Dominican Republic vs United States
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฉ๐ด Dominican Republic โ Municipal Taxes
The Dominican Republic's 32 provinces and 158 municipalities levy the impuesto a la propiedad inmobiliaria (IPI) on properties above DOP 9.5M at 1%, commercial licences, and local service fees. The DGII (Direcciรณn General de Impuestos Internos) administers national taxes. The DR has been one of the fastest-growing economies in Latin America, with tourism, manufacturing (free trade zones), and remittances as key pillars. Tax reform has been ongoing to improve collection and reduce evasion.
๐บ๐ธ United States โ State & Local Taxes
The U.S. has 50 states each setting their own income tax (0%โ13.3%). 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.
Dominican Republic vs United States: Key Tax Differences (2026)
๐ฐ Income Tax: ๐บ๐ธ United States has a higher top income tax rate (0โ25% vs 10โ37%). ๐ฉ๐ด Dominican Republic is more favourable for high earners.
๐ VAT/Sales Tax: Dominican Republic has a higher consumption tax (18% vs 0โ11%).
๐ข Corporate Tax: ๐บ๐ธ United States offers a lower corporate rate (21% vs 27%), which can influence business location decisions.
๐ Capital Gains: ๐บ๐ธ United States taxes investment gains at a lower rate (20% vs 27%), benefiting investors.