WorldTax Compareโ† All Comparisons

Ethiopia vs United Kingdom
Tax Rate Comparison

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

๐Ÿ‡ช๐Ÿ‡น Ethiopia
vs
๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“35%
Fiscal modernization continuing; bracket adjustments for inflation
No change
0โ€“45%
Thresholds remain frozen; fiscal drag continuing
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
15%
15% standard
No change
0โ€“20%
Standard 20% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
30%
30%; industrial parks offer incentives
No change
19โ€“25%
25% main rate; possible future reform discussions
No change
Capital Gains Tax
Capital Gains Tax
15%
15% maintained
No change
18โ€“24%
Post-Oct 2024 rates in full effect
No change
Social Security & Payroll
Social Security / Payroll
~17%
Pension expansion targeted
No change
~28.3%
15% employer NI; lower secondary threshold remains
No change
State, Regional & Local Taxes

๐Ÿ‡ช๐Ÿ‡น Ethiopia โ€” Regional State Taxes

Ethiopia's 11 regional states and 2 chartered cities (Addis Ababa, Dire Dawa) have their own revenue authorities. Regional states collect income tax on employees of regional civil servants and businesses registered in their regions. Agricultural income tax is exclusively regional, though poorly collected in rural areas. The Ethiopian Revenues and Customs Authority (ERCA) administers federal taxes. Addis Ababa has the most developed tax administration. Turnover tax (TOT) of 2% applies to businesses below VAT threshold.

๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom โ€” Devolved, Council & Business Rates

Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically ยฃ1,200โ€“ยฃ4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).

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

Ethiopia vs United Kingdom: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom has a higher top income tax rate (0โ€“35% vs 0โ€“45%). ๐Ÿ‡ช๐Ÿ‡น Ethiopia is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: United Kingdom has a higher consumption tax (15% vs 0โ€“20%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom offers a lower corporate rate (25% vs 30%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ช๐Ÿ‡น Ethiopia taxes investment gains at a lower rate (15% vs 24%), benefiting investors.

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