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United States vs Ethiopia
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‡ͺπŸ‡Ή Ethiopia
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
0–35%
Fiscal modernization continuing; bracket adjustments for inflation
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0–11%
No federal sales tax; state avg ~6–9%
No change
15%
15% standard
No change
Corporate Tax Rate
Corporate Tax Rate
21%
Federal flat; proposals to raise to 28% stalled
No change
30%
30%; industrial parks offer incentives
No change
Capital Gains Tax
Capital Gains Tax
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change
15%
15% maintained
No change
Social Security & Payroll
Social Security / Payroll
~15.3%
SS wage base ~$180,000 est. 2026
No change
~17%
Pension expansion targeted
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‡ͺπŸ‡Ή Ethiopia β€” Regional State Taxes

Ethiopia's 11 regional states and 2 chartered cities (Addis Ababa, Dire Dawa) have their own revenue authorities. Regional states collect income tax on employees of regional civil servants and businesses registered in their regions. Agricultural income tax is exclusively regional, though poorly collected in rural areas. The Ethiopian Revenues and Customs Authority (ERCA) administers federal taxes. Addis Ababa has the most developed tax administration. Turnover tax (TOT) of 2% applies to businesses below VAT threshold.

⚠️ 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 Ethiopia: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡ΊπŸ‡Έ United States has a higher top income tax rate (10–37% vs 0–35%). πŸ‡ͺπŸ‡Ή Ethiopia is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Ethiopia has a higher consumption tax (0–11% vs 15%).

🏒 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‡ͺπŸ‡Ή Ethiopia taxes investment gains at a lower rate (15% vs 20%), benefiting investors.

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