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Nicaragua vs Brazil
Tax Rate Comparison

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

🇳🇮 Nicaragua
vs
🇧🇷 Brazil
Tax Year:

💰 Personal Income Tax Calculator

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–30%
30% top; economic stability fragile
No change
0–27.5%
Zero-rate up to R$5,000/mo fully effective
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
15%
IVA 15% maintained
No change
~27.5% combined
IBS+CBS advancing; ICMS/ISS phasing out
-0.5pp vs 2025

Corporate Tax Rate

Corporate Tax Rate
30%
30% IR maintained
No change
34%
34% maintained; reform discussions ongoing
No change

Capital Gains Tax

Capital Gains Tax
15%
15% CGT
No change
15–22.5%
Offshore income now fully captured
No change

Social Security & Payroll

Social Security / Payroll
~25.25%
INSS reform pending
No change
~36%
Payroll simplification proposals ongoing
No change
State, Regional & Local Taxes

🇳🇮 NicaraguaMunicipal Taxes

Nicaragua's 153 municipalities levy the Impuesto de Matrícula (2% of prior revenues), Impuesto Municipal sobre Ingresos (IMI at 1% of monthly revenues), property tax (IBI at 1%), and service fees. Nicaragua under Ortega government has faced significant economic disruption from 2018 protests and subsequent international isolation. The economy has stabilized somewhat but remains one of the poorest in Central America. Tax administration reform has been ongoing with support from international institutions.

🇧🇷 BrazilState & Municipal Taxes

Brazil has one of the world's most complex tax systems. States levy ICMS at 7%–18% varying by state. Municipalities levy ISS (services tax) at 2%–5% and IPTU (urban property tax). A sweeping tax reform (EC 132/2023) is gradually replacing ICMS/ISS with unified IBS and CBS taxes through 2033. States impose ITCMD (inheritance/gift tax) up to 8%.

⚠️ 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.

Nicaragua vs Brazil: Key Tax Differences (2026)

💰 Income Tax: 🇳🇮 Nicaragua has a higher top income tax rate (0–30% vs 0–27.5%). 🇧🇷 Brazil is more favourable for high earners.

🛒 VAT/Sales Tax: Brazil has a higher consumption tax (15% vs ~27.5% combined).

🏢 Corporate Tax: 🇳🇮 Nicaragua offers a lower corporate rate (30% vs 34%), which can influence business location decisions.

📈 Capital Gains: 🇳🇮 Nicaragua taxes investment gains at a lower rate (15% vs 22.5%), benefiting investors.

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