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Israel vs Bhutan
Tax Rate Comparison

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

🇮🇱 Israel
vs
🇧🇹 Bhutan
Tax Year:

💰 Personal Income Tax Calculator

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

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
10–50%
Post-conflict budget consolidation; rates uncertain
No change
0–25%
25% top; crypto mining revenues adding to national income
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
18%
18% maintained or potential further adjustment
No change
0%
No VAT; GST consideration ongoing
No change

Corporate Tax Rate

Corporate Tax Rate
23%
23% stable; reconstruction investment incentives
No change
30%
30% CIT; digital economy and hydropower growing
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
~10%
NPPF; pension adequacy improving
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.

🇧🇹 BhutanDzongkhag & Thromde Taxes

Bhutan's 20 dzongkhags (districts) and thromdes (municipalities) levy local land tax, cattle tax, and local fees. Bhutan is a constitutional monarchy pursuing Gross National Happiness over GDP. Corporate and business income taxes are primary revenue sources; personal income tax is minimal for most citizens given the country's structure. Bhutan has major hydropower export revenues from India and has become notable for state-enterprise cryptocurrency mining. The country is transitioning toward more market-oriented development with LDC graduation aspirations.

⚠️ 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 Bhutan: Key Tax Differences (2026)

💰 Income Tax: 🇮🇱 Israel has a higher top income tax rate (10–50% vs 0–25%). 🇧🇹 Bhutan is more favourable for high earners.

🛒 VAT/Sales Tax: Israel has a higher consumption tax (18% vs 0%).

🏢 Corporate Tax: 🇮🇱 Israel offers a lower corporate rate (23% vs 30%), which can influence business location decisions.

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

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