diff --git a/wp-includes/rest-api/endpoints/class-wp-rest-taxonomies-controller.php b/wp-includes/rest-api/endpoints/class-wp-rest-taxonomies-controller.php
index 9720a20945..0af4ec4e97 100644
--- a/wp-includes/rest-api/endpoints/class-wp-rest-taxonomies-controller.php
+++ b/wp-includes/rest-api/endpoints/class-wp-rest-taxonomies-controller.php
@@ -80,7 +80,7 @@ class WP_REST_Taxonomies_Controller extends WP_REST_Controller {
 				$taxonomies = get_taxonomies( '', 'objects' );
 			}
 			foreach ( $taxonomies as $taxonomy ) {
-				if ( ! empty( $taxonomy->show_in_rest ) && current_user_can( $taxonomy->cap->manage_terms ) ) {
+				if ( ! empty( $taxonomy->show_in_rest ) && current_user_can( $taxonomy->cap->assign_terms ) ) {
 					return true;
 				}
 			}
@@ -109,7 +109,7 @@ class WP_REST_Taxonomies_Controller extends WP_REST_Controller {
 		}
 		$data = array();
 		foreach ( $taxonomies as $tax_type => $value ) {
-			if ( empty( $value->show_in_rest ) || ( 'edit' === $request['context'] && ! current_user_can( $value->cap->manage_terms ) ) ) {
+			if ( empty( $value->show_in_rest ) || ( 'edit' === $request['context'] && ! current_user_can( $value->cap->assign_terms ) ) ) {
 				continue;
 			}
 			$tax = $this->prepare_item_for_response( $value, $request );
@@ -141,7 +141,7 @@ class WP_REST_Taxonomies_Controller extends WP_REST_Controller {
 			if ( empty( $tax_obj->show_in_rest ) ) {
 				return false;
 			}
-			if ( 'edit' === $request['context'] && ! current_user_can( $tax_obj->cap->manage_terms ) ) {
+			if ( 'edit' === $request['context'] && ! current_user_can( $tax_obj->cap->assign_terms ) ) {
 				return new WP_Error( 'rest_forbidden_context', __( 'Sorry, you are not allowed to manage terms in this taxonomy.' ), array( 'status' => rest_authorization_required_code() ) );
 			}
 		}
diff --git a/wp-includes/rest-api/endpoints/class-wp-rest-terms-controller.php b/wp-includes/rest-api/endpoints/class-wp-rest-terms-controller.php
index 477df8ba48..3342742b93 100644
--- a/wp-includes/rest-api/endpoints/class-wp-rest-terms-controller.php
+++ b/wp-includes/rest-api/endpoints/class-wp-rest-terms-controller.php
@@ -376,7 +376,10 @@ class WP_REST_Terms_Controller extends WP_REST_Controller {
 		}
 
 		$taxonomy_obj = get_taxonomy( $this->taxonomy );
-		if ( ! current_user_can( $taxonomy_obj->cap->edit_terms ) ) {
+		if ( ( is_taxonomy_hierarchical( $this->taxonomy )
+				&& ! current_user_can( $taxonomy_obj->cap->edit_terms ) )
+			|| ( ! is_taxonomy_hierarchical( $this->taxonomy )
+				&& ! current_user_can( $taxonomy_obj->cap->assign_terms ) ) ) {
 			return new WP_Error( 'rest_cannot_create', __( 'Sorry, you are not allowed to create new terms.' ), array( 'status' => rest_authorization_required_code() ) );
 		}
 
diff --git a/wp-includes/version.php b/wp-includes/version.php
index ad72c1e2a9..d259ef2283 100644
--- a/wp-includes/version.php
+++ b/wp-includes/version.php
@@ -4,7 +4,7 @@
  *
  * @global string $wp_version
  */
-$wp_version = '4.9.8-alpha-43442';
+$wp_version = '4.9.8-alpha-43443';
 
 /**
  * Holds the WordPress DB revision, increments when changes are made to the WordPress DB schema.