Israel vs Turkey
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.
๐น๐ท Turkey โ Municipal & Special Provincial Taxes
Turkey's 81 provinces and 1,389 municipalities levy Real Estate Tax (Emlak Vergisi) at 0.1%โ0.6% of assessed value (doubled in metro areas). Municipalities levy Environmental Cleansing Tax (รงevre temizlik vergisi) and Advertisement Tax. The Communication Tax and BSMV (banking and insurance transactions tax) are national. Municipalities receive shares of central tax revenues. High inflation has significantly eroded real tax burden but required frequent bracket adjustments.
Israel vs Turkey: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฎ๐ฑ Israel has a higher top income tax rate (10โ50% vs 15โ40%). ๐น๐ท Turkey is more favourable for high earners.
๐ VAT/Sales Tax: Turkey has a higher consumption tax (18% vs 1โ20%).
๐ข Corporate Tax: ๐ฎ๐ฑ Israel offers a lower corporate rate (23% vs 25%), which can influence business location decisions.
๐ Capital Gains: ๐ฎ๐ฑ Israel taxes investment gains at a lower rate (30% vs 40%), benefiting investors.