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United Kingdom vs Ethiopia
Tax Rate Comparison

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

🇬🇧 United Kingdom
vs
🇪🇹 Ethiopia
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
0–45%
Thresholds remain frozen; fiscal drag continuing
No change
0–35%
Fiscal modernization continuing; bracket adjustments for inflation
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
0–20%
Standard 20% maintained
No change
15%
15% standard
No change

Corporate Tax Rate

Corporate Tax Rate
19–25%
25% main rate; possible future reform discussions
No change
30%
30%; industrial parks offer incentives
No change

Capital Gains Tax

Capital Gains Tax
18–24%
Post-Oct 2024 rates in full effect
No change
15%
15% maintained
No change

Social Security & Payroll

Social Security / Payroll
~28.3%
15% employer NI; lower secondary threshold remains
No change
~17%
Pension expansion targeted
No change
State, Regional & Local Taxes

🇬🇧 United KingdomDevolved, Council & Business Rates

Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically £1,200–£4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).

🇪🇹 EthiopiaRegional State Taxes

Ethiopia's 11 regional states and 2 chartered cities (Addis Ababa, Dire Dawa) have their own revenue authorities. Regional states collect income tax on employees of regional civil servants and businesses registered in their regions. Agricultural income tax is exclusively regional, though poorly collected in rural areas. The Ethiopian Revenues and Customs Authority (ERCA) administers federal taxes. Addis Ababa has the most developed tax administration. Turnover tax (TOT) of 2% applies to businesses below VAT threshold.

⚠️ 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.

United Kingdom vs Ethiopia: Key Tax Differences (2026)

💰 Income Tax: 🇬🇧 United Kingdom has a higher top income tax rate (0–45% vs 0–35%). 🇪🇹 Ethiopia is more favourable for high earners.

🛒 VAT/Sales Tax: United Kingdom has a higher consumption tax (0–20% vs 15%).

🏢 Corporate Tax: 🇬🇧 United Kingdom offers a lower corporate rate (25% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇪🇹 Ethiopia taxes investment gains at a lower rate (15% vs 24%), benefiting investors.

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All 🇬🇧 United Kingdom comparisons →All 🇪🇹 Ethiopia comparisons →