Tonga vs Lesotho
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.
๐ฑ๐ธ Lesotho โ Lesotho Tax System
Lesotho is a landlocked enclave within South Africa with progressive income tax up to 35%. VAT is 15%. The country's economy is closely tied to South Africa โ customs revenues from SACU (Southern African Customs Union) provide a major share of government income. Textile exports (especially to the US under AGOA) and diamond mining are key sectors. Water royalties from the Lesotho Highlands Water Project also contribute.
Tonga vs Lesotho: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฑ๐ธ Lesotho has a higher top income tax rate (0โ20% vs 0โ35%). ๐น๐ด Tonga is more favourable for high earners.
๐ VAT/Sales Tax: Both countries have comparable consumption tax rates (15% vs 15%).
๐ข Corporate Tax: Corporate rates are similar in both countries (25% vs 25%).
๐ Capital Gains: ๐น๐ด Tonga taxes investment gains at a lower rate (0% vs 25%), benefiting investors.