United States vs Paraguay
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.
🇵🇾 Paraguay — Municipal & 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.
United States vs Paraguay: Key Tax Differences (2026)
💰 Income Tax: 🇺🇸 United States has a higher top income tax rate (10–37% vs 8–10%). 🇵🇾 Paraguay is more favourable for high earners.
🛒 VAT/Sales Tax: United States has a higher consumption tax (0–11% vs 10%).
🏢 Corporate Tax: 🇵🇾 Paraguay offers a lower corporate rate (10% vs 21%), which can influence business location decisions.
📈 Capital Gains: 🇵🇾 Paraguay taxes investment gains at a lower rate (10% vs 20%), benefiting investors.