Tonga vs Japan
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.
๐น๐ด Tonga โ 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.
๐ฏ๐ต Japan โ Prefectural & Municipal Inhabitant Tax
Japan's 47 prefectures levy inhabitant tax (ไฝๆฐ็จ) at a flat 10% on top of national income tax โ 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.
Tonga vs Japan: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฏ๐ต Japan has a higher top income tax rate (0โ20% vs 5โ45%). ๐น๐ด Tonga is more favourable for high earners.
๐ VAT/Sales Tax: Tonga has a higher consumption tax (15% vs 8โ10%).
๐ข Corporate Tax: ๐น๐ด Tonga offers a lower corporate rate (25% vs 30.62%), which can influence business location decisions.
๐ Capital Gains: ๐น๐ด Tonga taxes investment gains at a lower rate (0% vs 20.315%), benefiting investors.