Israel vs Eritrea
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.
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.
๐ช๐ท Eritrea โ Eritrea Tax System
Eritrea has a progressive income tax up to 38%. Uniquely, it levies a 2% 'diaspora tax' on Eritrean citizens living abroad โ a controversial policy condemned by the UN. Corporate tax is 30%. The highly centralized command economy under President Isaias Afwerki limits private sector activity. Mining (gold, copper, zinc) is the main formal revenue sector. International sanctions apply.
Israel vs Eritrea: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐ฑ Israel has a higher top income tax rate (10โ50% vs 0โ38%). ๐ช๐ท Eritrea is more favourable for high earners.
๐ VAT/Sales Tax: Israel has a higher consumption tax (18% vs 5%).
๐ข Corporate Tax: ๐ฎ๐ฑ Israel offers a lower corporate rate (23% vs 30%), which can influence business location decisions.