Peru vs Brazil
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
π΅πͺ Peru β Municipal Taxes & Regional Licenses
Peru's 25 regions and 1,874 municipalities have limited tax powers. Municipalities levy Impuesto Predial (property tax at 0.2%β1% of self-assessed value), vehicle tax (Impuesto al Patrimonio Vehicular), and business licences. Alcabala (property transfer tax) is municipal at 3% of value above 10 UIT. The national tax authority (SUNAT) administers income and VAT taxes. Peru has a flat corporate rate and progressive personal income tax system.
π§π· Brazil β State & Municipal Taxes
Brazil has one of the world's most complex tax systems. States levy ICMS at 7%β18% varying by state. Municipalities levy ISS (services tax) at 2%β5% 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%.
Peru vs Brazil: Key Tax Differences (2026)
π° Income Tax: π΅πͺ Peru has a higher top income tax rate (8β30% vs 0β27.5%). π§π· Brazil is more favourable for high earners.
π VAT/Sales Tax: Brazil has a higher consumption tax (18% vs ~27.5% combined).
π’ Corporate Tax: π΅πͺ Peru offers a lower corporate rate (29.5% vs 34%), which can influence business location decisions.
π Capital Gains: π΅πͺ Peru taxes investment gains at a lower rate (5% vs 22.5%), benefiting investors.