PW · OceaniaTO · Oceania
Palau vs Tonga: tax rates compared
Tonga has an income tax rate of 25%, 13pp above Palau's 12%. The 200-country average is 28%: both sit below it. Palau's figure is dated 2026-07-20 and Tonga's 2021-07-01, 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
| Tax | PW | TO | Difference |
|---|---|---|---|
| Income Tax | 12% | 25% | TO +13 pplargest gap |
| VAT | 10% | 15% | TO +5 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Palau | 12% | Source: Government of Palau — Bureau of Revenue and Taxation, Wages and Salary Tax · as of 2026-07-20 |
| Tonga | 25% | Source: Ministry of Revenue & Customs, Government of Tonga — Individual Employee · as of 2021-07-01 |
| Difference | −13 pp | Tonga higher |
VAT
| Country | Rate | Source |
|---|---|---|
| Palau | 10% | Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2023-01-01 |
| Tonga | 15% | Source: Consumption Tax Act (CAP 26.02, 2016 Revised Edition), Kingdom of Tonga · as of 2010-11-24 |
| Difference | −5 pp | Tonga higher |
Tonga has a VAT rate of 15%, 5pp above Palau's 10%. The 181-country average is 15%: Palau sits below it, Tonga matches the world average. Palau's figure is dated 2023-01-01 and Tonga's 2010-11-24, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Palau | 0% | Source: Palau National Code, Title 40 (Revenue and Taxation) — official text · as of 2026-07-18 |
| Tonga | 0% | Source: Tonga Ministry of Revenue & Customs — Tax Legislations (official index) · as of 2026-07-18 |
| Difference | 0 pp | displayed rates match |
Palau and Tonga 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, Capital Gains Tax, Crypto Tax.