These 10 international locations pay much less taxes than People

0
77
These 10 countries pay less taxes than Americans

DraganSaponjic / Getty Images / iStockphoto

There’s no denying that taxes in the United States can put a heavy toll on your income. In fact, America’s highest individual and corporate tax rates are higher than many other countries. To determine where the tax bite is lower, GOBankingRates used data from the tax advisory service KPMG on individual and corporate tax rates around the world.

See: How To Avoid Paying Tax Legally – And The 11 Craziest Ways People Have Did It

Find out which countries have lower tax rates than the United States

Last updated: April 28, 2021

Washington DC Capitol Building

Washington DC Capitol Building

US tax rates

In 2017, the highest marginal tax rate for individuals was 39.6% and, according to the Tax Foundation, affected individual taxpayers with incomes of $ 418,400 and above and married taxpayers with total incomes of $ 470,700 or more.

However, the Tax Reduction and Employment Act lowered the maximum rate to 37% in 2018. This rate applies to individual taxpayers with taxable income of $ 500,000 or more and to married couples who jointly submit income of $ 600,000 or more according to the tax foundation.

The highest corporate tax rate in the U.S. was 35% in 2017, but the tax law lowered the corporate tax rate to 21%, and it has remained that way ever since. Read on to see how these U.S. taxes compare to taxes in other countries.

Get the details: Everything you need to know about the economy

Santiago, Chile

Santiago, Chile

Chile

Chile’s highest individual tax rate is not much lower than the highest US tax rate. However, like the US, Chile has a progressive tax rate and the lowest tax rate is 0%, according to KPMG. The lowest individual income tax rate in the United States is 10%. Chile is also one of those countries where residents pay less for health care than Americans.

Check Out: The 50 cheapest countries to retreat to

Mexico City

Mexico City

Mexico

America’s southern neighbors pay less individual and corporate taxes. Mexican residents also pay less for health care than Americans.

The story goes on

Read: 9 Legal Tax Haven To Protect Your Money

Thailand

Thailand

Thailand

The individual tax rate in Thailand is between 0% and 35%, which is only slightly lower than the highest individual US tax rate. According to KPMG, the income tax rate in Thailand was about 5 percentage points above the average rate in Asia.

Explore: Check Out Full List Of Most Influential & Making Money

Canada Toronto

Canada Toronto

Canada

America’s northern neighbors are facing a minor tax bite. Canada’s highest individual tax rate is about 7 percentage points below the highest US tax rate. However, the lowest rate is 15% compared to 10% in America.

According to another GOBankingRates study, the country’s residents not only benefit from Canada’s lower tax rate, but also have a lower cost of living than Americans.

New Zealand

New Zealand

New Zealand

Although nearby Australia has a higher tax rate than the US, New Zealand taxpayers have a lower tax rate than Americans. Also, residents do not need to file an annual tax return if their income comes from employment, interest or dividends and the correct amount of tax was withheld during the year according to KPMG.

View over the Schlossplatz in Warsaw's old town.

View over the Schlossplatz in Warsaw’s old town.

Poland

As one of the cheapest countries to live in, the highest individual and corporate tax rates in Poland are lower than in America. Poles also pay less taxes than many of their European neighbors.

Singapore

Singapore

Singapore

This Asian country is more tax-friendly than the US. It is also considered one of the most notorious tax havens in the world. In addition, individual and corporate tax rates are below the average rates in Asia.

Czech Republic

Czech Republic

Czech Republic

The Czech Republic has a flat tax rate of 15% on individual income. However, there is also a 7% solidarity tax on income.

Ukraine

Ukraine

Ukraine

This former Soviet republic has a lower individual income tax rate than the United States and the average tax rate in Europe. But its neighbor Russia has an even lower rate – 13%.

Did you know already? These are the most tax-friendly (and least) tax-friendly states for retirees

Budapest, Hungary

Budapest, Hungary

Hungary

Hungary has one of the lowest corporate tax rates in the world, according to the Tax Foundation. It is also one of the countries with the lowest taxes for individuals.

More from GOBankingRates

This article originally appeared on GOBankingRates.com: These 10 Countries Pay Less Taxes Than Americans