The Northern Mariana Islands sales tax, as most visitors and new residents think of it, does not exist in the form found on the U.S. mainland. The CNMI has no point-of-sale sales tax. Instead, the Commonwealth taxes businesses on their total gross revenue at rates from 0% to 5%, and it charges an excise tax on goods brought into the islands, with a default rate of 5% of the landed cost and category-specific rates ranging from 1% to 23%. Consumers still feel the cost because importers and retailers build those taxes into shelf prices, but nothing is added at the register.
Business Gross Revenue Tax Rates
The Business Gross Revenue Tax (BGRT) is the CNMI’s main tax on commercial activity and functions as the closest structural counterpart to a state sales tax. Under 4 CMC § 1301, every business pays an annual tax on total gross revenue, meaning all money received before any deduction for expenses, wages, or overhead.1Commonwealth Law Revision Commission. 4 CMC 1301 – Tax on Gross Revenue
One detail matters more than any other: the rate applies to the entire gross revenue, not just the portion inside a bracket. A business earning $60,000 owes 2% on the full $60,000, not a blended marginal rate. The tiers are:
- $0 to $5,000: no tax
- $5,001 to $50,000: 1.5% of total gross revenue
- $50,001 to $100,000: 2% of total gross revenue
- $100,001 to $250,000: 2.5% of total gross revenue
- $250,001 to $500,000: 3% of total gross revenue
- $500,001 to $750,000: 4% of total gross revenue
- $750,001 and above: 5% of total gross revenue
Because each tier applies to the whole amount, crossing a threshold creates a tax cliff. A business earning $50,000 owes $750 (1.5%). Earning one dollar more pushes the rate to 2% on the full $50,001, producing a bill of about $1,000. Anyone operating near a threshold should plan around that math.1Commonwealth Law Revision Commission. 4 CMC 1301 – Tax on Gross Revenue
A person who operates more than one business, or who holds distributive shares in more than one partnership, must combine all gross revenue and pay BGRT on the combined total rather than filing separately for each venture.1Commonwealth Law Revision Commission. 4 CMC 1301 – Tax on Gross Revenue
Excise Tax on Imported Goods
Nearly everything consumed in the CNMI arrives by ship or plane, so the excise tax under 4 CMC § 1402 is the levy that shapes retail prices. It applies when goods enter the Commonwealth for sale, personal use, manufacturing, or rental. The default rate on items not otherwise listed is 5% of the total landed cost, which includes the purchase price plus shipping and insurance.2Northern Mariana Islands Law Revision Commission. 4 CMC 1402 – Excise Tax
Many everyday goods carry lower rates, and luxury goods carry higher ones. Foodstuffs, hygiene products, toiletries, and prescription drugs are taxed at 1%. Agricultural supplies such as fertilizer, seeds, and farming equipment are also 1%. Perfumery is taxed at 23% and cosmetics at 17.25%. Leather goods, jewelry, and precious stones are 5.75%.2Northern Mariana Islands Law Revision Commission. 4 CMC 1402 – Excise Tax
The categories most likely to affect consumers and businesses:
- Foodstuffs: 1%
- Prescription drugs and medicines: 1%
- Hygiene products and toiletries: 1%
- Construction equipment and materials: 3%
- Passenger vehicles valued at $30,000 or less: 5%
- Passenger vehicles valued above $30,000: 5.75%
- Boats and yachts valued above $500,000: 5.75%
- Jewelry, precious metals, and gemstones: 5.75%
- Leather goods: 5.75%
- Cosmetics: 17.25%
- Perfumery and fragrances: 23%
- All other goods: 5%
Goods produced locally within the Commonwealth are taxed at 1% of retail price unless a different rate applies under another section of the code.2Northern Mariana Islands Law Revision Commission. 4 CMC 1402 – Excise Tax
Personal Use Exemption for Imports
Individuals bringing goods into the CNMI for personal use get a $1,000 exemption. Imported goods with a combined value at or below $1,000 are not subject to excise tax, so long as they are for personal consumption rather than resale. When figuring out which items fall within that $1,000 threshold, the goods with the lowest excise rate count first, a rule that maximizes the value of the exemption to the importer.2Northern Mariana Islands Law Revision Commission. 4 CMC 1402 – Excise Tax
Alcohol, Tobacco, and Beverage Rates
Several product categories carry per-unit excise rates rather than percentages. These sit in the same statute as the rest of the excise schedule.2Northern Mariana Islands Law Revision Commission. 4 CMC 1402 – Excise Tax
- Cigarettes: $3.75 per pack of 20
- Other tobacco products: 60% of the invoice price
- Beer and malt beverages: $0.02 per fluid ounce
- Distilled spirits: $0.18 per fluid ounce
- Wine and sake: $0.05 per fluid ounce
- Soft drinks: $0.005 per fluid ounce
- Cannabis products: 15% of value
Hotel and On-Premises Alcohol Taxes
Two industry-specific taxes apply on top of BGRT and import excise. Under 4 CMC § 1502, the Hotel Occupancy Tax charges 15% of the room rate at hotels, motels, resorts, bed and breakfasts, vacation rentals, and similar short-term accommodations. It applies to transient guests and is collected by the property.3Commonwealth of the Northern Mariana Islands Law Revision Commission. 4 CMC 1502 – Hotel Occupancy Tax
Under 4 CMC § 1501, an alcoholic beverage tax of 6% applies at any establishment licensed to serve alcohol for on-premises consumption. This charge is separate from the per-ounce excise on beer, wine, and spirits described above; the per-ounce rates hit at import, while the 6% applies when a bar or restaurant serves the drink.4Commonwealth of the Northern Mariana Islands Legislature. Public Law 10-51 – Amendment to 4 CMC 1501(a)
Excise Tax Exemptions
Several categories of imported goods are fully exempt. The main ones consumers and small businesses encounter:
- Books and educational materials purchased for nonbusiness use by a public or private school or a public library.
- Assistive devices such as wheelchairs, hearing aids, prosthetics, crutches, and prescription lenses brought in for use by individuals with disabilities, provided they are not imported for resale.
- Infant care products including cribs, strollers, and diapers intended for children aged 24 months or younger.
- Renewable energy equipment, including solar panels, wind turbines, and system components.
- Sacramental wine used in religious services.
- Goods brought in solely for demonstration or display and not for sale, if the importer files a written application with the secretary.
- Capital equipment and raw materials used by businesses primarily engaged in manufacturing goods for export.
Businesses inside a Commonwealth Economic Incentive District can also receive excise exemptions on capital equipment and raw materials for up to 20 years, as granted by the Economic Incentive Authority.2Northern Mariana Islands Law Revision Commission. 4 CMC 1402 – Excise Tax
How Businesses File the BGRT
Businesses report BGRT on Form OS-3105, the Monthly Business Gross Revenue Tax Return. The form asks for the taxpayer identification number or employer identification number, along with a computation of gross revenue and tax owed.5Commonwealth of the Northern Mariana Islands Department of Finance. Form OS-3105 – Monthly Business Gross Revenue Tax Return
The filing deadline is the last day of the month following the reporting period. A January return is due by the end of February. That is later than the 15th-of-the-month deadline sometimes assumed.5Commonwealth of the Northern Mariana Islands Department of Finance. Form OS-3105 – Monthly Business Gross Revenue Tax Return
Gross revenue on the form means every dollar the business received, with no deductions for costs, wages, or overhead. Complete transaction records matter, because an audit will compare reported revenue against deposits and other financial evidence. The Division of Revenue and Taxation operates offices on Saipan, Tinian, and Rota, and accepts payment in cash or by check.