Iraq vs United States
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.
๐ฎ๐ถ Iraq โ Governorate Taxes
Iraq's 18 governorates (muhafazat) have limited independent taxing powers under the federal system. The Kurdish Region of Iraq (KRI โ Erbil, Sulaymaniyah, Dohuk) has its own tax administration and revenue share arrangement with Baghdad. The Federal Board of Supreme Audit and Tax Commission administer national taxes. Oil revenues dominate the Iraqi budget (~90% of government revenue), meaning formal taxation plays a smaller role than in most countries. Reconstruction and diversification remain key challenges.
๐บ๐ธ United States โ State & Local Taxes
The U.S. has 50 states each setting their own income tax (0%โ13.3%). 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.
Iraq vs United States: Key Tax Differences (2026)
๐ฐ Income Tax: ๐บ๐ธ United States has a higher top income tax rate (3โ15% vs 10โ37%). ๐ฎ๐ถ Iraq is more favourable for high earners.
๐ VAT/Sales Tax: United States has a higher consumption tax (0% vs 0โ11%).
๐ข Corporate Tax: ๐ฎ๐ถ Iraq offers a lower corporate rate (15% vs 21%), which can influence business location decisions.
๐ Capital Gains: ๐ฎ๐ถ Iraq taxes investment gains at a lower rate (15% vs 20%), benefiting investors.