American Samoa Salary Paycheck Calculator

American Samoa Taxes: What You Need to Know

Now that you’ve used our American Samoa Paycheck Calculator to estimate your take-home pay, let’s explore the unique tax landscape of this U.S. territory.

Understanding these details will help you make sense of your calculated results and give you a clearer picture of your financial situation.

American Samoa’s tax structure differs significantly from what you might be familiar with on the U.S. mainland. Here’s a quick comparison:

American Samoa operates a separate and independent income tax system modeled on the U.S. Internal Revenue Code as it stood on December 31, 2000. Federal tax law changes after that date do not automatically apply.

How Withholding Works:

• Employers withhold Samoa income tax, not federal income tax, for most employees.
• Wages are reported on Form W-2AS — not the standard federal W-2.
• Employees must use AS-specific withholding forms; the standard federal W-4 is not accepted.

FICA Taxes (Social Security & Medicare):

• Social Security is withheld at 6.2% per employee on wages up to $184,500 in 2026 (maximum: $11,439.00).
• Medicare is withheld at 1.45% with no wage ceiling — applies to all wages.
• An additional 0.9% Medicare tax (employee only) applies once wages exceed $200,000.

American Samoa Specifics:

• Tax Credits: Bona fide residents generally cannot claim U.S. credits like EIC, AOTC, or ACTC on federal returns — these are claimed on the AS return instead.
• Income Exclusion: Bona fide residents can exclude AS-source income from U.S. gross income using Form 4563.
• Tax Office: American Samoa has its own tax office that handles territory-specific rates, brackets, and exemptions.

Are you aware? American Samoa’s personal exemption amount is $2,800. For the most up-to-date withholding tables and income tax brackets, contact the American Samoa Tax Office directly.

Sources:

• IRS Publication 15 (Circular E), Employer’s Tax Guide, For Use in 2026

Minimum Wage in American Samoa: What You Need to Know

American Samoa does not follow the federal minimum wage. Instead, the Fair Labor Standards Act sets industry-specific rates that step up every three years until they reach the federal minimum of $7.25/hr.

Here’s how American Samoa’s rates compare to the mainland:

Current Industry Rates (Effective September 30, 2024):

• Garment manufacturing: $5.78/hr
• Maritime shipping (certain activities): $7.19/hr
• Government employees (federal incremental schedule): $6.01/hr
• Government employees (ASG-established rate): $7.25/hr
• All other private industries: previous rate + $0.40/hr

Key Rules for Employers:

• Rates are determined by the employer’s industry, not the employee’s occupation.
• FLSA overtime applies — hours over 40/week must be paid at 1.5x the regular rate.
• Employers must post the updated FLSA minimum wage poster for American Samoa (updated September 2024) in all establishments.

Are you aware? The American Samoa Government (ASG) has already set its own government employee minimum wage at $7.25/hr — above the federal incremental schedule for government workers.

Sources:

• DOL Wage and Hour Division: Wage Rates in American Samoa
• DOL News Release: Minimum Wages Increase by 40 Cents (Sep 30, 2024)

What the One Big Beautiful Bill Means for Your Paycheck?

P.L. 119-21, signed in 2025, introduces new deductions that directly affect take-home pay for tipped and overtime workers starting in 2026.

Here’s how these changes compare to prior law:

Qualified Tips (Tax Years 2025–2028):

• Applies to employees in occupations that customarily and regularly received tips on or before December 31, 2024.
• Voluntary tips qualify; mandatory service charges do not.
• Tips remain fully subject to Social Security and Medicare taxes if $20 or more per month.
• Employees should submit an updated Form W-4 to have this reflected in withholding throughout the year.

Qualified Overtime (Tax Years 2025–2028):

• The deductible portion is the premium pay above the regular rate required under FLSA (the “half” of time-and-a-half).
• Overtime is still fully subject to FICA — this only reduces federal income tax liability.
• Employees should submit an updated Form W-4 to reflect this deduction.

Other Notable Changes:

• Trump accounts: Employers may contribute up to $2,500/year per employee or dependent child, excluded from gross income under a formal program. Overall account limit: $5,000/year. Available from July 4, 2026.
• Moving expense reimbursement exclusion: Permanently eliminated except for U.S. Armed Forces members on active duty with a permanent change of station.
• Employment tax refunds: IRS now issues refunds by direct deposit only, per EO 14247 (March 25, 2025).

Are you aware? Both the tips and overtime deductions are temporary through 2028 — employees in eligible occupations should update their Form W-4 now to see the benefit in each paycheck rather than waiting for a tax refund.

Sources:

• IRS Publication 15 (Circular E), Employer’s Tax Guide, For Use in 2026

Form W-2AS: What’s Different in American Samoa

Employees in American Samoa receive a Form W-2AS — not the standard W-2 used across the mainland. Understanding the difference is key to filing correctly.

Sources:

2026 Form W-2AS and Employee Instructions

American Samoa Government Tax Office

Bona Fide Residency: The Income Exclusion Explained

Bona fide residents of American Samoa may be able to exclude AS-source income from their U.S. gross income — one of the most significant federal tax benefits available in the territory.

Three Tests for Bona Fide Residency (All Must Be Met):

• Presence test: Generally 183+ days in the territory in the tax year. Alternative paths exist, including a cumulative 549-day test over 3 years.
• Tax home test: Your regular place of business or primary work base must be in American Samoa.
• Closer connection test: You must have a closer connection to American Samoa than to the U.S. or any foreign country — based on location of permanent home, family, and business ties.

Tax Credits — What You Can and Cannot Claim:

• EIC, AOTC, ACTC, ODC: Generally cannot be claimed on a U.S. return — claim on the AS return instead.
• Foreign Tax Credit: Can be claimed on Form 1116 if you are required to report AS income on Form 1040 (cannot claim for taxes on excluded income).

Sources:

• IRS Publication 570 (2025), Tax Guide for Individuals With Income from U.S. Territories
• IRS: Bona Fide Residents of American Samoa – Tax Credits

Wrapping It Up

By combining the insights from our paycheck calculator with this information, you’ll be well-equipped to understand and plan your finances in American Samoa. Whether you’re processing payroll or understanding your own take-home pay, staying informed about these tax distinctions is key to managing earnings effectively.