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Paraguay vs United States
Tax Rate Comparison

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

πŸ‡΅πŸ‡Ύ Paraguay
vs
πŸ‡ΊπŸ‡Έ United States
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
8–10%
10% top; competitive positioning
No change
10–37%
TCJA provisions extended; no sunset
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
10% IVA maintained
No change
0–11%
No federal sales tax; state avg ~6–9%
No change
Corporate Tax Rate
Corporate Tax Rate
10%
10%; Pillar Two for large MNCs operating in Paraguay
No change
21%
Federal flat; proposals to raise to 28% stalled
No change
Capital Gains Tax
Capital Gains Tax
8–10%
8%/10% maintained
No change
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change
Social Security & Payroll
Social Security / Payroll
~25.5%
IPS reform discussions; adequacy concerns
No change
~15.3%
SS wage base ~$180,000 est. 2026
No change
State, Regional & Local Taxes

πŸ‡΅πŸ‡Ύ Paraguay β€” 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. AsunciΓ³n has the highest commercial licence fees. The SubsecretarΓ­a de Estado de TributaciΓ³n (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.

πŸ‡ΊπŸ‡Έ United States β€” 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.

⚠️ 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.

Paraguay vs United States: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡ΊπŸ‡Έ United States has a higher top income tax rate (8–10% vs 10–37%). πŸ‡΅πŸ‡Ύ Paraguay is more favourable for high earners.

πŸ›’ VAT/Sales Tax: United States has a higher consumption tax (10% vs 0–11%).

🏒 Corporate Tax: πŸ‡΅πŸ‡Ύ Paraguay offers a lower corporate rate (10% vs 21%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡΅πŸ‡Ύ Paraguay taxes investment gains at a lower rate (10% vs 20%), benefiting investors.

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