Australia vs Tonga
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฆ๐บ Australia โ State & Territory Taxes
Australia's 6 states and 2 territories levy payroll tax (4.75%โ6.85%), stamp duty on property, and land tax on investment properties. There is no state income tax โ income tax is federal only. The Stage 3 tax cuts (effective July 2024) restructured brackets significantly. The ACT is progressively replacing stamp duty with broad-based land value tax. Councils levy rates on property owners.
๐น๐ด Tonga โ Tonga Tax System
Tonga levies income tax at a flat 20% on income above the personal allowance. No capital gains tax. Consumption tax at 15% replaced the previous sales tax. The economy is heavily reliant on remittances (over 40% of GDP) from Tongans abroad, mainly in Australia, New Zealand and the US. Agriculture and fishing are the main domestic sectors.
Australia vs Tonga: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฆ๐บ Australia has a higher top income tax rate (0โ45% vs 0โ20%). ๐น๐ด Tonga is more favourable for high earners.
๐ VAT/Sales Tax: Tonga has a higher consumption tax (10% vs 15%).
๐ข Corporate Tax: ๐น๐ด Tonga offers a lower corporate rate (25% vs 30%), which can influence business location decisions.
๐ Capital Gains: ๐น๐ด Tonga taxes investment gains at a lower rate (0% vs 22.5%), benefiting investors.