Lesotho vs Israel
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇱🇸 Lesotho — Lesotho Tax System
Lesotho is a landlocked enclave within South Africa with progressive income tax up to 35%. VAT is 15%. The country's economy is closely tied to South Africa — customs revenues from SACU (Southern African Customs Union) provide a major share of government income. Textile exports (especially to the US under AGOA) and diamond mining are key sectors. Water royalties from the Lesotho Highlands Water Project also contribute.
🇮🇱 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.
Lesotho vs Israel: Key Tax Differences (2026)
💰 Income Tax: 🇮🇱 Israel has a higher top income tax rate (0–35% vs 10–50%). 🇱🇸 Lesotho is more favourable for high earners.
🛒 VAT/Sales Tax: Israel has a higher consumption tax (15% vs 18%).
🏢 Corporate Tax: 🇮🇱 Israel offers a lower corporate rate (23% vs 25%), which can influence business location decisions.
📈 Capital Gains: 🇱🇸 Lesotho taxes investment gains at a lower rate (25% vs 30%), benefiting investors.