United States vs Panama
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.
🇵🇦 Panama — Municipal & Corregimiento Taxes
Panama's 10 provinces and 81 districts have municipalities that levy commercial licence fees (Tasa Unica), property tax (impuesto de inmuebles at 0%–2.1%), and service fees. Panama City has the highest commercial licence fees. Panama uses a territorial tax system — income earned outside Panama is not taxed. This has made Panama a significant financial and trading hub. The Colón Free Zone is the world's second largest free trade zone. Panama is working to exit FATF grey lists and improve tax transparency.
United States vs Panama: Key Tax Differences (2026)
💰 Income Tax: 🇺🇸 United States has a higher top income tax rate (10–37% vs 0–25%). 🇵🇦 Panama is more favourable for high earners.
🛒 VAT/Sales Tax: United States has a higher consumption tax (0–11% vs 7%).
🏢 Corporate Tax: 🇺🇸 United States offers a lower corporate rate (21% vs 25%), which can influence business location decisions.
📈 Capital Gains: 🇵🇦 Panama taxes investment gains at a lower rate (10% vs 20%), benefiting investors.