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Israel vs Austria
Tax Rate Comparison

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

🇮🇱 Israel
vs
🇦🇹 Austria
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
10–50%
Post-conflict budget consolidation; rates uncertain
No change
0–55%
55% top bracket; bracket creep relief measures
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
18%
18% maintained or potential further adjustment
No change
10–20%
Standard 20% maintained
No change

Corporate Tax Rate

Corporate Tax Rate
23%
23% stable; reconstruction investment incentives
No change
21%
Reduction to 21% taking effect 2026 (from 23%)
-2.0pp vs 2025

Capital Gains Tax

Capital Gains Tax
25–30%
25%/30% maintained
No change
27.5%
KESt flat rate unchanged
No change

Social Security & Payroll

Social Security / Payroll
~19%
Post-war social spending affecting insurance levy debate
No change
~41.5%
Contribution ceiling raised; health costs increasing
+0.5pp vs 2025
State, Regional & Local Taxes

🇮🇱 IsraelMunicipal & 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.

🇦🇹 AustriaMunicipal & Church Taxes

Austria's 9 Bundesländer (states) do not set separate income tax rates — this is federal. However, municipalities levy Kommunalsteuer (municipal payroll tax) at 3% on wages paid by employers, and a Dienstgeberabgabe (employer levy). Church tax (Kirchenbeitrag) is compulsory for registered Catholics at ~1% of income. Vienna and other large cities have additional levies. Property tax (Grundsteuer) rates are set by municipalities within federal parameters.

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

Israel vs Austria: Key Tax Differences (2026)

💰 Income Tax: 🇦🇹 Austria has a higher top income tax rate (10–50% vs 0–55%). 🇮🇱 Israel is more favourable for high earners.

🛒 VAT/Sales Tax: Austria has a higher consumption tax (18% vs 10–20%).

🏢 Corporate Tax: 🇦🇹 Austria offers a lower corporate rate (21% vs 23%), which can influence business location decisions.

📈 Capital Gains: 🇦🇹 Austria taxes investment gains at a lower rate (27.5% vs 30%), benefiting investors.

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