Israel vs Japan
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇮🇱 Israel — 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 — 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.
🇯🇵 Japan — Prefectural & Municipal Inhabitant Tax
Japan's 47 prefectures levy inhabitant tax (住民税) at a flat 10% on top of national income tax — 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.
Israel vs Japan: Key Tax Differences (2026)
💰 Income Tax: 🇮🇱 Israel has a higher top income tax rate (10–50% vs 5–45%). 🇯🇵 Japan is more favourable for high earners.
🛒 VAT/Sales Tax: Israel has a higher consumption tax (18% vs 8–10%).
🏢 Corporate Tax: 🇮🇱 Israel offers a lower corporate rate (23% vs 30.62%), which can influence business location decisions.
📈 Capital Gains: 🇯🇵 Japan taxes investment gains at a lower rate (20.315% vs 30%), benefiting investors.