New Zealand vs Tonga
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.
๐ณ๐ฟ New Zealand โ Local & Regional Council Rates
New Zealand's 67 councils (cities and districts) levy property rates (analogous to council tax). There are no provincial or state-level income taxes โ all income tax is national. GST is a national tax. Regional councils levy rates for transport, environmental, and water services. Auckland Council is New Zealand's largest with significant combined rating authority. The Earthquake Commission (EQC) levy is a national building insurance premium.
๐น๐ด Tonga โ Tonga Tax System
Tonga levies income tax at a flat 20% on income above the personal allowance. No capital gains tax. Consumption tax at 15% replaced the previous sales tax. The economy is heavily reliant on remittances (over 40% of GDP) from Tongans abroad, mainly in Australia, New Zealand and the US. Agriculture and fishing are the main domestic sectors.
New Zealand vs Tonga: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ณ๐ฟ New Zealand has a higher top income tax rate (10.5โ39% vs 0โ20%). ๐น๐ด Tonga is more favourable for high earners.
๐ VAT/Sales Tax: Both countries have comparable consumption tax rates (15% vs 15%).
๐ข Corporate Tax: ๐น๐ด Tonga offers a lower corporate rate (25% vs 28%), which can influence business location decisions.
๐ Capital Gains: ๐น๐ด Tonga taxes investment gains at a lower rate (0% vs 39%), benefiting investors.