Nicaragua vs Japan
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇳🇮 Nicaragua — Municipal 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.
🇯🇵 Japan — Prefectural & Municipal Inhabitant Tax
Japan's 47 prefectures levy inhabitant tax (住民税) at a flat 10% on top of national income tax — 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.
Nicaragua vs Japan: Key Tax Differences (2026)
💰 Income Tax: 🇯🇵 Japan has a higher top income tax rate (0–30% vs 5–45%). 🇳🇮 Nicaragua is more favourable for high earners.
🛒 VAT/Sales Tax: Nicaragua has a higher consumption tax (15% vs 8–10%).
🏢 Corporate Tax: 🇳🇮 Nicaragua offers a lower corporate rate (30% vs 30.62%), which can influence business location decisions.
📈 Capital Gains: 🇳🇮 Nicaragua taxes investment gains at a lower rate (15% vs 20.315%), benefiting investors.