Countries With the Best Taxes, Ranked

Banking, finance, and taxes

Published: May 6, 2024 2:50 pm

Taxation and accounting jokes are almost as numerous as lawyer jokes. No doubt, the reason is partly because of the stress-induced tax season and a process many Americans complain is painful and anxiety-ridden. In addition to resenting the complexity of the tax system, a majority (56%) feel they pay more than their fair share in taxes, according to Pew Research Center.

Can relocating to another country help individuals and entrepreneurs seeking to optimize their taxes? Well, according to expat tax services company Greenback, quite a few countries have lower tax rates and less complex tax systems than the U.S.

To find the countries with the best tax rates, 24/7 Wall St. reviewed Greenback’s report Countries and States With the Best Tax Rates. Using PwC’s tax summaries, Greenback found the rates for personal income tax, value-added tax, capital gains tax, inheritance tax, and corporate tax for 144 countries, arriving at an overall tax score out of 100. The 40 countries with the highest score — best tax rates — are listed here. We also added from the World Bank data on gross domestic product per capita in current U.S. dollars and total population.

Several of the highest ranking countries are considered a tax haven, meaning certain taxes there are levied at a low rate or not levied at all, attracting foreign individuals and businesses. These regions also often offer financial secrecy and minimal regulatory oversight. While tax havens can significantly reduce income taxes, they raise ethical and political considerations, Greenback notes, including fairness “and the responsibility of individuals and corporations to contribute to the public finances of their home countries.”

Looking at all the tax categories, Bermuda, the Cayman Islands, Kuwait, the United Arab Emirates, Macau, Oman, Qatar, Hong Kong, Greenland, and Timor-Leste are offering some of the lowest tax rates. “These jurisdictions represent the pinnacle of tax competitiveness,” Greenback adds. While eight countries levy no personal income tax, only Bermuda and the Cayman Islands offer a 0% corporate income tax rate. (See Exactly How Much Each State Taxes Your Gas.)

In the U.S., individual income taxes are by far the government’s largest single source of revenue, with tax dollars mostly going to social services. The U.S. is known for its complex tax code, combining federal, state, and local taxes. Using a progressive tax system, the U.S. personal income tax rate ranges from 10% to 37% at the federal level. And while the U.S. does not have a federal value-added tax, there are state-level sales taxes. It ranks 49th for its overall tax score.

Here are the comparable U.S. figures:

Overall tax score: 59.78 out of 100
Maximum personal income tax rate: 37% — #103 lowest out of 144 countries
Maximum value-added tax rate: 0.0% — #1 lowest of 144 counties
Maximum corporate tax rate: 21.0% — #58 lowest out of 144 countries
GDP per capita, 2022: $76,330 — #11 highest of 144 countries

Why This Matters

Young stressed Caucasian couple facing financials troubles, sitting at kitchen table with papers, calculator and laptop computer and reading document from bank, looking frustrated and unhappy

With tax season in the rearview mirror, now is the time that some people may be asking themselves whether it is worth relocating in order to pay less taxes and avoid the anxiety that comes with filing taxes. Some countries are indeed tax havens for individuals and/or corporations, or simply have lower tax rates, and corporations and individuals can relocate there. Of course, many other issues come into play when considering relocation, including socioeconomic factors and geographical location, among others. Here we aim to at least provide a list of the countries that may be more convenient in one aspect only — taxes.

40. Eswatini

Overall tax score: 63.28 out of 100
Maximum personal income tax rate: 33% — #80 lowest out of 144 countries
Maximum value-added tax rate: 15.0% — #54 lowest of 144 counties
Maximum corporate tax rate: 27.5% — #103 lowest out of 144 countries
GDP per capita, 2022: $3,987 — #105 highest of 144 countries
Total population, 2022: 1,192,271
Region: Sub-Saharan Africa

39. Montenegro

Overall tax score: 63.76 out of 100
Maximum personal income tax rate: 15% — #26 lowest out of 144 countries
Maximum value-added tax rate: 21.0% — #122 lowest of 144 counties
Maximum corporate tax rate: 15.0% — #17 lowest out of 144 countries
GDP per capita, 2022: $10,093 — #72 highest of 144 countries
Total population, 2022: 619,211
Region: Europe and Northern America

38. Angola

Overall tax score: 64.46 out of 100
Maximum personal income tax rate: 25% — #48 lowest out of 144 countries
Maximum value-added tax rate: 14.0% — #49 lowest of 144 counties
Maximum corporate tax rate: 25.0% — #79 lowest out of 144 countries
GDP per capita, 2022: $3,000 — #114 highest of 144 countries
Total population, 2022: 34,503,774
Region: Sub-Saharan Africa

37. Trinidad and Tobago

Overall tax score: 64.51 out of 100
Maximum personal income tax rate: 30% — #64 lowest out of 144 countries
Maximum value-added tax rate: 12.5% — #43 lowest of 144 counties
Maximum corporate tax rate: 35.0% — #132 lowest out of 144 countries
GDP per capita, 2022: $19,629 — #52 highest of 144 countries
Total population, 2022: 1,525,663
Region: Latin America and the Caribbean

36. Tajikistan

Overall tax score: 66.07 out of 100
Maximum personal income tax rate: 20% — #30 lowest out of 144 countries
Maximum value-added tax rate: 15.0% — #54 lowest of 144 counties
Maximum corporate tax rate: 20.0% — #36 lowest out of 144 countries
GDP per capita, 2022: $1,054 — #134 highest of 144 countries
Total population, 2022: 9,750,064
Region: Central and Southern Asia

35. Saint Lucia

Overall tax score: 66.07 out of 100
Maximum personal income tax rate: 30% — #64 lowest out of 144 countries
Maximum value-added tax rate: 12.5% — #43 lowest of 144 counties
Maximum corporate tax rate: 30.0% — #109 lowest out of 144 countries
GDP per capita, 2022: $13,031 — #63 highest of 144 countries
Total population, 2022: 179,857
Region: Latin America and the Caribbean

34. Isle of Man

Overall tax score: 66.96 out of 100
Maximum personal income tax rate: 20% — #30 lowest out of 144 countries
Maximum value-added tax rate: 20.0% — #108 lowest of 144 counties
Maximum corporate tax rate: 20.0% — #36 lowest out of 144 countries
GDP per capita, 2020: $79,531 — #10 highest of 144 countries
Total population, 2022: 84,263
Region: Europe and Northern America

33. Cambodia

Overall tax score: 68.75 out of 100
Maximum personal income tax rate: 20% — #30 lowest out of 144 countries
Maximum value-added tax rate: 10.0% — #24 lowest of 144 counties
Maximum corporate tax rate: 20.0% — #36 lowest out of 144 countries
GDP per capita, 2022: $1,760 — #125 highest of 144 countries
Total population, 2022: 16,589,023
Region: Eastern and South-Eastern Asia

32. Moldova

Overall tax score: 68.75 out of 100
Maximum personal income tax rate: 12% — #22 lowest out of 144 countries
Maximum value-added tax rate: 20.0% — #108 lowest of 144 counties
Maximum corporate tax rate: 12.0% — #13 lowest out of 144 countries
GDP per capita, 2022: $5,714 — #92 highest of 144 countries
Total population, 2022: 2,595,809
Region: Europe and Northern America

31. Maldives

Overall tax score: 68.97 out of 100
Maximum personal income tax rate: 15% — #26 lowest out of 144 countries
Maximum value-added tax rate: 16.0% — #72 lowest of 144 counties
Maximum corporate tax rate: 15.0% — #17 lowest out of 144 countries
GDP per capita, 2022: $11,781 — #66 highest of 144 countries
Total population, 2022: 521,457
Region: Central and Southern Asia

30. Nigeria

Overall tax score: 69.64 out of 100
Maximum personal income tax rate: 24% — #46 lowest out of 144 countries
Maximum value-added tax rate: 7.5% — #19 lowest of 144 counties
Maximum corporate tax rate: 30.0% — #109 lowest out of 144 countries
GDP per capita, 2022: $2,163 — #121 highest of 144 countries
Total population, 2022: 213,401,323
Region: Sub-Saharan Africa

29. Bolivia

Overall tax score: 69.78 out of 100
Maximum personal income tax rate: 13% — #25 lowest out of 144 countries
Maximum value-added tax rate: 13.0% — #45 lowest of 144 counties
Maximum corporate tax rate: 25.0% — #79 lowest out of 144 countries
GDP per capita, 2022: $3,600 — #108 highest of 144 countries
Total population, 2022: 12,079,472
Region: Latin America and the Caribbean

28. Barbados

Overall tax score: 69.93 out of 100
Maximum personal income tax rate: 29% — #63 lowest out of 144 countries
Maximum value-added tax rate: 17.5% — #84 lowest of 144 counties
Maximum corporate tax rate: 5.5% — #3 lowest out of 144 countries
GDP per capita, 2022: $20,239 — #51 highest of 144 countries
Total population, 2022: 281,200
Region: Latin America and the Caribbean

27. Romania

Maramures, Romania. by Mihai Lucu00eeu021b

Maramures, Romania. (CC BY 2.0) by Mihai Lucu00eeu021b

Overall tax score: 70 out of 100
Maximum personal income tax rate: 10% — #10 lowest out of 144 countries
Maximum value-added tax rate: 19.0% — #100 lowest of 144 counties
Maximum corporate tax rate: 16.0% — #28 lowest out of 144 countries
GDP per capita, 2022: $15,787 — #58 highest of 144 countries
Total population, 2022: 19,122,059
Region: Europe and Northern America

26. Liechtenstein

Overall tax score: 70.65 out of 100
Maximum personal income tax rate: 22% — #43 lowest out of 144 countries
Maximum value-added tax rate: 7.7% — #20 lowest of 144 counties
Maximum corporate tax rate: 12.5% — #15 lowest out of 144 countries
GDP per capita, 2021: $197,505 — #1 highest of 144 countries
Total population, 2022: 39,039
Region: Europe and Northern America

25. North Macedonia

Overall tax score: 71.52 out of 100
Maximum personal income tax rate: 10% — #10 lowest out of 144 countries
Maximum value-added tax rate: 18.0% — #85 lowest of 144 counties
Maximum corporate tax rate: 10.0% — #6 lowest out of 144 countries
GDP per capita, 2022: $6,591 — #88 highest of 144 countries
Total population, 2022: 2,065,092
Region: Europe and Northern America

24. Turkmenistan

Overall tax score: 72.32 out of 100
Maximum personal income tax rate: 10% — #10 lowest out of 144 countries
Maximum value-added tax rate: 15.0% — #54 lowest of 144 counties
Maximum corporate tax rate: 20.0% — #36 lowest out of 144 countries
GDP per capita, 2022: $8,793 — #76 highest of 144 countries
Total population, 2022: 6,341,855
Region: Central and Southern Asia

23. Kosovo

Kosovo (CC BY-SA 2.0) by William John Gauthier

Overall tax score: 72.77 out of 100
Maximum personal income tax rate: 10% — #10 lowest out of 144 countries
Maximum value-added tax rate: 18.0% — #85 lowest of 144 counties
Maximum corporate tax rate: 10.0% — #6 lowest out of 144 countries
GDP per capita, 2022: $5,340 — #95 highest of 144 countries
Total population, 2022: 1,786,038
Region: Europe and Northern America

22. Mauritius

Overall tax score: 72.99 out of 100
Maximum personal income tax rate: 20% — #30 lowest out of 144 countries
Maximum value-added tax rate: 15.0% — #54 lowest of 144 counties
Maximum corporate tax rate: 15.0% — #17 lowest out of 144 countries
GDP per capita, 2022: $10,256 — #70 highest of 144 countries
Total population, 2022: 1,266,334
Region: Sub-Saharan Africa

21. Myanmar

Government building (Yangon Ci... by Francisco Anzola

Government building (Yangon Ci... (CC BY 2.0) by Francisco Anzola

Overall tax score: 73.93 out of 100
Maximum personal income tax rate: 25% — #48 lowest out of 144 countries
Maximum value-added tax rate: 5.0% — #11 lowest of 144 counties
Maximum corporate tax rate: 22.0% — #63 lowest out of 144 countries
GDP per capita, 2022: $1,149 — #133 highest of 144 countries
Total population, 2022: 53,798,084
Region: Eastern and South-Eastern Asia

20. Uzbekistan

Overall tax score: 74.96 out of 100
Maximum personal income tax rate: 12% — #22 lowest out of 144 countries
Maximum value-added tax rate: 12.0% — #37 lowest of 144 counties
Maximum corporate tax rate: 15.0% — #17 lowest out of 144 countries
GDP per capita, 2022: $2,255 — #119 highest of 144 countries
Total population, 2022: 34,915,100
Region: Central and Southern Asia

19. Kazakhstan

Overall tax score: 75 out of 100
Maximum personal income tax rate: 10% — #10 lowest out of 144 countries
Maximum value-added tax rate: 12.0% — #37 lowest of 144 counties
Maximum corporate tax rate: 20.0% — #36 lowest out of 144 countries
GDP per capita, 2022: $11,492 — #68 highest of 144 countries
Total population, 2022: 19,000,988
Region: Central and Southern Asia

18. Laos

Overall tax score: 75.63 out of 100
Maximum personal income tax rate: 25% — #48 lowest out of 144 countries
Maximum value-added tax rate: 7.0% — #16 lowest of 144 counties
Maximum corporate tax rate: 20.0% — #36 lowest out of 144 countries
GDP per capita, 2022: $2,054 — #124 highest of 144 countries
Total population, 2022: 7,529,475
Region: Eastern and South-Eastern Asia

17. Singapore

Singapore (CC BY 2.0) by Fabio Achilli

Overall tax score: 75.94 out of 100
Maximum personal income tax rate: 24% — #46 lowest out of 144 countries
Maximum value-added tax rate: 9.0% — #22 lowest of 144 counties
Maximum corporate tax rate: 17.0% — #30 lowest out of 144 countries
GDP per capita, 2022: $82,808 — #9 highest of 144 countries
Total population, 2022: 5,453,566
Region: Eastern and South-Eastern Asia

16. Bahrain

Overall tax score: 76.7 out of 100
Maximum personal income tax rate: 0% — #1 lowest out of 144 countries
Maximum value-added tax rate: 10.0% — #24 lowest of 144 counties
Maximum corporate tax rate: 46.0% — #143 lowest out of 144 countries
GDP per capita, 2022: $30,147 — #39 highest of 144 countries
Total population, 2022: 1,463,265
Region: Northern Africa and Western Asia

15. Kyrgyzstan

Overall tax score: 78.13 out of 100
Maximum personal income tax rate: 10% — #10 lowest out of 144 countries
Maximum value-added tax rate: 12.0% — #37 lowest of 144 counties
Maximum corporate tax rate: 10.0% — #6 lowest out of 144 countries
GDP per capita, 2022: $1,655 — #127 highest of 144 countries
Total population, 2022: 6,974,900
Region: Central and Southern Asia

14. Paraguay

Overall tax score: 79.91 out of 100
Maximum personal income tax rate: 10% — #10 lowest out of 144 countries
Maximum value-added tax rate: 10.0% — #24 lowest of 144 counties
Maximum corporate tax rate: 10.0% — #6 lowest out of 144 countries
GDP per capita, 2022: $6,153 — #90 highest of 144 countries
Total population, 2022: 6,703,799
Region: Latin America and the Caribbean

13. Jersey

Jersey (CC BY-SA 2.0) by Hugh Llewelyn

Overall tax score: 80.17 out of 100
Maximum personal income tax rate: 20% — #30 lowest out of 144 countries
Maximum value-added tax rate: 5.0% — #11 lowest of 144 counties
Maximum corporate tax rate: 20.0% — #36 lowest out of 144 countries
GDP per capita, 2022: N/A — #N/A highest of 144 countries
Total population, 2022: 103,387
Region: Europe and Northern America

12. Saudi Arabia

Overall tax score: 80.36 out of 100
Maximum personal income tax rate: 0% — #1 lowest out of 144 countries
Maximum value-added tax rate: 15.0% — #54 lowest of 144 counties
Maximum corporate tax rate: 20.0% — #36 lowest out of 144 countries
GDP per capita, 2022: $30,448 — #38 highest of 144 countries
Total population, 2022: 35,950,396
Region: Northern Africa and Western Asia

11. Guernsey

Guernsey (CC BY-SA 2.0) by Hugh Llewelyn

Overall tax score: 84.82 out of 100
Maximum personal income tax rate: 20% — #30 lowest out of 144 countries
Maximum value-added tax rate: 0.0% — #1 lowest of 144 counties
Maximum corporate tax rate: 20.0% — #36 lowest out of 144 countries
GDP per capita, 2022: N/A — #N/A highest of 144 countries
Total population, 2022: 67,787
Region: Europe and Northern America

10. Timor-Leste

Overall tax score: 86.61 out of 100
Maximum personal income tax rate: 10% — #10 lowest out of 144 countries
Maximum value-added tax rate: 2.5% — #10 lowest of 144 counties
Maximum corporate tax rate: 10.0% — #6 lowest out of 144 countries
GDP per capita, 2022: $2,389 — #117 highest of 144 countries
Total population, 2022: 1,320,942
Region: Eastern and South-Eastern Asia

9. Greenland

Overall tax score: 87.25 out of 100
Maximum personal income tax rate: 10% — #10 lowest out of 144 countries
Maximum value-added tax rate: 0.0% — #1 lowest of 144 counties
Maximum corporate tax rate: 26.5% — #99 lowest out of 144 countries
GDP per capita, 2021: $57,116 — #15 highest of 144 countries
Total population, 2022: 56,653
Region: Europe and Northern America

8. Hong Kong

Hong Kong, Apr-12 (CC BY-SA 2.0) by Mitch Altman

Overall tax score: 88.15 out of 100
Maximum personal income tax rate: 15% — #26 lowest out of 144 countries
Maximum value-added tax rate: 0.0% — #1 lowest of 144 counties
Maximum corporate tax rate: 16.5% — #29 lowest out of 144 countries
GDP per capita, 2022: $48,984 — #24 highest of 144 countries
Total population, 2022: 7,346,100
Region: Eastern and South-Eastern Asia

7. Qatar

Overall tax score: 89.06 out of 100
Maximum personal income tax rate: 0% — #1 lowest out of 144 countries
Maximum value-added tax rate: 0.0% — #1 lowest of 144 counties
Maximum corporate tax rate: 35.0% — #132 lowest out of 144 countries
GDP per capita, 2022: $87,661 — #8 highest of 144 countries
Total population, 2022: 2,688,235
Region: Northern Africa and Western Asia

6. Oman

Overall tax score: 90.85 out of 100
Maximum personal income tax rate: 0% — #1 lowest out of 144 countries
Maximum value-added tax rate: 5.0% — #11 lowest of 144 counties
Maximum corporate tax rate: 15.0% — #17 lowest out of 144 countries
GDP per capita, 2022: $25,057 — #45 highest of 144 countries
Total population, 2022: 4,520,471
Region: Northern Africa and Western Asia

5. Macau

Overall tax score: 90.89 out of 100
Maximum personal income tax rate: 12% — #22 lowest out of 144 countries
Maximum value-added tax rate: 0.0% — #1 lowest of 144 counties
Maximum corporate tax rate: 12.0% — #13 lowest out of 144 countries
GDP per capita, 2022: $34,585 — #32 highest of 144 countries
Total population, 2022: 695,168
Region: Eastern and South-Eastern Asia

4. United Arab Emirates

Overall tax score: 92.72 out of 100
Maximum personal income tax rate: 0% — #1 lowest out of 144 countries
Maximum value-added tax rate: 5.0% — #11 lowest of 144 counties
Maximum corporate tax rate: 9.0% — #4 lowest out of 144 countries
GDP per capita, 2022: $53,708 — #20 highest of 144 countries
Total population, 2022: 9,365,145
Region: Northern Africa and Western Asia

3. Kuwait

Overall tax score: 95.31 out of 100
Maximum personal income tax rate: 0% — #1 lowest out of 144 countries
Maximum value-added tax rate: 0.0% — #1 lowest of 144 counties
Maximum corporate tax rate: 15.0% — #17 lowest out of 144 countries
GDP per capita, 2022: $41,080 — #28 highest of 144 countries
Total population, 2022: 4,250,114
Region: Northern Africa and Western Asia

1. Bermuda

Overall tax score: 100 out of 100
Maximum personal income tax rate: 0% — #1 lowest out of 144 countries
Maximum value-added tax rate: 0.0% — #1 lowest of 144 counties
Maximum corporate tax rate: 0.0% — #1 lowest out of 144 countries
GDP per capita, 2022: $118,775 — #3 highest of 144 countries
Total population, 2022: 63,764
Region: Europe and Northern America

1. Cayman Islands

Overall tax score: 100 out of 100
Maximum personal income tax rate: 0% — #1 lowest out of 144 countries
Maximum value-added tax rate: 0.0% — #1 lowest of 144 counties
Maximum corporate tax rate: 0.0% — #1 lowest out of 144 countries
GDP per capita, 2022: $99,625 — #6 highest of 144 countries
Total population, 2022: 68,136
Region: Latin America and the Caribbean

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Read more: Banking, finance, and taxes, bermuda, cayman islands, corporate tax, countries with lowest tax rates, coutnries with lowest taxes, greenback expat tax services, Kuwait, macau, personal income tax, Taxes, uae, value-added tax

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