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Dominican Republic vs Bahamas
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇩🇴 Dominican Republic
vs
🇧🇸 Bahamas
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–25%
25% top; strong economic fundamentals
No change
0%
No income tax maintained
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
18%
ITBIS 18% maintained
No change
10%
10% VAT maintained
No change

Corporate Tax Rate

Corporate Tax Rate
27%
27%; Pillar Two considerations for MNCs in FTZs
No change
0%
No CIT; Pillar Two compliance via domestic top-up
No change

Capital Gains Tax

Capital Gains Tax
27%
27% as income
No change
0%
No CGT
No change

Social Security & Payroll

Social Security / Payroll
~23.55%
TSS reform for pension adequacy
No change
~9.8%
NIB; hurricane recovery spending affecting fiscal position
No change
State, Regional & Local Taxes

🇩🇴 Dominican RepublicMunicipal Taxes

The Dominican Republic's 32 provinces and 158 municipalities levy the impuesto a la propiedad inmobiliaria (IPI) on properties above DOP 9.5M at 1%, commercial licences, and local service fees. The DGII (Dirección General de Impuestos Internos) administers national taxes. The DR has been one of the fastest-growing economies in Latin America, with tourism, manufacturing (free trade zones), and remittances as key pillars. Tax reform has been ongoing to improve collection and reduce evasion.

🇧🇸 BahamasLocal Government Rates & Fees

The Bahamas' islands have local government bodies collecting fees for services, building permits, and business licences. The Bahamas famously has no income tax, no capital gains tax, no corporate income tax, and no withholding tax — making it one of the world's purest zero-tax jurisdictions. Revenue comes through VAT (introduced 2015), real property tax, customs duties, and stamp duty. As a major offshore financial centre and tourism destination, the Bahamas has faced OECD/FATF pressure on transparency and has made significant reforms.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Dominican Republic vs Bahamas: Key Tax Differences (2026)

💰 Income Tax: 🇩🇴 Dominican Republic has a higher top income tax rate (0–25% vs 0%). 🇧🇸 Bahamas is more favourable for high earners.

🛒 VAT/Sales Tax: Dominican Republic has a higher consumption tax (18% vs 10%).

🏢 Corporate Tax: 🇧🇸 Bahamas offers a lower corporate rate (0% vs 27%), which can influence business location decisions.

📈 Capital Gains: 🇧🇸 Bahamas taxes investment gains at a lower rate (0% vs 27%), benefiting investors.

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All 🇩🇴 Dominican Republic comparisons →All 🇧🇸 Bahamas comparisons →