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Countries With The Lowest Income Tax Rates

Countries With The Lowest Income Tax Rates

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With all the debate around taxation in the U.S., we should pause to appreciate that we are at least on the list of countries with the lowest tax rates – granted, we’re on the lower end of that list. Check out these countries around the world whose residents may or may not appreciate how lucky they are.

WENN
WENN

Australia

31.5%

The country of sun and surf has recovered remarkably quickly from the economic crisis experienced the world over, with unemployment rates already down to 5.5%. Perhaps lower taxes mean individuals can pay off tax debts which has lent itself to this recovery.

Dominic Chan/WENN
Dominic Chan/WENN

Canada

31.2%

Canada manages to provide its citizens with decent social programs, including universal health coverage for all, considering its relatively low tax rates. Luckily for residents, the country has ruled against raising taxes in order to solve its deficit, opting instead to limit public spending.

Daniel Deme/WENN
Daniel Deme/WENN

USA

27%

The “epicenter of world trade” is a relatively tax-friendly place to live. This could explain why the country remains the most immigrated-to on the planet, along with the nearly 100% free market policies, and a respectable level of social safety plans.

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WENN

Jamaica

25%

It’s no wonder this country produces such peaceful music: the residents are enjoying tax rates lower than the U.S. Some individuals are subject to about a 2% raise in taxes, but that only becomes effective after making around $500,000. In other words, the country’s wealthy citizens pay the same taxes as more moderate earners.

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WENN

Switzerland

20%

Here’s the reason behind people’s love for moving money into Swiss banks: Switzerland is considered a country that enjoys the low-tax high life, with a reputation for luxury. Of course, it’s easier to afford waterfront restaurants in Lugano and ski days in the Alps when you barely pay taxes!

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WENN

Singapore

20%

Tax rates for individuals are capped at 20% for residents in Singapore. Non-residents pay a flat rate of 15%. The country works on a “locality of source of income,” meaning companies and individuals are taxed primarily on Singapore-sourced income.

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WENN

Hong Kong

15%

Like the U.S., Hong Kong is considered one of the major players in the international financial markets. Yet tax rates remain super low. Individuals are taxed within the brackets of 2%, 7%, 12% and finally 17%, or 15% of net income (accessible income after deductions) — whichever is lower.

Judy Eddy/WENN
Judy Eddy/WENN

Costa Rica

15%

The popular vacation destination for U.S. citizens enjoys one of the lowest tax rates in the world, with personal income tax rates capped at 15%, and 10% rates not kicking in until around $28,000 in income.

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WENN

Czech Republic

15%

However the world-famous architecture of the Czech Republic is maintained, it isn’t through hiked-up taxes. Individuals pay a flat rate of 15%, regardless of income, making it one of the most tax-friendly countries for high earners.

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WENN

Cayman Islands

0%

And finally, for those of us who dare to dream of picking up and moving for a simpler life, you deserve to know there are some places where citizens pay zero income taxes. Instead of gaining money through taxes, the Cayman Islands government does so through duties on imported goods.