Marshall Islands Tipping & Tax Guide for Travellers

Sales Tax Rate in Majuro: 4% of the price of many goods and services

A local sales tax applies to many everyday purchases in Majuro, from food and drinks to retail goods and selected services. Depending on the business, the tax may be included in the displayed price or added separately at the till.

Most travellers will barely notice it, although it is always worth asking whether tax is included when arranging a larger purchase, tour or service.

Goods and Services Exempt from Sales Tax

Under the Local Government Tax and Fees Act 1989, locally produced goods are not subject to general sales tax. The Act also allows local governments to impose selective sales taxes on alcohol and tobacco, as well as taxes on specified professional services.

Because these taxes are introduced by local governments, the way they are applied can vary between atolls. The 4% rate commonly encountered in Majuro should not automatically be assumed elsewhere.

Get a better idea of everyday costs with our guide, Marshall Islands Travel Budget: How Much Does a Trip to the Marshall Islands Cost?

Hotel Room Tax: 8%

An 8% hotel room tax applies to accommodation in the Marshall Islands. It is usually included in the room rate provided by the hotel, although it may be itemised separately on your booking confirmation or final invoice.

When comparing accommodation prices, check whether taxes are included before deciding that one room is dramatically cheaper than another. The difference may simply be hiding in the small print, where holiday bargains occasionally go to play tricks on us.

For accommodation ideas, see Where to Stay in the Marshall Islands: The Best Accommodations.

Departure Tax: US$25 per passenger

The Marshall Islands Departure Tax is a flat fee of US$25 for international passengers leaving the country. Unlike some destinations where the charge is included in your airfare, this fee is paid separately at the airport before departure.

At Amata Kabua International Airport, check in for your flight first, then take your passport to the departure-tax desk. Once the fee has been paid, staff will complete the remaining departure formalities and issue your boarding pass.

Keep US$25 in cash aside for the airport so it does not accidentally become your final café order.

For more advice on check-in, security screening and airport formalities, see Leaving the Marshall Islands: Departure Tips and Checklist.

Yacht Departure Fee: US$10 per vessel

Yachts clearing out through Majuro or Ebeye must pay a US$10 departure fee in cash to the RMI Ports Authority. Give the authorities at least 24 hours’ notice, as failing to do so may result in a US$150 non-compliance fee, while out-of-hours clearance can also attract extra charges.

The full process involves the Ports Authority, Customs and Immigration, so there is a little more to it than handing over a 10-dollar note and sailing into the sunset.

See our Sailing Guide to the Marshall Islands: Tips for Yachting in the Marshall Islands for the paperwork, office sequence and departure deadlines.

Although tipping is not expected, there are a few situations where you might choose to give something extra.

Tipping at Restaurants and Cafés

There is no need to add a standard percentage to restaurant or café bills. Check the receipt for tax or any service charge, then leave a small voluntary tip only when you feel the service deserves it.

Cash is the simplest option, particularly at smaller cafés where card payments may not be available.

Need a place to eat? Check out the 15 Best Restaurants in Majuro & the Marshall Islands.

Tipping at Hotels

Hotel staff do not generally expect tips for housekeeping, carrying bags or arranging transport. Nevertheless, a small cash tip is a friendly way to recognise someone who has gone well beyond the usual service.

Tipping Taxi Drivers

Taxi fares do not normally require a tip. Agree on the fare before travelling, then pay the amount quoted.

You may round up the fare when a driver has waited for you, helped with several bags or provided particularly useful local advice, but this remains entirely optional.

See Taxis in the Marshall Islands: Fares, Tips and How to Use Them for more practical advice.

Tipping Guides and Boat Crews

Tour guides, fishing guides and boat crews do not automatically expect gratuities. However, a voluntary tip can be a thoughtful gesture after an especially enjoyable private trip or when the crew has provided additional help.

Hand the tip directly to the guide or crew member in cash. There is no fixed percentage, so choose an amount that reflects the service and your budget.

For some awesome boat trips, check out the 10 Best Boat Tours in Majuro & the Marshall Islands.