Jurisdiction overviewTax in Northern Mariana Islands
Last reviewed: · by TaxProsRated editorial
Key points
The Commonwealth of the Northern Mariana Islands (CNMI) uses a modified mirror of the US federal Internal Revenue Code, administered by the CNMI Division of Revenue and Taxation. CNMI residents pay Northern Mariana Islands Territorial Income Tax (NMTIT) instead of federal income tax — rates parallel US federal brackets. A Business Gross Revenue Tax (BGRT) of 1.5–5% replaces VAT. USD is the sole currency. CNMI is a US Commonwealth under the 1976 Covenant, distinct from unincorporated territories like Guam and American Samoa.
Who is the CNMI tax authority?
The Division of Revenue and Taxation, part of the CNMI Department of Finance, administers NMTIT and all territorial tax obligations. Its website is cnmidof.net.
The legal foundation is the Northern Mariana Islands Covenant (1976) plus the Covenant-implementing legislation that adopted the US IRC with territorial modifications. CNMI is NOT in the IRS filing system for personal income tax — residents file a CNMI return, not a federal 1040.
Social Security and Medicare (FICA) do apply to CNMI employment, same as on the US mainland.
What is the CNMI tax year and when are returns due?
The standard CNMI tax year is the calendar year (1 January to 31 December). The annual return deadline mirrors the US federal calendar.
Who counts as a CNMI tax resident?
A person is a bona fide resident of CNMI if the CNMI is their tax home — that is, their regular place of business or employment, or their primary domicile.
CNMI residents file NMTIT with the Division of Revenue and Taxation. They do NOT file a federal 1040 for CNMI-source income. US citizens living in CNMI who also have US-mainland income may face a split-filing obligation — an area where a qualified practitioner is essential.
Non-residents with CNMI-source income file a CNMI non-resident return for that income only.
What are the CNMI personal income tax rates?
NMTIT mirrors the US federal IRC brackets. The 2024 federal rates apply to CNMI returns with CNMI-specific modifications:
| Taxable income (USD) | Rate |
|---|---|
| Up to 11,600 | 10% |
| 11,601 – 47,150 | 12% |
| 47,151 – 100,525 | 22% |
| 100,526 – 191,950 | 24% |
| 191,951 – 243,725 | 32% |
| 243,726 – 609,350 | 35% |
| Over 609,350 | 37% |
CNMI applies its own EITC-equivalent and Child Tax Credit equivalent under the NMTIT framework. Actual CNMI rebate amounts may differ from federal amounts — verify current figures with the Division of Revenue and Taxation.
FICA applies to all CNMI employment: Social Security (6.2% employee / 6.2% employer up to the wage base) and Medicare (1.45% / 1.45%). Self-employed CNMI residents pay both halves.
How does corporate tax work in the CNMI?
CNMI corporate income tax mirrors the US federal flat rate under TCJA 2017.
Mirror US federal flat rate (post-TCJA 2017). Applies to most CNMI-registered corporations.
CNMI Qualifying Certificate (QC) program grants preferential CIT, BGRT, and land-use concessions to qualifying investment projects. Rate varies by QC terms.
The CNMI does not levy a separate territorial franchise tax on most entities. BGRT (see below) functions as the consumption-layer business tax. Companies also pay FICA employer contributions.
Deep-dive: see small business tax in Northern Mariana Islands for sole proprietor vs LLC vs corporation comparison under NMTIT.
What is the Business Gross Revenue Tax (BGRT)?
CNMI has no VAT. Instead, the Business Gross Revenue Tax (BGRT) applies at rates of 1.5% to 5% on gross receipts, depending on the type of activity.
| Activity class | BGRT rate |
|---|---|
| General business and services | 5% |
| Manufacturing | 1.5% |
| Wholesale trade | 2% |
| Retail | 5% |
| Alcohol and tobacco | 5% plus excise |
BGRT is a turnover tax, not a value-added tax — there is no input-credit mechanism. Businesses pay BGRT on their full gross receipts regardless of costs. Hotels also pay a Room Occupancy Tax. Import duties apply at Saipan Port.
Deep-dive: see VAT and sales tax in Northern Mariana Islands for the BGRT filing calendar and sector-specific rates.
Currency framework — USD sole legal tender
No CNMI-specific currency. US Dollar only.
The US Dollar is the sole legal currency in CNMI — the same as in Guam (GU), American Samoa (AS), Marshall Islands (MH), Micronesia (FM), and Palau (PW). There is no CNMI-specific banknote or coin. No foreign-exchange complexity for USD-denominated transactions.
How are cryptoassets treated?
CNMI has no dedicated crypto-asset tax legislation. Because NMTIT mirrors the US federal IRC, IRS Notice 2014-21 and subsequent IRS guidance on crypto apply as the baseline.
Crypto held as a capital asset follows capital-gains treatment (short-term ordinary rates, long-term preferential rates). Crypto received as compensation is ordinary income at fair-market value. Because CNMI mirrors the IRC, the same rules that apply on the US mainland apply in CNMI — but filed with the Division of Revenue and Taxation, not the IRS.
Deep-dive: see crypto taxation in Northern Mariana Islands for CNMI-specific filing notes.
What about tax treaties?
CNMI is not a separate treaty jurisdiction. It is covered by the US treaty network to the extent US law provides, but NMTIT is a territorial income tax — not a federal tax — so bilateral treaty relief is complex and fact-specific.
Japan and South Korea are particularly relevant given CNMI's tourism economy, which draws heavily from Japanese and Korean visitors. Cross-border income from those countries has treaty implications that a qualified professional should examine.
CNMI distinctive status — 1976 Covenant and Commonwealth framework
The CNMI sits in a unique constitutional position. The 1976 Covenant gave the islands US Commonwealth status — the same umbrella term as Puerto Rico, but the two frameworks are distinct documents with different terms.
Sui generis status. US citizenship by birth. Self-government over internal affairs. Mirror tax code. Pre-2008: independent immigration controls.
Unincorporated territory via Organic Act. Mirror-code framework similar to CNMI but governed by different legislation. Similar BGRT-style structure.
Mirror-code framework under IRC §7654. Residents are US nationals, not US citizens by birth. Most restrictive of the Pacific US territories.
Compact of Free Association state. Sovereign nation. Own tax system. Not a US mirror-code territory. Entirely separate status.
The 2008 federal immigration takeover (Consolidated Natural Resources Act) phased out CNMI's independent immigration system by 2014. This had economic consequences — the garment manufacturing boom of the 1980s–1990s (which exploited US tariff-free access) collapsed after the WTO Multifibre Arrangement phaseout in 2005. Tourism — largely from Japan and South Korea — now drives roughly half of CNMI's GDP.
WWII history shapes the islands' identity: the 1944 Battle of Saipan and Tinian's role as a B-29 base from which the Hiroshima and Nagasaki missions flew remain significant cultural touchstones, particularly for Japanese visitors and tourism.
Where does CNMI sit in the US Pacific territory cohort?
CNMI anchors the Commonwealth slot in a five-member US Pacific territory cohort alongside Guam, American Samoa, US Virgin Islands, and Puerto Rico — all sub-federal jurisdictions with distinctive mirror-code or bespoke tax frameworks.
Pillar Two and GILTI position
The US has not enacted domestic OECD GloBE (Pillar Two) legislation. Congress has not converted GILTI to a GloBE-equivalent. As a US-mirror-code territory, CNMI follows the same federal posture — no Pillar Two minimum tax applies.
MNEs operating in CNMI face standard US/NMTIT treatment. No global minimum top-up tax applies in CNMI until Congress enacts GloBE domestically. Monitor US federal legislative developments for changes.
Meet a CNMI taxpayer
Common pitfalls for CNMI taxpayers
Several issues catch residents, businesses, and mainland-connected individuals off guard:
CNMI residents file with the Division of Revenue and Taxation — not the IRS. Sending a 1040 to the IRS is the wrong form in the wrong place.
BGRT is a gross-receipts turnover tax — not a VAT with recoverable input credits. Businesses pay on full gross receipts regardless of their own costs.
Moving from CNMI to the US mainland mid-year triggers a split-filing obligation — part-year CNMI return plus a federal 1040. Easy to mis-file without professional guidance.
Qualifying Certificate incentives are individually negotiated. Benefits (reduced CIT, BGRT exemptions, land-use) depend on meeting agreed investment and jobs thresholds.
Social Security and Medicare apply to CNMI employment at the same rates as the US mainland. Self-employed individuals pay both halves at the self-employment rate.
CNMI is not a separate treaty party. Cross-border income from Japan, South Korea, or other US treaty partners may not benefit from treaty relief in the same way as mainland income — NMTIT's territorial character complicates application.
Decision flow — do you need a CNMI tax pro?
When to talk to a CNMI tax pro
Some CNMI situations are straightforward. Others get complicated quickly:
- You have income from both CNMI and the US mainland in the same year
- You are moving from CNMI to the mainland (or vice versa) and the transition year is involved
- Your business holds or is applying for a Qualifying Certificate
- You receive income from Japan, South Korea, or another US treaty partner and want to understand whether treaty relief applies
- You run a hotel, resort, or tourism business and want to confirm BGRT classification and Hotel Occupancy Tax obligations
- You are self-employed and need to reconcile NMTIT estimated tax with FICA self-employment obligations
- You received a notice from the Division of Revenue and Taxation
- Your cryptoasset gains are substantial and require CNMI-specific filing guidance
This page is general information only — not personal guidance for your specific situation. Tax rules change. Always verify current figures with the CNMI Division of Revenue and Taxation (cnmidof.net) or a licensed CNMI practitioner before filing.
Frequently asked
Who administers CNMI taxes?
The CNMI Division of Revenue and Taxation, part of the Department of Finance, administers NMTIT (personal and corporate income tax) and the Business Gross Revenue Tax. Its website is cnmidof.net. CNMI residents do NOT file with the IRS.
What is the CNMI tax framework?
CNMI uses NMTIT — Northern Mariana Islands Territorial Income Tax — which mirrors the US federal IRC with CNMI-specific modifications. Residents file locally with the Division of Revenue and Taxation, not the IRS. FICA (Social Security and Medicare) applies to all CNMI employment, same as the US mainland.
What are the CNMI personal income tax rates?
NMTIT mirrors US federal brackets: 10% up to $11,600, 12% to $47,150, 22% to $100,525, 24% to $191,950, 32% to $243,725, 35% to $609,350, and 37% above that. CNMI applies its own EITC-equivalent and Child Tax Credit equivalent under the NMTIT framework.
What is the BGRT in the CNMI?
The Business Gross Revenue Tax (BGRT) is a turnover tax on gross receipts at rates of 1.5% to 5% depending on the business type. There is no VAT in CNMI. BGRT has no input-credit mechanism — businesses pay on full gross receipts regardless of their own costs.
What is the CNMI corporate income tax rate?
CIT mirrors the US federal flat rate of 21% (post-TCJA 2017). The Qualifying Certificate program can grant preferential (reduced) CIT rates and BGRT exemptions to qualifying investment projects on an individually negotiated basis.
Is CNMI a separate tax treaty jurisdiction?
No. CNMI is not a separate treaty signatory. US bilateral DTAs apply as the sovereign framework, but NMTIT is a territorial income tax — not a federal tax — so treaty relief application is complex and fact-specific. Consult a CNMI-qualified practitioner for cross-border income from US treaty partners.
What is CNMI's status compared to Guam and American Samoa?
CNMI is a US Commonwealth under the 1976 Covenant Agreement — a sui generis status distinct from Guam and American Samoa (which are unincorporated territories) and from the Compact of Free Association states (Marshall Islands, Micronesia, Palau), which are independent sovereign nations. CNMI residents are US citizens by birthright.
How are cryptoassets taxed in CNMI?
There is no dedicated CNMI crypto-asset law. Because NMTIT mirrors the US IRC, IRS Notice 2014-21 and subsequent IRS crypto guidance apply as the baseline. Crypto held as a capital asset follows capital-gains treatment; crypto received as compensation is ordinary income. Returns are filed with the CNMI Division of Revenue and Taxation, not the IRS.
Who administers taxes in the Northern Mariana Islands (CNMI)?
The CNMI Division of Revenue and Taxation, under the Department of Finance, administers the territory tax system. The CNMI mirrors the US Internal Revenue Code as its local income tax while adding territory-specific levies, so filings run through the CNMI Division of Revenue and Taxation rather than directly through the IRS.
Major tax firms in Northern Mariana Islands
Verified directory of the largest accounting + tax practices operating in Northern Mariana Islands. Listings are entity-level reference cards — claim flow is open to firm representatives.
- Big 4
Deloitte CNMI
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The figures, dates, and rules on this page are sourced from the documents listed below. Where two sources disagree, both are listed.
- CNMI Division of Revenue and Taxation · accessed
- CNMI Commonwealth Legislature · accessed
- PwC Worldwide Tax Summaries · accessed
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Northern Mariana Islands as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.