United States vs Ethiopia
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
🇺🇸 United States — State & 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.
🇪🇹 Ethiopia — Regional 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.
United States vs Ethiopia: Key Tax Differences (2026)
💰 Income Tax: 🇺🇸 United States has a higher top income tax rate (10–37% vs 0–35%). 🇪🇹 Ethiopia is more favourable for high earners.
🛒 VAT/Sales Tax: Ethiopia has a higher consumption tax (0–11% vs 15%).
🏢 Corporate Tax: 🇺🇸 United States offers a lower corporate rate (21% vs 30%), which can influence business location decisions.
📈 Capital Gains: 🇪🇹 Ethiopia taxes investment gains at a lower rate (15% vs 20%), benefiting investors.