Northern Mariana Islands Territorial Income Tax Information

State Abbreviation:

CQ

State Tax Withholding State Code:

CQ

Acceptable Exemption Form:

W-4

Basis For Withholding:

Federal Exemptions

Acceptable Exemption Data:

S, M / Number of Exemptions

TSP Deferred:

Yes

Special Coding:

None

Additional Information:

IR105, State Tax:
Chapter 2, Wage & Salary Tax Formula, State Code CQ (State Tax 1) Chapter 7, Income Tax Formula, State Code 88 (State Tax 2)

Additional Resources:

Northern Mariana Islands Income Tax Withholding

Withholding Formula (Effective Pay Period 25, 2007)

  1. Determine the annual Chapter 7 tax by using the Federal income tax formula. Refer to the Federal Income Tax Withholding Formula section under tax formulas on the NFC's Home Page (www.nfc.usda.gov).
  2. Determine the Chapter 2 tax by multiplying the gross biweekly wages by 26 to obtain the gross annual wages.
  3. Apply the gross annual wages from step 2 to the table below to determine the annual Chapter 2 tax withholding:

    Estimated Annual Salary:
    Over: But Not Over: The Percentage Amount Is:
    $0 $1,000 0.0%
    1,000 5,000 2.0%
    5,000 7,000 3.0%
    7,000 15,000 4.0%
    15,000 22,000 5.0%
    22,000 30,000 6.0%
    30,000 40,000 7.0%
    40,000 50,000 8.0%
    50,000 and over 9.0%
  4. Divide the annual Chapter 2 income tax withholding by 26 to obtain the biweekly income tax withholding.
  5. Subtract the Chapter 2 tax withholding amount (completed in step 4) from the Chapter 7 tax withholding amount (completed in step 1) to obtain the withholding amount. If the result is less than or equal to zero, the new Chapter 7 tax amount will be zero.
  6. To determine the final tax amount, the employee must add the new Chapter 7 tax withholding amount (calculated in step 5) to the Chapter 2 tax withholding amount (calculated in step 4).