How Many US Territories Are There and What Makes Them Different

How Many US Territories Are There and What Makes Them Different

When planning travel within the United States, most of us think in terms of the 50 states. We picture road trips across state lines or flights from coast to coast. But the United States is more than just the mainland, Alaska, and Hawaii. It also includes a collection of diverse territories scattered across the Caribbean and the Pacific.

For travelers, digital nomads, and remote workers, these territories offer a fascinating blend of the familiar and the foreign. You might find the same currency and postal service you are used to, yet experience entirely different cultures, languages, and climates.

However, the legal status of these areas can be confusing. Are they fully part of the US? Do you need a passport? How does residency work for tax purposes? Whether you are looking for a tropical escape without a visa or exploring potential tax residency options, understanding the unique status of US territories is essential.

Here is a guide to the US territories and what sets them apart.

The "Big Five": Where People Actually Live

While the US holds claim to over a dozen territories, only five are permanently inhabited. These are classified as "unincorporated territories," meaning they are under US sovereignty but not fully part of the United States proper in the way a state is.

These five territories fall into two geographic clusters:

The Caribbean Connection * Puerto Rico: The largest and most populous territory. Known for its vibrant culture, Spanish heritage, and bioluminescent bays, Puerto Rico is a commonwealth. It feels distinct from the mainland US, with Spanish being the dominant language, yet it is deeply integrated into the American legal system. * US Virgin Islands (USVI): Consisting of St. Croix, St. John, and St. Thomas, the USVI is a major tourism hub. It is unique because it is the only place in the US where traffic drives on the left side of the road, a holdover from its history as a Danish colony.

The Pacific Outposts * Guam: Located in Micronesia, Guam is a strategic military hub and a popular tourist destination, particularly for travelers from Asia. Its indigenous Chamorro culture remains strong despite centuries of Spanish and American influence. * Northern Mariana Islands (CNMI): Just north of Guam, this chain includes Saipan, Tinian, and Rota. Like Puerto Rico, it is a commonwealth, offering a mix of history, diving, and island life. * American Samoa: Located in the South Pacific, this is the only US territory south of the equator. It is deeply traditional, governed largely by Fa'a Samoa (the Samoan Way), and holds a unique legal status compared to the others.

Citizenship and Rights: The Fine Print

One of the biggest points of confusion regarding territories is citizenship.

If you are born in Puerto Rico, Guam, the US Virgin Islands, or the Northern Mariana Islands, you are a US citizen by birth. You hold a standard US passport and can move freely to the 50 states to live and work without any special visas.

The Exception: American Samoa American Samoa is the outlier. People born here are classified as "US Nationals" rather than US citizens. They can enter, live, and work in the United States freely, but they cannot vote in federal elections even if they reside in a US state, unless they go through the naturalization process to become full citizens.

Voting Rights This is a major differentiator for all territories. While residents are subject to US federal laws, they do not have voting representation in Congress (they send non-voting delegates) and they cannot vote for the President of the United States while living in the territory. However, if a US citizen moves from a territory to one of the 50 states, they gain full voting rights. Conversely, if a New Yorker moves to Puerto Rico, they lose their ability to vote in presidential elections.

Travel Logistics: Passports and Borders

For US citizens, one of the biggest appeals of the territories is the ease of access.

Do you need a passport? Generally, no. If you are a US citizen or Lawful Permanent Resident (Green Card holder), you do not need a passport to travel between the US mainland and Puerto Rico or the US Virgin Islands. A government-issued photo ID, such as a Real ID-compliant driver's license, is sufficient.

Travel to Guam and the Pacific territories usually does not require a passport if you fly directly from Hawaii, but it is highly recommended to carry one. Flights often divert through foreign countries, and having a passport prevents significant headaches.

The Customs Anomaly Even though you are on US soil, the US Virgin Islands retains a unique customs status. When returning to the mainland from the USVI, you must clear US Customs and Border Protection. It is a "customs border" but not an immigration border for citizens.

For international travelers and digital nomads, standard US visa rules usually apply. If you require a visa to visit New York, you generally require one to visit Guam or Puerto Rico.

Tracking Your Time If you are hopping between territories or mixing territory travel with international trips, it is vital to keep a log of your location. Time spent in territories can count differently depending on whether you are tracking for visa limits or tax residency. Tools like the Days Monitor app are excellent for discreetly logging your location history to ensure you don't inadvertently overstay a welcome or trigger a compliance issue.

Tax Implications: A Different Set of Rules

For the remote worker or investor, the tax landscape in US territories is perhaps the most significant differentiator. The US is one of the few countries that taxes based on citizenship, not just residency. However, the territories offer a carve-out.

Residents of US territories generally pay taxes to the local territorial government rather than the federal IRS, provided they meet strict "bona fide residency" requirements.

For example, Puerto Rico has Acts (formerly Act 20/22, now Act 60) that offer significant tax incentives for businesses and investors who move their primary home to the island. Similarly, the USVI has economic development programs.

The Catch You cannot simply rent a mailbox in San Juan and claim tax benefits. The IRS looks closely at your physical presence. You typically need to spend at least 183 days per year in the territory to qualify as a bona fide resident.

This is where accurate tracking becomes non-negotiable. Failing to prove you were physically present in the territory for the required time can lead to a hefty bill from the IRS. If you are navigating these rules, using our Substantial Presence Test Calculator can help you visualize your status and ensure you remain compliant with US federal presence tests.

The Minor Outlying Islands

Beyond the five inhabited territories, there are nine "Minor Outlying Islands." These include places like Midway Atoll, Wake Island, and Johnston Atoll.

These are not tourist destinations. They are mostly uninhabited wildlife refuges or military installations. Access is heavily restricted and usually requires special permits from the US Fish and Wildlife Service or the military. Unless you are a researcher or stationed there for defense purposes, you likely won't be adding these to your travel itinerary.

Conclusion

The US territories offer a fascinating middle ground for travelers and mobile professionals. They provide the safety and infrastructure of the United States combined with the adventure of international travel. From the rainforests of Puerto Rico to the pristine beaches of Guam, these destinations are distinct, culturally rich, and legally unique.

Whether you are looking to relocate for tax advantages or simply want a Caribbean vacation without the hassle of a passport, understanding the difference between a state and a territory ensures you travel smarter.

Just remember that even in paradise, the clock is ticking on residency requirements and visa allowances. If you are managing complex travel across these unique jurisdictions, let Days Monitor handle the counting for you. Staying on top of your days allows you to relax and enjoy the island breeze with total peace of mind.