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United States vs El Salvador
Tax Rate Comparison

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

πŸ‡ΊπŸ‡Έ United States
vs
πŸ‡ΈπŸ‡» El Salvador
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
10–37%
TCJA provisions extended; no sunset
No change
0–30%
30% top; security improvements boosting economy
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0–11%
No federal sales tax; state avg ~6–9%
No change
13%
13% IVA stable
No change
Corporate Tax Rate
Corporate Tax Rate
21%
Federal flat; proposals to raise to 28% stalled
No change
30%
30%; special economic zones
No change
Capital Gains Tax
Capital Gains Tax
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change
10%
10% maintained
No change
Social Security & Payroll
Social Security / Payroll
~15.3%
SS wage base ~$180,000 est. 2026
No change
~15.5%
AFP system; pension adequacy improving
No change
State, Regional & Local Taxes

πŸ‡ΊπŸ‡Έ United States β€” State & Local Taxes

The U.S. has 50 states each setting their own income tax (0%–13.3%). 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.

πŸ‡ΈπŸ‡» 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%–1% 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.

⚠️ 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.

United States vs El Salvador: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡ΊπŸ‡Έ United States has a higher top income tax rate (10–37% vs 0–30%). πŸ‡ΈπŸ‡» El Salvador is more favourable for high earners.

πŸ›’ VAT/Sales Tax: El Salvador has a higher consumption tax (0–11% vs 13%).

🏒 Corporate Tax: πŸ‡ΊπŸ‡Έ United States offers a lower corporate rate (21% vs 30%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡ΈπŸ‡» El Salvador taxes investment gains at a lower rate (10% vs 20%), benefiting investors.

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