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Israel vs Bahamas
Tax Rate Comparison

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

🇮🇱 Israel
vs
🇧🇸 Bahamas
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%
No income tax maintained
No change

VAT / GST / Sales Tax

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

Corporate Tax Rate

Corporate Tax Rate
23%
23% stable; reconstruction investment incentives
No change
0%
No CIT; Pillar Two compliance via domestic top-up
No change

Capital Gains Tax

Capital Gains Tax
25–30%
25%/30% maintained
No change
0%
No CGT
No change

Social Security & Payroll

Social Security / Payroll
~19%
Post-war social spending affecting insurance levy debate
No change
~9.8%
NIB; hurricane recovery spending affecting fiscal position
No change
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.

🇧🇸 BahamasLocal Government Rates & Fees

The Bahamas' islands have local government bodies collecting fees for services, building permits, and business licences. The Bahamas famously has no income tax, no capital gains tax, no corporate income tax, and no withholding tax — making it one of the world's purest zero-tax jurisdictions. Revenue comes through VAT (introduced 2015), real property tax, customs duties, and stamp duty. As a major offshore financial centre and tourism destination, the Bahamas has faced OECD/FATF pressure on transparency and has made significant reforms.

⚠️ 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 Bahamas: Key Tax Differences (2026)

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

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

🏢 Corporate Tax: 🇧🇸 Bahamas offers a lower corporate rate (0% vs 23%), which can influence business location decisions.

📈 Capital Gains: 🇧🇸 Bahamas taxes investment gains at a lower rate (0% vs 30%), benefiting investors.

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