PW · OceaniaGB · Europe
Palau vs United Kingdom: tax rates compared
Between the two, United Kingdom's income tax rate (45%) tops Palau's (12%) by 33pp. The 200-country average is 28%: Palau sits below it, United Kingdom sits above it. Palau's figure is dated 2026-07-20 and United Kingdom's 2025-01-01, 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 | PW | GB | Difference |
|---|---|---|---|
| Income Tax | 12% | 45% | GB +33 pplargest gap |
| VAT | 10% | 20% | GB +10 pp |
| Capital Gains Tax | 0% | 24% | GB +24 pp |
| Crypto Tax | 0% | 24% | GB +24 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 |
| United Kingdom | 45% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −33 pp | United Kingdom higher |
VAT
| Country | Rate | Source |
|---|---|---|
| Palau | 10% | Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2023-01-01 |
| United Kingdom | 20% | Source: PWC Worldwide Tax Summaries — United Kingdom (Corporate, Other taxes) · as of 2025-12-24 |
| Difference | −10 pp | United Kingdom higher |
Between the two, United Kingdom's VAT rate (20%) tops Palau's (10%) by 10pp. The 181-country average is 15%: Palau sits below it, United Kingdom sits above it. Palau's figure is dated 2023-01-01 and United Kingdom's 2025-12-24, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Palau | 0% | Source: Government of Palau — Ministry of Finance, Bureau of Revenue and Taxation · as of 2026-07-19 |
| United Kingdom | 24% | Source: GOV.UK (HMRC) — Capital Gains Tax: rates · as of 2024-10-30 |
| Difference | −24 pp | United Kingdom higher |
Between the two, United Kingdom's capital gains tax rate (24%) tops Palau's (0%) by 24pp. The 175-country average is 10.3%: Palau sits below it, United Kingdom sits above it. Palau's figure is dated 2026-07-19 and United Kingdom's 2024-10-30, so the two rates come from different data vintages.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Palau | 0% | Source: Government of Palau — Ministry of Finance, Bureau of Revenue and Taxation · as of 2026-07-19 |
| United Kingdom | 24% | Source: GOV.UK (HMRC) — Check if you need to pay tax when you sell cryptoassets · as of 2025-05-29 |
| Difference | −24 pp | United Kingdom higher |
Between the two, United Kingdom's crypto tax rate (24%) tops Palau's (0%) by 24pp. The 88-country average is 13%: Palau sits below it, United Kingdom sits above it. Palau's figure is dated 2026-07-19 and United Kingdom's 2025-05-29, 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 |
| United Kingdom | 0% | Source: PWC Worldwide Tax Summaries — United Kingdom (Individual, Other taxes) · as of 2025-12-24 |
| Difference | 0 pp | displayed rates match |
There's no gap here — Palau and United Kingdom both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it. Palau's figure is dated 2026-07-18 and United Kingdom's 2025-12-24, so the two rates come from different data vintages.
Not covered for both countries yet: Corporate Tax.