US Virgin Islands (USVI) residents pay a different set of taxes compared to United States mainland residents. They are exempt from federal income taxes, but they do pay a local income tax, excise taxes, and property taxes. The local income tax rate varies depending on the island of residence, and excise taxes are levied on certain goods and services. USVI residents also pay a property tax, which is based on the assessed value of their property.
Federal Taxes
USVI residents pay the same federal income tax rates as residents of the 50 states. This includes the following taxes:
- Income Tax
- Social Security Tax
- Medicare Tax
However, USVI residents do not pay federal excise taxes on gasoline, diesel fuel, or alcohol.
The following table shows a comparison of the federal taxes paid by USVI residents and residents of the 50 states:
| Tax | USVI Residents | 50 State Residents |
| Income Tax | Same | Same |
| Social Security Tax | Same | Same |
| Medicare Tax | Same | Same |
| Federal Excise Tax on Gasoline | 0% | 18.4 cents per gallon |
| Federal Excise Tax on Diesel Fuel | 0% | 24.4 cents per gallon |
| Federal Excise Tax on Alcohol | 0% | Varies |
Local Taxes
Local taxes in the US Virgin Islands (USVI) include a Gross Receipts Tax (GRT), a hotel occupancy tax, motor vehicle excise tax, property tax, and fuel tax.
The GRT is a 4.5% tax on the gross receipts of businesses, including sales of goods and services. The hotel occupancy tax is a 10% tax on the rental of hotel rooms. The motor vehicle excise tax is a one-time tax of 6% of the purchase price of a new or used motor vehicle.
Property Tax
Property tax in the USVI is assessed by the local government based on the assessed value of the property. The tax rate varies depending on the location and type of property.
Fuel Tax
The USVI fuel tax is a per-gallon tax on gasoline, diesel fuel, and other motor fuels. The tax rate is currently 27.5 cents per gallon.
| Tax | Rate |
|---|---|
| Gross Receipts Tax | 4.5% |
| Hotel Occupancy Tax | 10% |
| Motor Vehicle Excise Tax | 6% |
| Property Tax | Varies |
| Fuel Tax | 27.5 cents per gallon |
Real Estate Taxes
Residents of the U.S. Virgin Islands (USVI) are subject to two types of real estate taxes: property tax and excise tax.
Property Tax
- Assessed by the local government on the value of the property, including land and improvements.
- Rates vary by municipality, ranging from 0.25% to 1% of the assessed value.
- Due annually, typically in November.
- May be eligible for exemptions or reductions for homeowners, seniors, or veterans.
Excise Tax
- Levied on the sale or transfer of real property.
- Rate of 4% of the purchase price or fair market value.
- Due at the time of closing.
- May be eligible for exemptions or reductions for certain types of properties or transactions.
Additional Information
Property tax rates and exemptions are determined by the individual municipalities in the USVI. For specific details regarding rates and exemptions, it is recommended to contact the local tax assessor or consult the municipal ordinances.
Excise Taxes
Excise taxes are levied on specific goods and services consumed in the USVI. These taxes are typically included in the price of the item or service.
- Alcohol tax: 10% on all alcoholic beverages
- Tobacco tax: $4.25 per pack of cigarettes
- Fuel tax: $0.17 per gallon of gasoline
- Hotel occupancy tax: 10% on hotel room stays
- Car rental tax: 10% on car rentals
- Telecommunications tax: 9% on telecommunications services
And there you have it, folks! Now you know what kind of taxes you’ll be dealing with if you decide to make the beautiful US Virgin Islands your home. Remember, this is just a brief overview, so if you have any specific questions, be sure to do some further research or chat with a local accountant.
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