World tax rate

VAT, GST, and sales tax rates for 100+ countries. Standard rates, reduced tiers, and all 50 US states. Updated March 2026.

🌍 International Updated Mar 2026

Tax Rates

World tax rate overview

Countries covered

—

VAT · GST · Sales tax

⌕

Countries by standard rate

Country ↑

Type ↑

Reduced ↑

Standard ↓

No countries match your search.

Source: OECD Consumption Tax Trends 2024 · EU Commission VAT rates database · Tax Foundation State Sales Tax Rates 2025 · official government sources.
Note: Standard rates shown. Click What's included per country to expand reduced-rate categories. US state rates exclude local taxes.
Last updated: March 2026. Spot a change? Let us know →

How consumption taxes work

Three letters. Hundreds of rates.
Here's what separates them.

Most countries tax goods and services at the point of sale, but they go about it very differently. VAT (value-added tax), GST (goods and services tax), and sales tax are all consumption taxes, but they collect the money in different ways and from different points in the supply chain.

VAT and GST work almost identically. Tax is collected at every stage of production, but businesses reclaim what they've paid along the way. The end consumer bears the full cost, but the revenue is collected incrementally, which makes fraud harder and compliance more predictable. Most countries outside the United States use one of these two systems.

Sales tax, used primarily in the US, is simpler in theory: tax is added only at the final sale. But because rates are set at the state level (and sometimes city level), a single transaction can involve layering multiple jurisdictions. There's no federal rate, and no two states agree on exactly what's taxable.

The standard rate is the headline figure, but it rarely tells the whole story. Most countries run parallel reduced rates for essentials: food, medicine, books, children's clothing. Some run three or four tiers. Understanding which rate applies to your product or service matters as much as knowing the headline number.

VAT / GST tax collected at each stage, reclaimed up the chain

Sales tax added at final sale only · state-level rate

Reduced rate lower % for essentials · varies by category

Zero rate 0% charged, but input tax still reclaimable

Common questions

Zero-rated means the sale is taxed at 0%. The supplier charges no tax, but can still reclaim any VAT they paid on their inputs. Common for exports and basic foods in many countries.

Exempt means the sale falls outside the VAT system entirely. No tax is charged, but the supplier also can't reclaim their input tax. Financial services, insurance, and healthcare are often exempt. The distinction matters a lot to businesses managing their tax position.

A federal sales tax was never adopted. Historically, states guarded their taxing authority closely and there was no political consensus for a national system. When other countries were building VAT frameworks in the 1960s and 70s, the US opted out.

Today, 45 states plus Washington D.C. levy a sales tax, five states (Alaska, Delaware, Montana, New Hampshire, Oregon) charge nothing at all, and thousands of local jurisdictions add their own layer on top. The combined rate can exceed 11% in some cities.

A small number of jurisdictions levy no general consumption tax. Hong Kong is the most notable major economy; it relies on income and profits taxes instead. The Cayman Islands, Bahamas, and a handful of other territories also have no VAT or GST.

This is increasingly rare. The IMF has long recommended consumption taxes as a stable revenue source, and many hold-outs have adopted VAT or GST in recent decades. The trend globally is toward broader, not narrower, consumption tax coverage.

Reduced rates are a political decision as much as a technical one. Governments typically apply them to goods considered essential (food, medicine, children's items) on the argument that taxing necessities hits lower-income households hardest.

In practice, the categories get complicated fast. France's 5.5% rate applies to most food but not hot prepared meals. The UK zero-rates plain biscuits but taxes chocolate-covered ones at 20%. These edge cases accumulate into some of the most contested areas of tax law in any jurisdiction.

Not necessarily. Revenue depends on the rate, the base (what's actually taxed), and compliance. A country with a 25% rate but large exemptions and significant evasion can collect less than one with a 15% rate applied broadly and enforced well.

The OECD uses a metric called the VAT Revenue Ratio to measure how efficiently countries collect against their theoretical maximum. Some high-rate EU countries score lower than expected; New Zealand, with a clean 15% GST and almost no exemptions, consistently ranks among the most efficient in the world.

Standard rates are relatively stable. Most countries hold them for years at a time. Reduced rates and category definitions change more frequently, often as part of annual budget cycles.

Temporary changes do happen, particularly during economic shocks. Several EU countries cut rates on energy and food during the 2022 cost-of-living crisis. The UK temporarily cut hospitality VAT to 5% during the pandemic. This tool is updated to reflect rates current as of March 2026, incorporating all known changes effective since January 2026.