Denmark 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.
๐ฉ๐ฐ Denmark โ Municipal Income Tax
Denmark's 98 municipalities set local income tax (kommuneskat) at ~22.8%โ27.8%. The national state tax adds 15% (top bracket). Combined rates including AM contribution (8% of gross) make Denmark one of the world's highest-tax nations at ~55โ56% effective top. Church tax (~0.7%) applies to members. Property value tax is nationally set.
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.
Denmark vs Israel: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฉ๐ฐ Denmark has a higher top income tax rate (~55.9% vs 10โ50%). ๐ฎ๐ฑ Israel is more favourable for high earners.
๐ VAT/Sales Tax: Denmark has a higher consumption tax (25% vs 18%).
๐ข Corporate Tax: ๐ฉ๐ฐ Denmark offers a lower corporate rate (22% vs 23%), which can influence business location decisions.
๐ Capital Gains: ๐ฎ๐ฑ Israel taxes investment gains at a lower rate (30% vs 42%), benefiting investors.