PW · OceaniaPS · Asia

Palau vs Palestine: tax rates compared

Between the two, Palestine's income tax rate (15%) tops Palau's (12%) by 3pp. The 200-country average is 28%: both sit below it.

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%15%VAT10%16%Wealth Tax0%
three shared taxes, side by side
Tax PW PSDifference
Income Tax12%15%PS +3 pp
VAT10%16%PS +6 pplargest gap
Wealth Tax0%0%match

Income Tax

Income Tax, side by side
CountryRateSource
Palau12%Source: Government of Palau — Bureau of Revenue and Taxation, Wages and Salary Tax · as of 2026-07-20
Palestine15%Source: PWC Worldwide Tax Summaries — Palestinian territories (Individual, Taxes on personal income) · as of 2026-02-09
Difference−3 ppPalestine higher

VAT

VAT, side by side
CountryRateSource
Palau10%Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2023-01-01
Palestine16%Source: PWC Worldwide Tax Summaries — Palestinian territories (Corporate, Other taxes) · as of 2026-02-09
Difference−6 ppPalestine higher

Between the two, Palestine's VAT rate (16%) tops Palau's (10%) by 6pp. The 181-country average is 15%: Palau sits below it, Palestine sits above it. Palau's figure is dated 2023-01-01 and Palestine's 2026-02-09, so the two rates come from different data vintages.

Wealth Tax

Wealth Tax, side by side
CountryRateSource
Palau0%Source: Palau National Code, Title 40 (Revenue and Taxation) — official text · as of 2026-07-18
Palestine0%Source: PWC Worldwide Tax Summaries — Palestinian Territories (Individual, Other taxes) · as of 2026-02-09
Difference0 ppdisplayed rates match

There's no gap here — Palau and Palestine 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.