PK · AsiaPS · Asia

Pakistan vs Palestine: tax rates compared

Pakistan's income tax rate is 20pp higher than Palestine's (35% vs 15%). The 200-country average is 28%: Pakistan sits above it, Palestine sits below it.

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

At a glance

0102030405060Income15%35%Corporate15%29%VAT16%18%Wealth Tax0%
four shared taxes, side by side
Tax PK PSDifference
Income Tax35%15%PK +20 pplargest gap
Corporate Tax29%15%PK +14 pp
VAT18%16%PK +2 pp
Wealth Tax0%0%match

Income Tax

Income Tax, side by side
CountryRateSource
Pakistan35%Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Taxes on personal income) · as of 2026-01-19
Palestine15%Source: PWC Worldwide Tax Summaries — Palestinian territories (Individual, Taxes on personal income) · as of 2026-02-09
Difference+20 ppPakistan higher

Corporate Tax

Corporate Tax, side by side
CountryRateSource
Pakistan29%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Palestine15%Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01
Difference+14 ppPakistan higher

Pakistan's corporate tax rate is 14pp higher than Palestine's (29% vs 15%). The 201-country average is 22.6%: Pakistan sits above it, Palestine sits below it.

VAT

VAT, side by side
CountryRateSource
Pakistan18%Source: PWC Worldwide Tax Summaries — Pakistan (Corporate, Other taxes) · as of 2026-01-19
Palestine16%Source: PWC Worldwide Tax Summaries — Palestinian territories (Corporate, Other taxes) · as of 2026-02-09
Difference+2 ppPakistan higher

Pakistan's VAT rate is 2pp higher than Palestine's (18% vs 16%). The 181-country average is 15%: both sit above it.

Wealth Tax

Wealth Tax, side by side
CountryRateSource
Pakistan0%Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Other taxes) · as of 2026-01-19
Palestine0%Source: PWC Worldwide Tax Summaries — Palestinian Territories (Individual, Other taxes) · as of 2026-02-09
Difference0 ppdisplayed rates match

Pakistan's wealth tax rate is identical to Palestine's — both sit at 0%. The 193-country average is 0.1%: both sit below it.

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