WorldTax CompareAll Comparisons

Pakistan vs United States
Tax Rate Comparison

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

🇵🇰 Pakistan
vs
🇺🇸 United States
Tax Year:

💰 Personal Income Tax Calculator

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

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–35%
IMF fiscal consolidation; rate structure maintained
No change
10–37%
TCJA provisions extended; no sunset
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
18%
18% GST; digitalization of tax collection progressing
No change
0–11%
No federal sales tax; state avg ~6–9%
No change

Corporate Tax Rate

Corporate Tax Rate
29%
29% stable; FDI incentives in SEZs
No change
21%
Federal flat; proposals to raise to 28% stalled
No change

Capital Gains Tax

Capital Gains Tax
15%
CGT unchanged; real estate documentation improving
No change
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change

Social Security & Payroll

Social Security / Payroll
~12%
EOBI; provincial systems varying
No change
~15.3%
SS wage base ~$180,000 est. 2026
No change
State, Regional & Local Taxes

🇵🇰 PakistanProvincial Sales Taxes & Levies

Pakistan's 4 provinces (Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan) levy their own sales tax on services at 13%–16%, separate from federal GST on goods. Agricultural income tax is exclusively provincial, though poorly collected. Sindh has the most developed provincial tax authority (SRB). Urban immovable property tax is provincial. Development surcharges and cess taxes vary by province. The FBR (Federal Board of Revenue) administers national taxes.

🇺🇸 United StatesState & Local Taxes

The U.S. has 50 states each setting their own income tax (0%–13.3%). 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.

⚠️ 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.

Pakistan vs United States: Key Tax Differences (2026)

💰 Income Tax: 🇺🇸 United States has a higher top income tax rate (0–35% vs 10–37%). 🇵🇰 Pakistan is more favourable for high earners.

🛒 VAT/Sales Tax: Pakistan has a higher consumption tax (18% vs 0–11%).

🏢 Corporate Tax: 🇺🇸 United States offers a lower corporate rate (21% vs 29%), which can influence business location decisions.

📈 Capital Gains: 🇵🇰 Pakistan taxes investment gains at a lower rate (15% vs 20%), benefiting investors.

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