How much is Guamʼs rental tax?

Guam, a U.S. territory located in the western Pacific Ocean, imposes a rental tax on landlords who earn income from renting out their properties. The rental tax on Guam is an important source of revenue for the local government and helps fund various public services and infrastructure projects on the island.

How much is Guamʼs rental tax?

**Guam’s rental tax is 4% of the gross rental income generated from the property.** Landlords are required to report and pay this tax to the Department of Revenue and Taxation (DRT) on a quarterly basis.

FAQs about Guamʼs rental tax:

1. Are there any exemptions to Guam’s rental tax?

There are certain exemptions to Guam’s rental tax, such as properties rented by educational institutions or religious organizations for their official purposes.

2. How is the rental tax calculated on Guam?

The rental tax on Guam is calculated as 4% of the gross rental income earned by the landlord from a property. This tax applies to both residential and commercial rental properties.

3. When is the rental tax due on Guam?

Landlords on Guam are required to report and pay the rental tax on a quarterly basis. The due dates for filing and paying the tax are April 30th, July 31st, October 31st, and January 31st of the following year.

4. Can landlords deduct expenses from their rental income before calculating the rental tax on Guam?

Landlords on Guam can deduct certain expenses related to the rental property, such as maintenance costs, property taxes, and mortgage interest, before calculating the rental tax. This helps reduce the taxable income and overall tax liability.

5. What happens if a landlord fails to pay the rental tax on Guam?

If a landlord fails to report and pay the rental tax on Guam, they may be subject to penalties and interest charges imposed by the DRT. It is important for landlords to comply with the tax laws on Guam to avoid any legal consequences.

6. Can landlords on Guam claim a tax credit for rental taxes paid to other jurisdictions?

Landlords on Guam may be able to claim a tax credit for rental taxes paid to other jurisdictions, such as states in the U.S. mainland or foreign countries. This helps prevent double taxation on rental income earned from properties located outside Guam.

7. Are short-term rental properties subject to the same rental tax rate on Guam?

Short-term rental properties, such as vacation rentals and Airbnb listings, are subject to the same 4% rental tax rate on Guam. Landlords must report and pay the tax on a quarterly basis, regardless of the duration of the rental.

8. Is rental income earned by non-resident landlords taxable on Guam?

Rental income earned by non-resident landlords on Guam is subject to the same rental tax rate of 4%. Non-resident landlords must also comply with the tax laws and reporting requirements applicable to rental income earned on the island.

9. Can landlords on Guam set up a payment plan for rental taxes owed?

Landlords on Guam may be able to set up a payment plan with the DRT for rental taxes owed if they are unable to pay the full amount at once. It is recommended to contact the DRT directly to discuss payment options and avoid additional penalties.

10. Are there any tax incentives or deductions available for landlords on Guam?

Guam offers certain tax incentives and deductions for landlords, such as depreciation deductions for the wear and tear of rental properties over time. Landlords should consult with a tax professional to maximize their tax savings.

11. Can landlords on Guam pass on the rental tax to tenants?

Landlords on Guam are not allowed to pass on the rental tax to tenants as an additional charge or fee. The rental tax is the responsibility of the landlord and should be included in the overall cost of renting the property.

12. How does Guamʼs rental tax compare to other U.S. territories?

Guam’s rental tax rate of 4% is relatively moderate compared to other U.S. territories, such as Puerto Rico and the U.S. Virgin Islands. Landlords on Guam benefit from a lower tax rate, making it an attractive location for real estate investments.

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