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Israel vs Chile
Tax Rate Comparison

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

🇮🇱 Israel
vs
🇨🇱 Chile
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
0–40%
Rates stable; Boric administration reforms settling
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
18%
18% maintained or potential further adjustment
No change
19%
19% flat; no change
No change

Corporate Tax Rate

Corporate Tax Rate
23%
23% stable; reconstruction investment incentives
No change
27%
Large corp 27% stable; Pillar Two for MNCs
No change

Capital Gains Tax

Capital Gains Tax
25–30%
25%/30% maintained
No change
0–22%
No major reform expected
No change

Social Security & Payroll

Social Security / Payroll
~19%
Post-war social spending affecting insurance levy debate
No change
~35%
Pension reform adding 6% employer contribution gradually
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.

🇨🇱 ChileMunicipal & Regional Taxes

Chile's 16 regions and 346 municipalities do not levy separate income taxes. Municipalities charge patente municipal (business licence fee) based on capital, typically 0.25%–0.5% of net equity/year, capped at ~$8,000 USD. Property tax (contribuciones de bienes raíces) is national in structure but rates vary 0.075%–1.2% by property type. The SII (tax authority) is national. The Royalty Minero (mining royalty) is a significant revenue source in copper-producing regions.

⚠️ 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 Chile: Key Tax Differences (2026)

💰 Income Tax: 🇮🇱 Israel has a higher top income tax rate (10–50% vs 0–40%). 🇨🇱 Chile is more favourable for high earners.

🛒 VAT/Sales Tax: Chile has a higher consumption tax (18% vs 19%).

🏢 Corporate Tax: 🇮🇱 Israel offers a lower corporate rate (23% vs 27%), which can influence business location decisions.

📈 Capital Gains: 🇨🇱 Chile taxes investment gains at a lower rate (22% vs 30%), benefiting investors.

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