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India vs Ethiopia
Tax Rate Comparison

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

🇮🇳 India
vs
🇪🇹 Ethiopia
Tax Year:

💰 Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–30%
Zero tax slab expanded; new regime standard
No change
0–35%
Fiscal modernization continuing; bracket adjustments for inflation
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
0–28%
Further GST rationalization expected
No change
15%
15% standard
No change

Corporate Tax Rate

Corporate Tax Rate
22–25%
Pillar Two domestic rules being finalized
No change
30%
30%; industrial parks offer incentives
No change

Capital Gains Tax

Capital Gains Tax
12.5–20%
12.5% LTCG equity; 20% property with indexation
No change
15%
15% maintained
No change

Social Security & Payroll

Social Security / Payroll
24%
New social security code implementation ongoing
No change
~17%
Pension expansion targeted
No change
State, Regional & Local Taxes

🇮🇳 IndiaState, Professional & GST Variation

India's 28 states levy professional tax (up to ₹2,500/year), stamp duty on property (3%–8%), and state excise on alcohol. GST has largely unified indirect taxes but petroleum products remain state-controlled. Property tax (nagar nigam) varies by city. Maharashtra, Karnataka, and Tamil Nadu have higher professional taxes.

🇪🇹 EthiopiaRegional 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.

⚠️ 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.

India vs Ethiopia: Key Tax Differences (2026)

💰 Income Tax: 🇪🇹 Ethiopia has a higher top income tax rate (0–30% vs 0–35%). 🇮🇳 India is more favourable for high earners.

🛒 VAT/Sales Tax: India has a higher consumption tax (0–28% vs 15%).

🏢 Corporate Tax: 🇮🇳 India offers a lower corporate rate (25% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇪🇹 Ethiopia taxes investment gains at a lower rate (15% vs 20%), benefiting investors.

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