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Dominican Republic vs United States
Tax Rate Comparison

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

🇩🇴 Dominican Republic
vs
🇺🇸 United States
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
10–37%
TCJA provisions extended; no sunset
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
18%
ITBIS 18% maintained
No change
0–11%
No federal sales tax; state avg ~6–9%
No change

Corporate Tax Rate

Corporate Tax Rate
27%
27%; Pillar Two considerations for MNCs in FTZs
No change
21%
Federal flat; proposals to raise to 28% stalled
No change

Capital Gains Tax

Capital Gains Tax
27%
27% as income
No change
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change

Social Security & Payroll

Social Security / Payroll
~23.55%
TSS reform for pension adequacy
No change
~15.3%
SS wage base ~$180,000 est. 2026
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.

🇺🇸 United StatesState & Local Taxes

The U.S. has 50 states each setting their own income tax (0%–13.3%). California tops at 13.3%, while Texas, Florida, and Nevada levy no state income tax. NYC adds its own income tax (up to 3.876%). Sales taxes vary from 0% (Oregon) to over 11% combined. Property taxes are primarily local. Some states like Washington have introduced capital gains levies.

⚠️ 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 United States: Key Tax Differences (2026)

💰 Income Tax: 🇺🇸 United States has a higher top income tax rate (0–25% vs 10–37%). 🇩🇴 Dominican Republic is more favourable for high earners.

🛒 VAT/Sales Tax: Dominican Republic has a higher consumption tax (18% vs 0–11%).

🏢 Corporate Tax: 🇺🇸 United States offers a lower corporate rate (21% vs 27%), which can influence business location decisions.

📈 Capital Gains: 🇺🇸 United States taxes investment gains at a lower rate (20% vs 27%), benefiting investors.

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All 🇩🇴 Dominican Republic comparisons →All 🇺🇸 United States comparisons →