Country tax profile · 2026
Palau income tax
How Palau taxes income
Palau taxes personal income at rates up to 12%. Only salaries earned in Palau are taxed; foreign and investment income is not.
Compiled by MyNomadWorld for Palau and currently being re-verified against primary sources. Confirm with a local adviser before relying on it.
Palau income tax brackets (2026)
| Taxable income | Rate |
|---|---|
| up to 8,000 USD | 6% |
| up to 40,000 USD | 10% |
| over the top bracket | 12% |
National brackets; local or regional surcharges may apply on top.
How Palau's income tax compares
Palau's top income tax of 12% is the 162nd highest of the 197 countries we track, against a global average of 27.9% and a Oceania average of 24.4%.
Countries with a similar income tax
Macau (12%) · Tajikistan (12%) · Moldova (12%) · Uzbekistan (12%) · Belarus (13%) · Bolivia (13%)
Who is a tax resident of Palau?
Wages and Salary Tax applies to wages earned in Palau regardless of residence, on a territorial basis. Foreign source and investment income is not taxed.
Related Palau taxes
Moving to Palau?
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What is the income tax rate in Palau?
Palau taxes personal income at rates up to 12%. Only salaries earned in Palau are taxed; foreign and investment income is not.