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United States vs Panama Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
United States37%
Panama25%Lower
Corporate Tax
United States21%Lower
Panama25%
Capital Gains
United States20%
Panama10%Lower
VAT / Sales Tax
United States0%Lower
Panama7%
| Category | United States | Panama |
|---|---|---|
| Tax System | Progressive | Territorial |
| Top Income Tax | 37% | 25% |
| Corporate Tax | 21% | 25% |
| Capital Gains | 20% | 10% |
| VAT / Sales Tax | 0% | 7% |
| Crypto Tax | Yes | No |
| Wealth Tax | No | No |
| Tax Treaties | 65 | 18 |
| Currency | USD | PAB |
The bottom line: United States vs Panama
United States and Panama are evenly matched on the four headline taxes, each coming out lower on two of them — so the better choice depends on your specific income mix. United States runs a progressive tax system, while Panama uses a territorial one. On crypto, Panama is the more favourable — it does not tax cryptocurrency gains. United States has the wider tax-treaty network (65 agreements), which can reduce withholding tax on cross-border income.
- Income tax: Panama is lower (37% vs 25%)
- Corporate tax: United States is lower (21% vs 25%)
- Capital gains tax: Panama is lower (20% vs 10%)
- VAT / sales tax: United States is lower (0% vs 7%)