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Rwanda vs Ethiopia
Tax Rate Comparison

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

πŸ‡·πŸ‡Ό Rwanda
vs
πŸ‡ͺπŸ‡Ή Ethiopia
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
0–30%
30% top; tech and services hub ambitions
No change
0–35%
Fiscal modernization continuing; bracket adjustments for inflation
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
18%
18% maintained; leading African compliance
No change
15%
15% standard
No change
Corporate Tax Rate
Corporate Tax Rate
30%
30%; Pillar Two for MNCs; Kigali IFC growing
No change
30%
30%; industrial parks offer incentives
No change
Capital Gains Tax
Capital Gains Tax
5–30%
5% securities; 30% other
No change
15%
15% maintained
No change
Social Security & Payroll
Social Security / Payroll
~8%
RSSB reform; universal health insurance model
No change
~17%
Pension expansion targeted
No change
State, Regional & Local Taxes

πŸ‡·πŸ‡Ό Rwanda β€” District & Local Government Taxes

Rwanda's 30 districts (akarere) each have local tax collection powers. The Rwanda Revenue Authority (RRA) administers national taxes with high efficiency β€” Rwanda is consistently ranked highly for tax administration in Africa. Local taxes include market fees, business development taxes, and immovable property taxes. Districts receive grants and shared revenues from the national government. Rwanda has pursued aggressive economic development and tax reform as part of Vision 2050. E-invoicing (EBM machines) is mandatory for VAT-registered businesses.

πŸ‡ͺπŸ‡Ή Ethiopia β€” 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.

⚠️ 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.

Rwanda vs Ethiopia: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡ͺπŸ‡Ή Ethiopia has a higher top income tax rate (0–30% vs 0–35%). πŸ‡·πŸ‡Ό Rwanda is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Rwanda has a higher consumption tax (18% vs 15%).

🏒 Corporate Tax: Corporate rates are similar in both countries (30% vs 30%).

πŸ“ˆ Capital Gains: πŸ‡ͺπŸ‡Ή Ethiopia taxes investment gains at a lower rate (15% vs 30%), benefiting investors.

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