NR · OceaniaPW · Oceania

Nauru vs Palau: tax rates compared

Between the two, Nauru's income tax rate (20%) tops Palau's (12%) by 8pp. The 200-country average is 28%: both sit below it. Nauru's figure is dated 2023-07-01 and Palau's 2026-07-20, so the two rates come from different data vintages.

Verified data covers three of the six tracked tax types for both countries; every rate below is cited to its source and dated.

At a glance

0102030405060Income12%20%VAT0%10%Wealth Tax0%
three shared taxes, side by side
Tax NR PWDifference
Income Tax20%12%NR +8 pp
VAT0%10%PW +10 pplargest gap
Wealth Tax0%0%match

Income Tax

Income Tax, side by side
CountryRateSource
Nauru20%Source: Nauru Revenue Office, Ministry of Finance — Tax Rates (1 July 2023 - 30 June 2024) · as of 2023-07-01
Palau12%Source: Government of Palau — Bureau of Revenue and Taxation, Wages and Salary Tax · as of 2026-07-20
Difference+8 ppNauru higher

VAT

VAT, side by side
CountryRateSource
Nauru0%Source: Department of Finance, Republic of Nauru — NRO administered legislation · as of 2026-07-19
Palau10%Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2023-01-01
Difference−10 ppPalau higher

Between the two, Palau's VAT rate (10%) tops Nauru's (0%) by 10pp. The 181-country average is 15%: both sit below it. Nauru's figure is dated 2026-07-19 and Palau's 2023-01-01, so the two rates come from different data vintages.

Wealth Tax

Wealth Tax, side by side
CountryRateSource
Nauru0%Source: Department of Finance, Republic of Nauru — NRO administered legislation · as of 2026-07-18
Palau0%Source: Palau National Code, Title 40 (Revenue and Taxation) — official text · as of 2026-07-18
Difference0 ppdisplayed rates match

There's no gap here — Nauru and Palau both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it.

Not covered for both countries yet: Corporate Tax, Capital Gains Tax, Crypto Tax.