Corporate Income Tax Rates around the World, 2016

The United States has the third highest general top marginal corporate income tax rate in the world, at 38.92 percent. Due to the recent reduction in Chad’s corporate tax rate, the U.S. rate is exceeded only by the United Arab Emirates and Puerto Rico.

The worldwide average top corporate income tax rate, across 188 countries and tax jurisdictions, is 22.5 percent. After weighting by each jurisdiction’s GDP, the average rate is 29.5 percent.

By region, Europe has the lowest average corporate tax rate, at 18.88 percent (26.22 percent, weighted by GDP). The G7 has the highest simple average, at 30.21 percent.

Larger, more industrialized countries tend to have higher corporate income tax rates than developing countries.

The worldwide average corporate tax rate has declined since 2003 from 30 percent to 22.5 percent.

Every region in the world has seen a decline in its average corporate tax rate in the past thirteen years.

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