Tonga vs Germany
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
πΉπ΄ Tonga β Tonga Tax System
Tonga levies income tax at a flat 20% on income above the personal allowance. No capital gains tax. Consumption tax at 15% replaced the previous sales tax. The economy is heavily reliant on remittances (over 40% of GDP) from Tongans abroad, mainly in Australia, New Zealand and the US. Agriculture and fishing are the main domestic sectors.
π©πͺ Germany β Trade Tax (Gewerbesteuer) & Church Tax
Germany's 16 BundeslΓ€nder apply federal income tax rates uniformly β no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7β17% effective. Church tax (Kirchensteuer) of 8β9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.
Tonga vs Germany: Key Tax Differences (2026)
π° Income Tax: π©πͺ Germany has a higher top income tax rate (0β20% vs 14β45%). πΉπ΄ Tonga is more favourable for high earners.
π VAT/Sales Tax: Germany has a higher consumption tax (15% vs 7β19%).
π’ Corporate Tax: πΉπ΄ Tonga offers a lower corporate rate (25% vs 29%), which can influence business location decisions.
π Capital Gains: πΉπ΄ Tonga taxes investment gains at a lower rate (0% vs 25%), benefiting investors.