Solomon Islands taxes its residents on their worldwide income, and its top rate of 40% starts at just SBD 90,080 a year, about US$11,100. That makes it one of the more expensive places in the Pacific for a salary or a pension. But there's no capital gains tax for individuals, so gains on shares, property and crypto held as investments aren't taxed.
This guide covers Solomon Islands personal tax for the 2026 tax year, which is the calendar year (1 January to 31 December 2026). It explains the six-month residence test, the 2026 income tax rates, the National Provident Fund (NPF), freelancing, investments, pensions, the UK tax arrangement and the visa routes.
The key question is simple. Will you be in Solomon Islands for more than six months of the calendar year, or on a job contract of six months or more? If so, you're resident, and income from anywhere in the world is taxed.
What's changed: personal income tax rates haven't changed for 2026. The tax-free amount of SBD 30,080 has applied since January 2020. The bigger change is coming: in the 2026 Budget Speech the Minister of Finance said a VAT Bill was going to Parliament, with VAT expected to start on 1 January 2028, and in August 2026 the Government published a draft Tax Policy Work Programme for 2026 to 2028 that includes VAT and a rewrite of the Income Tax Act, with consultations launched in September. We found no VAT Act passed as at October 2026, so VAT is Proposed, not law.
📋 Solomon Islands tax at a glance for 2026
Topic | Details |
|---|---|
Tax system | Residents are taxed on income from Solomon Islands or elsewhere. Non-residents are taxed on Solomon Islands income only |
Tax year | The calendar year (1 January to 31 December 2026) |
Income tax rates | 0% on the first SBD 30,080, then 11%, 23% and 35%, and 40% above SBD 90,080 |
All-in on a US$100k salary | About 42.5% (SBD 810,000 at about SBD 8.1 to US$1): 37.5% income tax plus 5% NPF |
Capital gains | No capital gains tax for individuals. Profits from trading as a business are taxed as income |
Inheritance and wealth tax | None found in Solomon Islands law |
Residence at a glance | Getting in: easy (more than 6 months in a calendar year, an intention to stay that long, or a job contract of 6 months or more). Leaving: moderate (residence is decided for the whole calendar year; no exit tax) |
Double tax treaties | A 1950 arrangement with the UK, still in force. The Act also keeps 1950s arrangements with Sweden, Denmark and Norway. We found none with the US or Australia |
Worldwide income, but no capital gains tax
Is Solomon Islands a territorial tax country? No, although you may read that it is. Section 3 of the Income Tax Act says the income of a resident person includes income accrued in, derived from or received in Solomon Islands "or elsewhere". The Inland Revenue Division (IRD) puts it plainly: once you're resident, you pay tax on your worldwide income and must report foreign income.
Image 1 — residents are taxed on worldwide income, but not on capital gains
What the Act doesn't have is a general capital gains tax. It charges gains or profits from a business, employment and the use of property, plus dividends, interest, pensions and annuities. The only gain it names specifically is the transfer of rights under a mining lease. So a gain on shares, property or crypto you hold as an investment isn't taxed. If you buy and sell as a business, the profit is business income on the normal scale.
Two things this means in practice:
Foreign investment income is taxed. Foreign dividends, interest and rent go on the same scale as a salary, at up to 40%.
Foreign pensions are taxed. The Act charges "any pension, charge or annuity", and there's no exemption for a pension from abroad.
Where you pay tax abroad on the same income, section 44 gives a credit, limited to the lower of the foreign and Solomon Islands average rates.
👉 IRD: Income Tax Act (Cap. 123), reprint as in force at 5 February 2024 (sections 2, 3, 5 and 44)
👉 IRD: tax information (residence, worldwide income and filing dates)
When you become tax resident in Solomon Islands, and how you stop
Under section 2 of the Income Tax Act, you're resident for a year if you reside in Solomon Islands, apart from temporary absences the Commissioner thinks reasonable. You're treated as residing there if any of these applies:
you're present for periods adding up to more than six months in the calendar year
you satisfy the Commissioner that you intend to be there for more than six months in the year
you're there to carry out a job contract, worked mainly in Solomon Islands, that's set for at least six months
The Commissioner can still treat a contract worker as non-resident, depending on the contract and how they're paid. The test looks at each calendar year as a whole, and the Act has no split-year rule. If you arrive in March on a two-year contract, plan on being resident for all of 2026.
Leaving works the same way. Once you've moved away and spend six months or less in Solomon Islands in a calendar year, you're non-resident for that year. There's no exit tax. If you're not a citizen and you leave with no intention of returning, you can withdraw your NPF savings.
As a non-resident, you're taxed only on Solomon Islands income. Pay for work done in Solomon Islands is Solomon Islands income wherever it's paid, so a remote worker based in Honiara is taxed on their salary even if a foreign employer pays it abroad. If you're there for only part of the year to work, the SBD 30,080 tax-free amount is reduced in proportion to your time there.
Income tax rates for 2026
Residents are taxed on one scale for salaries, business profits, pensions and foreign investment income. The first SBD 30,080 is the personal exemption, and the rates then apply to the rest.
Solomon Islands income tax rates for individuals in 2026
Annual income | Rate |
|---|---|
Up to SBD 30,080 | 0% (personal exemption) |
SBD 30,081 to SBD 45,080 | 11% |
SBD 45,081 to SBD 60,080 | 23% |
SBD 60,081 to SBD 90,080 | 35% |
Over SBD 90,080 | 40% |
Source: Income Tax Act (Cap. 123), section 28 (personal exemption of SBD 30,080) and section 32 with the Fifth Schedule (11% on the first SBD 15,000 of chargeable income, 23% to SBD 30,000, 35% to SBD 60,000 and 40% above). The table adds the exemption to the Fifth Schedule bands.
Payments to non-residents for professional services, interest, royalties and similar items have tax withheld instead, at the rates in the Sixth Schedule (for example 20% on professional services and 15% on interest). The personal exemption doesn't apply to that income.
Worked example
You're single, resident and employed in Honiara for the whole of 2026, earning SBD 810,000 (about US$100k).
The first SBD 30,080 is tax free. The next SBD 15,000 costs SBD 1,650 at 11%, the next SBD 15,000 costs SBD 3,450 at 23%, and the next SBD 30,000 costs SBD 10,500 at 35%.
The remaining SBD 719,920 costs SBD 287,968 at 40%, so your income tax is SBD 303,568.
Your 5% NPF contribution is SBD 40,500. It isn't deductible for income tax.
Your all-in bill is about SBD 344,068, or 42.5% of your salary. Your employer's 7.5% NPF contribution isn't taxed as your income (up to 15% of your pay). If PAYE is deducted correctly, it's a final tax and you don't file a return, unless you have three or more jobs at once and earn over SBD 60,000.
👉 IRD: PAYE for employers (payment by the 15th, IR9 monthly summary, IR2 certificates)
Freelancing in Solomon Islands
If you're self-employed and resident, your profit is taxed on the same scale as a salary, after business expenses. On US$100k of profit (SBD 810,000), that's SBD 303,568, or about 37.5%. There are no compulsory social security contributions for the self-employed, and there's no small business or flat-rate regime for individuals.
Provisional tax: if you run a business, you pay a quarter of last year's tax on 20 March, 20 June, 20 September and 20 December.
Withholding by local clients: clients in Solomon Islands withhold tax from some payments, for example 7.5% on contracting (installation, maintenance and building work). It counts towards your annual bill.
Business licence: you need a taxpayer identification number from IRD before a council will issue a business licence.
The immigration side is harder. The long-term employment visa is for people with a job offer and a work permit from the Commissioner of Labour, and Immigration doesn't list a visa for self-employment or investment.
👉 Solomon Islands Immigration: working resident visa for long-term employment
Crypto, investments and pensions
How is crypto taxed in Solomon Islands? We found no IRD guidance. Because there's no capital gains tax, a gain on crypto you hold as an investment isn't taxed. If you trade often, or buy to sell at a profit as a business, the profit is business income at up to 40%.
Foreign dividends and interest: taxed on the resident scale, up to 40%.
Dividends from Solomon Islands companies: 20% withheld. For a resident individual this is a final tax, unless your dividends, director's fees and interest add up to more than SBD 10,000 in the year. Then they go in your return and the tax withheld counts as a credit.
Local bank interest: 10% withheld, final on the same SBD 10,000 test. Interest on savings or fixed deposits with a Solomon Islands bank is exempt up to SBD 5,000.
Rent: tenants withhold 10% from rent paid to a landlord and pay it to IRD.
Capital gains: not taxed, apart from mining lease rights and business profits.
Pensions are taxable. The Act charges any pension or annuity, and treats a pension from past employment as employment income, so a foreign pension is taxed on the scale. NPF interest and withdrawals are exempt. On US$40k of foreign pension plus US$20k of foreign investment income, the bill is about 35.8%.
We found no inheritance, estate, gift or wealth tax in Solomon Islands law. Stamp duty applies to some documents under the Stamp Duty Act.
👉 IRD: tax legislation (Income Tax, Stamp Duty, Goods Tax and Sales Tax Acts)
Social security: the National Provident Fund
The Solomon Islands National Provident Fund (SINPF) is the country's compulsory retirement savings scheme. Employees pay 5% of gross wages and employers 7.5%, a total of 12.5%. The Act sets no ceiling on the wages it's charged on.
Do foreigners pay NPF? Usually, yes. The SINPF Act covers anyone employed in Solomon Islands under a contract of service, whatever their nationality. The Board can exempt you only if all three of these apply: your employer's principal office is abroad and your contract was made abroad; you're in a foreign social security scheme or a comparable employer scheme; and you're not resident in Solomon Islands. A typical hire from abroad on a local contract doesn't qualify.
Self-employed people don't have to join. The voluntary youSave scheme is open to residents aged 16 to 70 who aren't employees. Employee contributions aren't deductible for income tax.
👉 SINPF: compulsory contributions (5% employee, 7.5% employer)
Double tax treaties
Does Solomon Islands have double tax treaties? Very few. Section 115 of the Income Tax Act keeps in force four arrangements made before independence: with the United Kingdom (1950), Sweden (1954), Denmark (1956) and Norway (1957). HMRC lists the UK arrangement, as amended in 1968 and 1974, as in force. We couldn't confirm whether Sweden, Denmark and Norway still apply theirs. IRD doesn't publish a treaty list, and we found no treaty with Australia, New Zealand or the United States.
Without a treaty, section 44 still gives residents relief for income tax paid abroad on the same income, at the lower of the two countries' average rates.
👉 HMRC: Solomon Islands tax treaties (1950 arrangement, in force)
Long stays without a digital nomad visa
Solomon Islands doesn't have a digital nomad visa, and Immigration lists no retiree or investor visa either. These are the practical routes:
Visitor visa (tourist): 3 months per entry, multiple entries over a year, with a US$50 visa fee plus a US$50 online fee. Work isn't allowed. You can ask for an extension before your permit runs out (US$100).
Working resident visa: for long-term employment with a Solomon Islands employer, valid for 2 years and extendable. It needs a work permit from the Commissioner of Labour and costs US$450.
Permanent resident visa: only after five consecutive years living there on other visas.
Watch the residence test. Two 3-month visits in the same calendar year can add up to more than six months, which would make you resident for the whole year.
👉 Solomon Islands Immigration: visa types
👉 Solomon Islands Immigration: tourist visitor visa
Who is Solomon Islands good for?
How does Solomon Islands compare for different kinds of mover? Ratings are relative to the 150+ countries TaxPilot covers, based on 2026 rules and the all-in cost. We convert at about SBD 8.1 to US$1, close to the Central Bank of Solomon Islands rate of about 8.08 in October 2026.
☑️ Who is Solomon Islands good for? Tax ratings for expats in 2026
Expat profile | Solomon Islands rating | Why |
|---|---|---|
Employees | Poor | About 42.5% on a US$100k salary (SBD 810,000): 37.5% income tax plus the 5% NPF employee contribution. The 40% rate starts at SBD 90,080, so almost all of a professional salary is taxed at the top rate. Foreign hires on a local contract join NPF, and there's no special regime for people moving to Solomon Islands. |
Freelancers (self-employed) | Poor | About 37.5% on US$100k of profit, on the same scale as salaries. NPF is voluntary for the self-employed (the youSave scheme), so there are no compulsory contributions. There's no small business or turnover regime for individuals. |
Retirees | Poor | About 35.8% on a US$40k foreign pension plus US$20k of foreign investment income, because residents are taxed on worldwide income and pensions are taxable. There's no exemption for foreign pensions. We found no inheritance, estate or wealth tax. |
Crypto gains | Good | There's no capital gains tax, so a gain on crypto held as an investment isn't taxed. If you buy and sell as a business, profits are business income at up to 40%. We found no IRD guidance on crypto. |
Investment income | Moderate | About 16.9% on a US$1m foreign portfolio: 4% income (SBD 324,000) taxed on the resident scale, with 4% realised gains untaxed. Dividends from Solomon Islands companies would instead have 20% withheld, which can be a final tax. |
Digital nomad visa | Poor | Solomon Islands has no digital nomad visa, and no retiree or investor visa. A tourist visitor visa allows 3 months per entry over a year, with no work. Long-term visas need a job with a local employer. Moderate is arguable. |
Filing and deadlines
You need a taxpayer identification number, and you can file and pay through IRD's E-Tax portal. The tax year is the calendar year.
Employees with one job: PAYE is a final tax, so most don't file. You do file if you have other untaxed income (foreign income included), if your dividends, director's fees and interest come to more than SBD 10,000, or if your employer under-deducted tax.
Income tax return: by 31 March 2027 for the 2026 year.
Balance of tax: due by 30 September 2027, as shown on your assessment.
Provisional tax for businesses: 20 March, 20 June, 20 September and 20 December during the year.
Employers: PAYE by the 15th of the following month, and IR2 certificates to employees and IRD by 31 January.
👉 IRD: Income Tax Act (Cap. 123), sections 40A, 57 and 83 on final taxes, returns and payment
👉 IRD: draft Formal Tax Policy Work Programme 2026 to 2028 (VAT and Income Tax Act rewrite)
👉 Solomon Islands Government: Tax Policy Work Programme and VAT consultations (September 2026)
👉 Ministry of Finance and Treasury: 2026 Budget Speech (VAT from 1 January 2028)
Frequently asked questions
Does Solomon Islands tax foreign income?
Yes, for residents. The Income Tax Act taxes a resident's income from Solomon Islands or elsewhere, so foreign pensions, dividends, interest and rent are taxed at up to 40%. Non-residents are taxed only on Solomon Islands income.
When do I become tax resident in Solomon Islands?
You're resident for a calendar year if you live there, are present for more than six months in total, intend to stay more than six months, or are there on a job contract of at least six months. There's no split-year rule.
What are the income tax rates in Solomon Islands in 2026?
The first SBD 30,080 is tax free. Then 11% applies up to SBD 45,080, 23% up to SBD 60,080, 35% up to SBD 90,080 and 40% above that.
Does Solomon Islands have capital gains tax?
No. There's no general capital gains tax for individuals, so gains on shares, property or crypto held as investments aren't taxed. Profits from trading as a business are taxed as income, and gains on mining lease rights are taxed.
Do foreign workers pay NPF in Solomon Islands?
Usually. Anyone employed in Solomon Islands under a contract of service pays 5% of wages, and the employer 7.5%. The Board can exempt only non-residents employed by a foreign employer on a contract made abroad who are in a foreign scheme.
Does Solomon Islands have a tax treaty with the UK?
Yes. A 1950 arrangement, amended in 1968 and 1974, is still in force according to HMRC. The Income Tax Act also keeps old arrangements with Sweden, Denmark and Norway. We found no treaty with Australia or the US.
Where to go next
Important information
This article is general information and does not constitute tax, legal, immigration or financial advice, and does not create a client relationship. Tax outcomes depend on travel history, income sources, treaty status and the law applying to the relevant year. Rates, thresholds and regimes change, and some measures described may be proposed rather than enacted; this article reflects our understanding as at the date of publication. Obtain advice from a suitably qualified professional before acting or refraining from action.
