Indonesia vs Israel
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฎ๐ฉ Indonesia โ Provincial & Regional Taxes
Indonesia's 38 provinces and 514 regencies/cities levy their own taxes. Provinces charge vehicle tax (Pajak Kendaraan Bermotor) at 1%โ2%, vehicle transfer tax, and fuel tax (Pajak Bahan Bakar Kendaraan). Regencies/cities levy hotel tax (10%), restaurant tax (10%), entertainment tax (0%โ75%), and land/building tax (Pajak Bumi dan Bangunan - P2). The 2022 tax reform (Harmonisasi Peraturan Perpajakan) unified many tax procedures. E-commerce platforms must now collect VAT.
๐ฎ๐ฑ Israel โ Municipal & Local Authority Taxes
Israel's 255 local authorities (cities, regional councils) levy Arnona (property tax/municipal rate) on residents and businesses. Arnona rates vary significantly by local authority โ Tel Aviv and Herzliya have higher rates than peripheral areas. There is a national equalization grant system to help weaker municipalities. Employers pay National Insurance (Bituach Leumi) and health tax to the national level. The tax authority (ITA) is national; local authorities have no income tax powers.
Indonesia vs Israel: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐ฑ Israel has a higher top income tax rate (5โ35% vs 10โ50%). ๐ฎ๐ฉ Indonesia is more favourable for high earners.
๐ VAT/Sales Tax: Israel has a higher consumption tax (12% vs 18%).
๐ข Corporate Tax: ๐ฎ๐ฉ Indonesia offers a lower corporate rate (22% vs 23%), which can influence business location decisions.
๐ Capital Gains: ๐ฎ๐ฉ Indonesia taxes investment gains at a lower rate (2.5% vs 30%), benefiting investors.