PW · Oceania · USD
Palau
Tax rates
Income Tax
12%
Top rate, progressive scale
Source: Government of Palau — Bureau of Revenue and Taxation, Wages and Salary Tax · as of 2026-07-20VAT
10%
Standard rate
Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2023-01-01Capital Gains Tax
0%
Source: Government of Palau — Ministry of Finance, Bureau of Revenue and Taxation · as of 2026-07-19Crypto Tax
0%
Source: Government of Palau — Ministry of Finance, Bureau of Revenue and Taxation · as of 2026-07-19Wealth Tax
0%
Not levied
Source: Palau National Code, Title 40 (Revenue and Taxation) — official text · as of 2026-07-18
No verified data yet for: Corporate Tax.
Estimate your income tax
Enter a gross annual salary to estimate 2026 national income tax for Palau using verified brackets — total tax, effective and marginal rate, net income, and the per-band breakdown. National income tax only; social contributions and sub-national taxes are excluded unless the notes say otherwise. The full calculator covers every country with verified rates.
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Brackets, notes & in practice
Income Tax
| Threshold | Rate |
|---|---|
| USD 0 | 6% |
| USD 8,000 | 10% |
| USD 40,000 | 12% |
Palau's personal income tax takes the form of a Wages and Salary Tax on employees' compensation, with progressive rates of 6% on the first $8,000, 10% on wages up to $40,000, and 12% above that amount. Wages and Salary Tax is the only general individual income levy among the taxes the Bureau administers.
VAT
The Palau Goods and Services Tax (PGST) took effect on 1 January 2023.
In practice
- Filing
Businesses with average annual taxable supplies above $50,000 may register for PGST voluntarily; registration is compulsory above $300,000, or immediately for holders of a Foreign Investment Approval Certificate and certain state-owned enterprises. Hospitals, medical clinics, non-profit education providers, and non-profit corporations are exempt from the compulsory-registration requirement. Registered businesses file and pay PGST monthly, due the 30th day after each period ends.
Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2026-07-27- Exemptions
Supplies of financial services, including loans, deposits, insurance, and securities dealing, are exempt from PGST and excluded from the registration-threshold calculation. Zero-rated supplies, which remain taxable at 0% with input credits still claimable, include exported goods, international transport and telecommunications services, and prescription medicines supplied to licensed pharmacies or medical facilities.
Source: Palau Bureau of Revenue & Taxation — PGST, Types of Supplies · as of 2026-07-27
Capital Gains Tax
Palau's Bureau of Revenue and Taxation administers a Goods and Services Tax, Business Profit Tax, Gross Revenue Tax, Wages and Salary Tax, and several narrower fees and excises, with no capital gains tax among them.
Crypto Tax
Palau's Bureau of Revenue and Taxation enumerates every tax it administers — the Goods & Services Tax, Business Profit Tax, Gross Revenue Tax, Wages and Salary Tax, and several smaller excise and transaction levies — and none of them is a capital gains tax or reaches an individual's investment gains. A personal disposal of cryptocurrency falls outside every listed tax base.
Wealth Tax
No general net wealth tax is levied in Palau. The Palau National Code, Title 40 (Revenue and Taxation), Division 2 (Taxation), covers wages and salary tax, gross revenue and net income tax, import tax, other taxes (hotel/vessel occupancy tax, amusement device tax, departure tax, road use tax, foreign water vessel tax, fish export tax, remittance tax), business licenses, and several other chapters covering specific levies (including Tobacco Excise Tax and the Pristine Paradise Environmental Fee) and administration — no chapter imposes a tax on individuals' total net worth.