourism and cultural tourism.

Overview of Taxation in Micronesia

The tax system in the Federated States of Micronesia (FSM) comprises various types of taxes that are significant for both individuals and businesses. The primary components include income tax, which is levied on the earnings of individuals and businesses, and import duties, which are applied to certain goods entering the country. The tax structure in the FSM is relatively straightforward, with an emphasis on simplicity and ease of administration.

Income tax in the FSM is characterized by its progressive nature, where the rate increases as income levels rise. This structure aims to ensure a fair distribution of the tax burden across different income groups. Corporate tax is also a key component, targeting the profits of businesses operating within the FSM. Import duties, another important aspect of the FSM tax system, affect the cost and availability of imported goods, thus influencing both consumers and businesses.

Understanding the nuances of the FSM tax system is vital for residents and businesses operating in the region. The system aims to balance revenue generation for public services with economic growth and development. For those seeking the latest information on Micronesian tax regulations, including current tax tools and tables, visit our comprehensive tax hub and calculator, an essential resource for navigating the complexities of taxation in the Federated States of Micronesia.