Income tax on rent, worked example, in US Virgin Is.
| Non-resident couple's joint monthly rental income1 | US$1,500 | US$6,000 | US$12,000 | |
| Annual Rental Income | US$18,000 | US$72,000 | US$144,000 | |
| Less Costs2 | (20,000) | (40,000) | (60,000) | |
| Less Depreciation | (10,455) | (34,848) | (69,697) | |
| = Taxable Income | US$0 | US$0 | US$14,303 | |
| Income Tax Rates3 | ||||
| Up to US$8,375 | 10% | - | - | - |
| US$8,376 - US$34,000 | 15% | - | - | 2,145 |
| US$34,001- US$68,650 | 25% | - | - | - |
| US$68,651 - US$104,625 | 28% | - | - | - |
| US$104,626 - US$186,825 | 33% | - | - | - |
| Over US$186,826 | 35% | - | - | - |
| Annual Income Tax Due | US$0 | US$0 | US$2,145 | |
| Any Other Taxes | nil | nil | nil | |
| 4% Gross Receipts Tax4 | - | - | US$1,440 | |
| Annual Tax Due | US$0 | US$0 | US$3,585 | |
| Tax due as % of Gross Income | 0% | 0% | 2.49% | |
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DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on September 1, 2010.
1 The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner). The nonresident couple is electing to treat their income as effectively connected income.
2 Estimated values. Allowable deductions are insurance payments, commissions, management fees and expenses associated with rent collection, repairs and maintenance expenses.
3 These income tax rates are for married couples filing separately. Nonresident married couples are not allowed by law to file jointly in the US Virgin Islands.
4 Every individual doing business in the islands are liable to pay the 4% gross receipts tax in addition to the income tax. If annual gross receipts are less than US$225,000, the first US$9,000 monthly income is exempted from gross receipts tax.
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