U.S. Territory

U.S. Virgin Islands

D+40 · Low tax burden · COL index 128

A+

37%

Income Tax

Notable

Uses a mirror tax code. No federal income tax on VI-source income for bona fide residents. Economic Development Commission (EDC) benefits can reduce income tax to 1% and offer 90% reduction on corporate taxes for qualifying businesses.

U.S. Virgin Islands in plain English

Worth knowing before you move to U.S. Virgin Islands

The U.S. Virgin Islands use the federal tax code with payment to the territory, and the Economic Development Commission program offers up to a 90% reduction in income tax for qualifying businesses and their owners who relocate. Hurricane exposure is severe, with Irma and Maria both hitting in 2017. Electricity and groceries cost well above mainland levels.

What U.S. Virgin Islands taxes, and what it doesn't

U.S. Virgin Islands levies a graduated income tax that tops out at 37%. A household earning $75,000 pays an effective 0.0%, about $0 a year; at $150,000 the effective rate is 0.0%. Among the 41 states that tax income, U.S. Virgin Islands has the lowest effective rate at $100,000 of income.

Property tax runs 0.30% of home value a year. The national effective rate is about 1.10%, and U.S. Virgin Islands has the 2nd lowest rate of the 50 states.

Written from the figures on this page. Rankings compare the 50 states. Sources and years are listed with each figure below.

Ranked lists

State Profile

59/100

U.S. Virgin Islands will change its laws. We'll email you when it does.

One email when U.S. Virgin Islands changes a tax, gun, cannabis or abortion law. Unsubscribe in one click.

Taxes

Sources: state revenue departments · Tax Foundation 2026 · income-tax brackets 2026

▾

Income Tax

Mirror code: residents pay income tax to USVI government. EDC benefits can reduce effective rate to near 1% for qualifying applicants.

37% top

Property Tax

0.3% / yr

Sales Tax

None

Social Security

Exempt

Pension / IRA

Partial

Estate Tax

None

Inheritance Tax

None

Capital Gains

Federal capital gains rates via mirror code; potential reduction under EDC program

Not taxed

Housing & Cost of Living

Sources: Zillow · Census ACS · iii.org and state insurers 2026 · WRLURI 2018 · Census 2024 (HOA)

▾

Cost of Living Index

National avg = 100

128

Politics & Gun Laws

Sources: OpenElections 2024 · Giffords 2025 · state statutes

▾

2024 Presidential Vote

D+40

Gun Laws

Gun ControlA-

2A LibertyD

Carry Permit

May-issue

Purchase Permit Required

Yes

Jobs & Economy

Sources: BLS QCEW 2024 · BLS JOLTS 2024 · BLS union membership 2025 · Census ACS

▾

Job Market

-0.3% job growth · 9% unemployment

Weak

Top Industries

TourismGovernmentRetail

Tech Jobs

#50 of 50

Healthcare Jobs

#50 of 50

Remote Work

8% of workers

Median Household Income

$37,000

Daily Life

Sources: American Pyrotechnics Association · state statutes 2026 · IIHS

▾

Consumer Fireworks

Check local ordinances

Restricted

Weather & Natural Risks

Sources: NOAA · NWS Storm Prediction Center · FEMA NRI

▾

Winter Severity

Avg January high: 78°F

Very Mild

Summer Heat

Moderate summers

84°F avg July

Annual Rainfall

46" / yr

Tornado Risk

Very Low

Hurricane Risk

Moderate

Wildfire Risk

Very Low

Flood Risk

Low

Natural Hazards

Sources: USGS · CDC · USDA APHIS · NOAA · FEMA NRI 2023

▾

26LOW danger

Peak hurricane seasonJellyfish in the beautiful water

Venomous Snakes

Low

Spider Hazard

Low

Scorpions

Low

Hurricane Risk

High

Tornado Risk

Minimal

Wildfire Risk

Minimal

Earthquake Risk

Low

Danger score is a composite index. Methodology ↗

Veteran Benefits

Sources: VA.gov · Military.com state guide · Tax Foundation

▾

Veteran-Friendly Score

6.5% of state population are veterans

20/100

Property Tax Exemption

Partial exemption for service-connected disability

Disability Only

Military Retirement Pay

Taxed

Active Duty Pay

Taxed

VA Facilities Access

Adequate

Notable Benefits

Standard federal VA benefits

See your full cost of living in U.S. Virgin Islands

Housing, taxes, childcare, insurance — all estimated.

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Compare Similar States

VI vs NJ

U.S. Virgin Islands vs New Jersey

COL 128 vs 121 · 37% vs 10.75% income tax

Full comparison →

VI vs NY

U.S. Virgin Islands vs New York

COL 128 vs 139 · 37% vs 10.9% income tax

Full comparison →

VI vs WA

U.S. Virgin Islands vs Washington

COL 128 vs 117 · 37% vs No income tax

Full comparison →

VI vs MD

U.S. Virgin Islands vs Maryland

COL 128 vs 116 · 37% vs 5.75% income tax

Full comparison →

Trending in U.S. Virgin Islands

Disappointing revenues puts US Virgin Islands in bind - Bond Buyer

Bond Buyer · Aug 24

CONGRESSWOMAN PLASKETT'S STATEMENT ON VIRGIN ISLANDS HOUSING FINANCE AUTHORITY FUNDING SUSPENSION BY THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT - Congresswoman Stacey Plaskett (.gov)

Congresswoman Stacey Plaskett (.gov) · Jul 20

US Virgin Islands Democrats choose Plaskett and Potter to lead November ticket - Pasquines

Pasquines · Sep 3

Governor Bryan Orders Virgin Islands Flags Lowered to Half-Staff in Honor of Eustace Charles - vi.gov

vi.gov · Aug 23

HUD suspends housing funds to Virgin Islands over corruption claims - Multifamily Dive

Multifamily Dive · Jul 21

What Residents Say

Would you consider moving to the U.S. Virgin Islands ...

Residents don't pay federal income tax- the tax goes to the USVI, so libertarian policies could really make an inpact....

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USVI : r/USPS

Is the cost of living manageable?...

reddit.com ↗

What's stopping you from giving up everything and moving ...

Yeah, I'm thinking Costa Rica or Puerto Rico if I want sunshine and low cost of living. ... I'd rather go to the US Virgin Islands. Just as poor, ......

reddit.com ↗

If you were single P&T where would you live?

I was awarded 100% P&T last year. I have equity in the house, which we would split and take our own debt, etc. I plan on selling my car to lower ......

reddit.com ↗

If the US were to raise taxes on billionaires to like 50 ...

Edit: Not every country which does not have high taxes is horrible. Take Singapore for example, or the Bahamas or Switzerland....

reddit.com ↗

Why don't we just get rid of income tax and have a ...

So I’m obviously not a fan of taxes, but I know they’re somewhat necessary, but why not just tax everything we buy at a slightly higher percentage ......

reddit.com ↗

Am I missing something? : r/AmerExit

Hello,. 39(F) US citizen, born and raised here. I lived in Cambridge England in 2005-2006 and have dreamed of living outside of the US ever ......

reddit.com ↗

Seriously considering becoming a non-resident of Canada ...

I'm in the top income bracket for federal and provincial taxes for 2016, and am seriously considering moving out of Canada....

reddit.com ↗

Made a website for finding places to move based on ...

Considering those factors: taxes, crime rate, walkability, cost of living, and poverty percentage, could you list them in order of their ......

reddit.com ↗

CMV: Every US Territory (Washington DC, Puerto Rico, etc. ...

Something to note: DC pays the most in taxes because it is only a city with no supporting rural areas. It's entirely high-cost-of-living ......

reddit.com ↗

U.S. Virgin Islands will change its laws. We'll email you when it does.

One email when U.S. Virgin Islands changes a tax, gun, cannabis or abortion law. Unsubscribe in one click.

Data is informational only. Verify with a tax professional, real estate agent, and local sources before making relocation decisions. Crime data: FBI Crime Data Explorer 2023. Healthcare: Commonwealth Fund 2023; life expectancy from County Health Rankings 2024. Education: Education Week 2023. Housing: Zillow monthly index and Census ACS 2022. Insurance: rate surveys 2024. Sponsored links marked “Sponsored” may earn a commission. This does not affect our data or rankings.