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Micronesia Salary Calculator 2026

Free Micronesia salary calculator (2026): estimate take-home pay for employees and the self-employed. Educational, not tax advice.

Simon Bodych

by Simon Bodych

Methodology & sources

Methodology - Federated States of Micronesia (2026)

Educational model - not tax advice. Currency USD. The FSM has a national wage tax on employees and a separate gross revenue tax on businesses; the national taxes and Social Security are uniform across all states.

Employee (FSM wage tax)

  • Wage income is taxed under the national wage tax (54 FSMC 121): 6% on the first $11,000 of annual wages and salaries, and 10% on the excess above $11,000. The tax is levied on gross wages, with no tax-free threshold and no universal personal allowance.
  • Employees earning less than $5,000 in a calendar year may claim a $1,000 deduction from taxable wages through the refund process (54 FSMC 122-123). This is a low-income relief that applies only below the $5,000 annual band.
  • FSM Social Security (employee share) is 7.5% of taxable wages. The taxable wage base is capped at $7,000 per quarter, that is $28,000 per year (4 x $7,000).
  • The employer matches Social Security at 7.5% on the same $28,000 annual base cap, so the combined employee plus employer rate is 15%.
  • The FSM wage tax makes no distinction between residents and non-residents. There is no national tax on investment income or capital gains.
  • Out of scope: state-level minimum wages and any additional state-level taxes.

Sources: FSM Code Title 54, Chapter 1 (Taxation), FSM Social Security Administration FAQ.

Self-employed (gross revenue tax)

  • Self-employed persons and sole traders are not subject to the wage tax. They pay the FSM gross revenue tax on gross business revenue, with no deduction of business expenses (54 FSMC 141).
  • Gross revenue of $2,000 or less per year is exempt. On revenue up to $10,000 a fixed $80 per year applies (a flat dollar amount, charged once when annual revenue exceeds $2,000). On the portion of annual gross revenue above $10,000, an additional 3% applies.
  • Expenses are shown for context only and do not reduce the gross revenue tax. Net is revenue minus expenses minus the gross revenue tax.
  • Self-employed Social Security coverage is limited in the FSM. General sole traders without employees have limited or no mandatory coverage; the statutory scope is provisional, so no mandatory self-employed Social Security contribution is deducted in this model.
  • Out of scope: mandatory self-employed Social Security (provisional statutory scope) and state-level taxes.

FSM Code Title 54, Chapter 1 (Taxation).