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Israel vs Indonesia
Tax Rate Comparison

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

🇮🇱 Israel
vs
🇮🇩 Indonesia
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
5–35%
Stable; resource wealth affecting fiscal planning
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
18%
18% maintained or potential further adjustment
No change
12%
12% maintained; digital economy compliance growing
No change

Corporate Tax Rate

Corporate Tax Rate
23%
23% stable; reconstruction investment incentives
No change
22%
Potential reduction to 20% under investment push
No change

Capital Gains Tax

Capital Gains Tax
25–30%
25%/30% maintained
No change
~2.5%
No change expected
No change

Social Security & Payroll

Social Security / Payroll
~19%
Post-war social spending affecting insurance levy debate
No change
~18–23%
Universal health coverage expansion continuing
No change
State, Regional & Local Taxes

🇮🇱 Israel — 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 — 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.

🇮🇩 Indonesia — Provincial & Regional Taxes

Indonesia's 38 provinces and 514 regencies/cities levy their own taxes. Provinces charge vehicle tax (Pajak Kendaraan Bermotor) at 1%–2%, vehicle transfer tax, and fuel tax (Pajak Bahan Bakar Kendaraan). Regencies/cities levy hotel tax (10%), restaurant tax (10%), entertainment tax (0%–75%), and land/building tax (Pajak Bumi dan Bangunan - P2). The 2022 tax reform (Harmonisasi Peraturan Perpajakan) unified many tax procedures. E-commerce platforms must now collect VAT.

⚠️ 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 Indonesia: Key Tax Differences (2026)

💰 Income Tax: 🇮🇱 Israel has a higher top income tax rate (10–50% vs 5–35%). 🇮🇩 Indonesia is more favourable for high earners.

🛒 VAT/Sales Tax: Israel has a higher consumption tax (18% vs 12%).

🏢 Corporate Tax: 🇮🇩 Indonesia offers a lower corporate rate (22% vs 23%), which can influence business location decisions.

📈 Capital Gains: 🇮🇩 Indonesia taxes investment gains at a lower rate (2.5% vs 30%), benefiting investors.

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