WorldTax Compareโ† All Comparisons

United Arab Emirates vs Israel
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates
vs
๐Ÿ‡ฎ๐Ÿ‡ฑ Israel
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0%
No personal income tax; unlikely to change short-term
No change
10โ€“50%
Post-conflict budget consolidation; rates uncertain
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
5%
5% stable; GCC coordination maintained
No change
18%
18% maintained or potential further adjustment
No change
Corporate Tax Rate
Corporate Tax Rate
9%
Corporate tax compliance and reporting maturing
No change
23%
23% stable; reconstruction investment incentives
No change
Capital Gains Tax
Capital Gains Tax
0%
No CGT; free zone benefits under review for Pillar Two
No change
25โ€“30%
25%/30% maintained
No change
Social Security & Payroll
Social Security / Payroll
~17.5%
Emiratisation targets affecting employer costs
No change
~19%
Post-war social spending affecting insurance levy debate
No change
State, Regional & Local Taxes

๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates โ€” Emirate-Level Fees & Free Zone Benefits

The UAE has no federal income tax on individuals. Emirates impose municipality fees (~5%) on commercial rents and tourism/hotel fees of 10โ€“15%. Free Zones (DIFC, ADGM, Jebel Ali) offer 0โ€“9% corporate rates for qualifying activities. Real estate transfer fees of 4% apply in Dubai. Emiratisation targets are increasing employer costs.

๐Ÿ‡ฎ๐Ÿ‡ฑ 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.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

United Arab Emirates vs Israel: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฎ๐Ÿ‡ฑ Israel has a higher top income tax rate (0% vs 10โ€“50%). ๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Israel has a higher consumption tax (5% vs 18%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates offers a lower corporate rate (9% vs 23%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates taxes investment gains at a lower rate (0% vs 30%), benefiting investors.

Related Comparisons

๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates vs ๐Ÿ‡ง๐Ÿ‡ญ BahrainTax comparison๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates vs ๐Ÿ‡ฉ๐Ÿ‡ช GermanyTax comparison๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates vs ๐Ÿ‡ฐ๐Ÿ‡ผ KuwaitTax comparison๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates vs ๐Ÿ‡ด๐Ÿ‡ฒ OmanTax comparison๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates vs ๐Ÿ‡ถ๐Ÿ‡ฆ QatarTax comparison๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates vs ๐Ÿ‡ธ๐Ÿ‡ฆ Saudi ArabiaTax comparison๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates vs ๐Ÿ‡ธ๐Ÿ‡ฌ SingaporeTax comparison๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates vs ๐Ÿ‡จ๐Ÿ‡ญ SwitzerlandTax comparison๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates vs ๐Ÿ‡ฌ๐Ÿ‡ง United KingdomTax comparison๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates vs ๐Ÿ‡บ๐Ÿ‡ธ United StatesTax comparison๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates vs ๐Ÿ‡จ๐Ÿ‡ณ ChinaTax comparison๐Ÿ‡ฆ๐Ÿ‡ช United Arab Emirates vs ๐Ÿ‡ซ๐Ÿ‡ท FranceTax comparison