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United States vs Pakistan
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‡΅πŸ‡° Pakistan
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%
IMF fiscal consolidation; rate structure maintained
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0–11%
No federal sales tax; state avg ~6–9%
No change
18%
18% GST; digitalization of tax collection progressing
No change
Corporate Tax Rate
Corporate Tax Rate
21%
Federal flat; proposals to raise to 28% stalled
No change
29%
29% stable; FDI incentives in SEZs
No change
Capital Gains Tax
Capital Gains Tax
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change
15%
CGT unchanged; real estate documentation improving
No change
Social Security & Payroll
Social Security / Payroll
~15.3%
SS wage base ~$180,000 est. 2026
No change
~12%
EOBI; provincial systems varying
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‡΅πŸ‡° Pakistan β€” Provincial Sales Taxes & Levies

Pakistan's 4 provinces (Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan) levy their own sales tax on services at 13%–16%, separate from federal GST on goods. Agricultural income tax is exclusively provincial, though poorly collected. Sindh has the most developed provincial tax authority (SRB). Urban immovable property tax is provincial. Development surcharges and cess taxes vary by province. The FBR (Federal Board of Revenue) administers national taxes.

⚠️ 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 Pakistan: 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‡΅πŸ‡° Pakistan is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Pakistan has a higher consumption tax (0–11% vs 18%).

🏒 Corporate Tax: πŸ‡ΊπŸ‡Έ United States offers a lower corporate rate (21% vs 29%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡΅πŸ‡° Pakistan taxes investment gains at a lower rate (15% vs 20%), benefiting investors.

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