JP · AsiaPW · Oceania
Japan vs Palau: tax rates compared
Japan has an income tax rate of 55.9%, 43.9pp above Palau's 12%. The 200-country average is 28%: Japan sits above it, Palau sits below it. Japan's figure is dated 2025-01-01 and Palau's 2026-07-20, so the two rates come from different data vintages.
Verified data covers five of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | JP | PW | Difference |
|---|---|---|---|
| Income Tax | 55.9% | 12% | JP +43.9 pp |
| VAT | 10% | 10% | match |
| Capital Gains Tax | 20.3% | 0% | JP +20.3 pp |
| Crypto Tax | 55% | 0% | JP +55 pplargest gap |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Japan | 55.9% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Palau | 12% | Source: Government of Palau — Bureau of Revenue and Taxation, Wages and Salary Tax · as of 2026-07-20 |
| Difference | +43.9 pp | Japan higher |
VAT
| Country | Rate | Source |
|---|---|---|
| Japan | 10% | Source: PWC Worldwide Tax Summaries — Japan (Corporate, Other taxes) · as of 2026-01-13 |
| Palau | 10% | Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2023-01-01 |
| Difference | 0 pp | displayed rates match |
Japan and Palau share the same VAT rate: 10%. The 181-country average is 15%: both sit below it. Japan's figure is dated 2026-01-13 and Palau's 2023-01-01, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Japan | 20.3% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Income determination) · as of 2026-01-13 |
| Palau | 0% | Source: Government of Palau — Ministry of Finance, Bureau of Revenue and Taxation · as of 2026-07-19 |
| Difference | +20.3 pp | Japan higher |
Japan has a capital gains tax rate of 20.3%, 20.3pp above Palau's 0%. The 175-country average is 10.3%: Japan sits above it, Palau sits below it.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Japan | 55% | Source: PWC Japan — Japan Tax Update: Overview of 2026 Tax Reform Proposals (December 2025) · as of 2025-12-19 |
| Palau | 0% | Source: Government of Palau — Ministry of Finance, Bureau of Revenue and Taxation · as of 2026-07-19 |
| Difference | +55 pp | Japan higher |
Japan has a crypto tax rate of 55%, 55pp above Palau's 0%. The 88-country average is 13%: Japan sits above it, Palau sits below it. Japan's figure is dated 2025-12-19 and Palau's 2026-07-19, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Japan | 0% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Other taxes) · as of 2026-01-13 |
| Palau | 0% | Source: Palau National Code, Title 40 (Revenue and Taxation) — official text · as of 2026-07-18 |
| Difference | 0 pp | displayed rates match |
Japan and Palau share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Corporate Tax.