Israel vs Netherlands
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฎ๐ฑ Israel โ 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 โ 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.
๐ณ๐ฑ Netherlands โ Municipal & Water Board Taxes
The Netherlands is a unitary state โ income tax is set nationally. Municipalities levy property taxes (OZB) and water boards (waterschappen) charge annual water management levies. The Box 3 system is under ongoing reform following Supreme Court rulings. New Box 3 reform taxes actual returns from 2027.
Israel vs Netherlands: Key Tax Differences (2026)
๐ฐ Income Tax: Israel and Netherlands have similar top income tax rates (10โ50% vs 9.32โ49.5%).
๐ VAT/Sales Tax: Netherlands has a higher consumption tax (18% vs 9โ21%).
๐ข Corporate Tax: ๐ฎ๐ฑ Israel offers a lower corporate rate (23% vs 25.8%), which can influence business location decisions.
๐ Capital Gains: ๐ฎ๐ฑ Israel taxes investment gains at a lower rate (30% vs 38%), benefiting investors.