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United States vs Israel
Tax Rate Comparison

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

๐Ÿ‡บ๐Ÿ‡ธ United States
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
10โ€“37%
TCJA provisions extended; no sunset
No change
10โ€“50%
Post-conflict budget consolidation; rates uncertain
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0โ€“11%
No federal sales tax; state avg ~6โ€“9%
No change
18%
18% maintained or potential further adjustment
No change
Corporate Tax Rate
Corporate Tax Rate
21%
Federal flat; proposals to raise to 28% stalled
No change
23%
23% stable; reconstruction investment incentives
No change
Capital Gains Tax
Capital Gains Tax
0โ€“20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change
25โ€“30%
25%/30% maintained
No change
Social Security & Payroll
Social Security / Payroll
~15.3%
SS wage base ~$180,000 est. 2026
No change
~19%
Post-war social spending affecting insurance levy debate
No change
State, Regional & Local Taxes

๐Ÿ‡บ๐Ÿ‡ธ United States โ€” State & Local Taxes

The U.S. has 50 states each setting their own income tax (0%โ€“13.3%). California tops at 13.3%, while Texas, Florida, and Nevada levy no state income tax. NYC adds its own income tax (up to 3.876%). Sales taxes vary from 0% (Oregon) to over 11% combined. Property taxes are primarily local. Some states like Washington have introduced capital gains levies.

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 States vs Israel: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฎ๐Ÿ‡ฑ Israel has a higher top income tax rate (10โ€“37% vs 10โ€“50%). ๐Ÿ‡บ๐Ÿ‡ธ United States is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Israel has a higher consumption tax (0โ€“11% vs 18%).

๐Ÿข Corporate Tax: ๐Ÿ‡บ๐Ÿ‡ธ United States offers a lower corporate rate (21% vs 23%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡บ๐Ÿ‡ธ United States taxes investment gains at a lower rate (20% vs 30%), benefiting investors.

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