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🇺🇸 United States vs 🇵🇦 Panama

Side-by-side early retirement comparison — taxes, cost of living, healthcare, and FIRE number.

Key Takeaway

Panama is significantly cheaper than United States for retirees. With a cost of living index of 50 vs 100, your money goes 50% further in Panama. Capital gains tax is 10% in Panama vs 0% in United States. Use the calculator to see your personalized FIRE number for both countries.

Side-by-Side Comparison

🇺🇸
United States
🇵🇦
Panama
Cost of Living
Overall Index
100
50
Rent (City)
$2,500/mo
$1,200/mo
Rent (Suburb)
$1,800/mo
$700/mo
Taxes
Capital Gains (LT)
0%
10%
Top Income Tax
37%
25%
Healthcare
Est. Annual Cost
$3,000
$4,000
Public Access
No
Yes
Other
Currency
$ USD
$ USD

Tax Comparison for Retirees

🇺🇸 United States Taxes

$0–$11,92510%
$11,925–$48,47512%
$48,475–$103,35022%
$103,350–$197,30024%
$197,300–$250,52532%
$250,525–$626,35035%
$626,350+37%

🇵🇦 Panama Taxes

$0–$11,0000%
$11,000–$50,00015%
$50,000+25%

Special Tax Regimes for Expats

🇵🇦

Territorial Taxation

Foreign income completely tax-free. Only Panama-source income taxed.

Permanent📋 All residents

Calculate Your Exact FIRE Number

Enter your portfolio, spending, and retirement age to see a personalized comparison between United States and Panama — with Monte Carlo simulations and tax modeling.

🔥 Open Calculator — United States vs Panama

FAQ: United States vs Panama for Retirement

Is it cheaper to retire in Panama or United States?

Panama has a cost of living index of 50 compared to United States's 100(where US = 100). Panama is significantly cheaper than United States for retirees. Your money goes approximately 50% further in Panama.

How do taxes compare between United States and Panama?

Capital gains tax is 10% in Panama vs 0% in United States. The top income tax rate is 25% in Panama vs 37% in United States. For FIRE retirees, the effective tax rate depends on your withdrawal strategy — use our calculator for a personalized estimate.

What about healthcare in Panama vs United States?

Estimated annual healthcare costs are $4,000 in Panamavs $3,000 in United States. Panama offers public healthcare access for residents.

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