# Which countries have a 0-10% tax rate?
**URL:** https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344
**Category:** Factual Questions
**Created:** [March 22, 2003, 11:21am UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344 "2003-03-22T11:21:33Z")
**Posts on this page:** 20
**Page:** 1
### Author:  [@The\_Calculus\_of\_Logic](https://boards.straightdope.com/u/The_Calculus_of_Logic)
#### Post date: [March 22, 2003, 11:21am UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/1 "2003-03-22T11:21:33Z")
I just read on [msnbc.com](http://msnbc.com) that Qatar has no taxes due to the fact that its profits in oil make them unnecessary. I have heard that Kuwait is the same, there are no taxes.
So, in the interest of the ever present taxation debate, what all countries have no taxes. Assuming there are only 2 or 3, what countries have taxation rates below 10%?
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### Author:  [@billy](https://boards.straightdope.com/u/billy)
#### Post date: [March 23, 2003, 2:06am UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/2 "2003-03-23T02:06:33Z")
I seem to remember being taxed at 7% when I worked in Korea.
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### Author:  [@trustno1](https://boards.straightdope.com/u/trustno1)
#### Post date: [March 23, 2003, 4:33am UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/3 "2003-03-23T04:33:42Z")
If you are a major corporation…
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### Author:  [@ProjectOmega](https://boards.straightdope.com/u/ProjectOmega)
#### Post date: [March 23, 2003, 5:31am UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/4 "2003-03-23T05:31:47Z")
Well, Alberta here in Canada has a 7% tax rate, since due to their filthy, filthy oil money, they don’t have any PST.
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### Author:  [@Valgard](https://boards.straightdope.com/u/Valgard)
#### Post date: [March 23, 2003, 5:43am UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/5 "2003-03-23T05:43:57Z")
Calc -
Are you referring only to the national tax rate (like our federal tax rate), or do you care about the cumulative effect of state, sales, VAT, etc. taxes?
Valgard
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### Author:  [@Peanuthead](https://boards.straightdope.com/u/Peanuthead)
#### Post date: [March 23, 2003, 6:33am UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/6 "2003-03-23T06:33:41Z")
Last I heard there is no income tax in **Puerto Rico**.
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### Author:  [@peterW](https://boards.straightdope.com/u/peterW)
#### Post date: [March 23, 2003, 7:56am UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/7 "2003-03-23T07:56:34Z")
> [@](#):
>
> \*Originally posted by ProjectOmega \*
> \*\*Well, Alberta here in Canada has a 7% tax rate, since due to their filthy, filthy oil money, they don’t have any PST. \*\*
That’s only the goods and services tax. When you purchase some items, you are charged an extra 7% on top of the original price. I am unsure of how the government determines which items are taxed or not.
The income tax for Canada is fairly high, especially compared to the US.
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### Author:  [@Hari\_Seldon](https://boards.straightdope.com/u/Hari_Seldon)
#### Post date: [March 23, 2003, 1:07pm UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/8 "2003-03-23T13:07:26Z")
Peanuthead is well named if he really believes there is no IT in Puerto Rico. A resident of PR does not, indeed, pay US federal tax, but he sure pays island taxes and at a fairly stiff rate, I think.
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### Author:  [@newcrasher](https://boards.straightdope.com/u/newcrasher)
#### Post date: [March 23, 2003, 2:04pm UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/9 "2003-03-23T14:04:20Z")
> [@](#):
>
> \*Originally posted by trustno1 \*
> \*\*If you are a major corporation… \*\*
cite?
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### Author:  [@YWalker](https://boards.straightdope.com/u/YWalker)
#### Post date: [March 23, 2003, 4:20pm UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/10 "2003-03-23T16:20:55Z")
Alaska has no state taxes at all. It’s also because of oil royalties since the oil is state owned.
Most years the state sends out checks to all residents based on the oil money. It has been around $1000 lately.
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### Author:  [@occ](https://boards.straightdope.com/u/occ)
#### Post date: [March 23, 2003, 4:24pm UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/11 "2003-03-23T16:24:32Z")
Re: Alaska; they still pay income tax, though, on the federal level. There are plenty of states w/ no state income tax, and some with no state sales tax – but these are pittances compared with the federal income tax.
I’ve heard about the Alaska oil check thing, too…sounds pretty cool to me.
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### Author:  [@jjimm](https://boards.straightdope.com/u/jjimm)
#### Post date: [March 23, 2003, 4:31pm UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/12 "2003-03-23T16:31:19Z")
I believe ( **istara** will correct me if I’m wrong) that the United Arab Emirates have a 0% income tax rate. AFAIK, all government funding is from oil and import/export revenues.
Outside your scope, but low all the same, Hong Kong is a flat 15%. And they have “socialized medicine”, too.
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### Author:  [@improv\_junkie](https://boards.straightdope.com/u/improv_junkie)
#### Post date: [March 23, 2003, 10:01pm UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/13 "2003-03-23T22:01:52Z")
> [@](#):
>
> \*Originally posted by peterW \*
> \*\*The income tax for Canada is fairly high, especially compared to the US. \*\*
15% in Ontario… sinful, if you ask me.
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### Author:  [@peterW](https://boards.straightdope.com/u/peterW)
#### Post date: [March 24, 2003, 1:27am UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/14 "2003-03-24T01:27:21Z")
Here is the link for income tax rates in Canada.
[Canadian 2003 Personal Income Tax](http://www.ccra-adrc.gc.ca/tax/individuals/faq/2003_rate-e.html)
You have to pay both a federal and provincial income tax.
The highest rate for federal is 29% if income \> $104,648.
The highest provincial tax belongs to Newfoundland at ~18%.
So if you make over $104,648 and live in Newfoundland, the government will take 47% of your income.
Moral of the story, if you are looking for a country with a low income tax, do not move to Canada.
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### Author:  [@peterW](https://boards.straightdope.com/u/peterW)
#### Post date: [March 24, 2003, 1:39am UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/15 "2003-03-24T01:39:22Z")
I misread the chart for the taxes so it won’t be as bad as I had first mentioned. If my calculations are correct the total federal tax percentage should be ~23.8% for income \> $104,648.
The provincial taxes will be less than the maximum percentages as well.
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### Author:  [@Blackeyes](https://boards.straightdope.com/u/Blackeyes)
#### Post date: [March 24, 2003, 1:56am UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/16 "2003-03-24T01:56:15Z")
America doesn’t have a federal income tax. Not legally…
😉 😛
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### Author:  [@kpm](https://boards.straightdope.com/u/kpm)
#### Post date: [March 27, 2003, 9:03pm UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/17 "2003-03-27T21:03:11Z")
Alaska doesn’t have any type of state taxes at all:
No sales tax
No income tax
No property tax
Other states that don’t have income taxes normally have lots of other taxes - especially high sales taxes.
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### Author:  [@fiddlesticks](https://boards.straightdope.com/u/fiddlesticks)
#### Post date: [March 27, 2003, 9:36pm UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/18 "2003-03-27T21:36:50Z")
Monaco is quite famous for not having any income taxes. I believe they get all their money from the casinos…sorta like Nevada.
[http://www.monaco-usa.com/Taxes.htm](http://www.monaco-usa.com/Taxes.htm)
That page also answers the question “How do I become a Monegasque” in case you’re interested.
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### Author:  [@cainxinth](https://boards.straightdope.com/u/cainxinth)
#### Post date: [March 27, 2003, 10:54pm UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/19 "2003-03-27T22:54:31Z")
All the Middle East states with big oil money and small populations have little to no income tax. Saudi Arabia, which doesn’t permit censuses but is very sparsely populated, has a 2.5% personal income tax rate. The lowest earning sector of Kuwait’s population pays 5%. The lowest sector in Oman pays nothing in taxes, and the richest only pays 7.5%. The range in Qatar is 0 to 35%, which is about the same as Tunisia’s tax scheme. Bahrain’s has no personal income tax at all.
[cite](http://www.infoprod.co.il/index.htm)
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### Author:  [@Popsicle](https://boards.straightdope.com/u/Popsicle)
#### Post date: [March 27, 2003, 11:34pm UTC](https://boards.straightdope.com/t/which-countries-have-a-0-10-tax-rate/163344/20 "2003-03-27T23:34:05Z")
> [@](#):
>
> \*Originally posted by jjimm \*
> \*\*Outside your scope, but low all the same, Hong Kong is a flat 15%. And they have “socialized medicine”, too. \*\*
Actually, many Hong Kong workers don’t pay tax on their salaries, and some can pay as little as two percent on chargeable income. Check out the Salaries Tax and Personal Assessment section at the Inland Revenue Department’s web site, which lists [tax rates for the last seven years](http://www.info.gov.hk/ird/eng/tax/ind_tra.htm).
Note that these rates apply to income above allowances and deductions. These include the first HK$108,000 of a year’s salary going tax-free as a basic allowance for unmarried people. (Link: [Allowances](http://www.info.gov.hk/ird/eng/tax/ind_all.htm).)