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Paraguay vs Australia
Tax Rate Comparison

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

🇵🇾 Paraguay
vs
🇦🇺 Australia
Tax Year:

💰 Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
8–10%
10% top; competitive positioning
No change
0–45%
+ 2% Medicare; thresholds indexed to CPI
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
10%
10% IVA maintained
No change
10%
No change planned
No change

Corporate Tax Rate

Corporate Tax Rate
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
25–30%
Stable; Pillar Two active for large MNCs
No change

Capital Gains Tax

Capital Gains Tax
8–10%
8%/10% maintained
No change
0–22.5%
50% discount maintained
No change

Social Security & Payroll

Social Security / Payroll
~25.5%
IPS reform discussions; adequacy concerns
No change
12%
12% super guarantee; target rate reached
No change
State, Regional & Local Taxes

🇵🇾 ParaguayMunicipal & Departmental Taxes

Paraguay's 17 departments and 254 municipalities levy the Impuesto Inmobiliario (property tax at 1% of assessed value), commercial licence fees (patente comercial), and vehicle registration fees. Asunción has the highest commercial licence fees. The Subsecretaría de Estado de Tributación (SET) administers national taxes. Paraguay has one of Latin America's lowest tax burdens (~12% of GDP) and has used flat low rates to attract foreign residents (MADES visa) and financial activity. No wealth tax exists.

🇦🇺 AustraliaState & Territory Taxes

Australia's 6 states and 2 territories levy payroll tax (4.75%–6.85%), stamp duty on property, and land tax on investment properties. There is no state income tax — income tax is federal only. The Stage 3 tax cuts (effective July 2024) restructured brackets significantly. The ACT is progressively replacing stamp duty with broad-based land value tax. Councils levy rates on property owners.

⚠️ 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.

Paraguay vs Australia: Key Tax Differences (2026)

💰 Income Tax: 🇦🇺 Australia has a higher top income tax rate (8–10% vs 0–45%). 🇵🇾 Paraguay is more favourable for high earners.

🛒 VAT/Sales Tax: Both countries have comparable consumption tax rates (10% vs 10%).

🏢 Corporate Tax: 🇵🇾 Paraguay offers a lower corporate rate (10% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇵🇾 Paraguay taxes investment gains at a lower rate (10% vs 22.5%), benefiting investors.

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All 🇵🇾 Paraguay comparisons →All 🇦🇺 Australia comparisons →