United States vs El Salvador
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.
πΊπΈ United States β State & Local Taxes
The U.S. has 50 states each setting their own income tax (0%β13.3%). 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.
πΈπ» El Salvador β Municipal Taxes
El Salvador's 262 municipalities levy local taxes including the impuesto municipal de activo empresarial (business assets tax at 0.1%β1% of net assets), commercial licence fees, and property registration fees. San Salvador municipality has the highest rates. The Ministry of Finance (MH) administers national taxes. El Salvador adopted Bitcoin as legal tender in 2021 (alongside USD), creating unique crypto tax considerations, though the Bitcoin Law was modified in 2025. The country has attracted significant nearshoring and blockchain sector investment.
United States vs El Salvador: Key Tax Differences (2026)
π° Income Tax: πΊπΈ United States has a higher top income tax rate (10β37% vs 0β30%). πΈπ» El Salvador is more favourable for high earners.
π VAT/Sales Tax: El Salvador has a higher consumption tax (0β11% vs 13%).
π’ Corporate Tax: πΊπΈ United States offers a lower corporate rate (21% vs 30%), which can influence business location decisions.
π Capital Gains: πΈπ» El Salvador taxes investment gains at a lower rate (10% vs 20%), benefiting investors.