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Netherlands vs Israel
Tax Rate Comparison

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

🇳🇱 Netherlands
vs
🇮🇱 Israel
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
9.32–49.5%
Box 3 reform: actual returns taxed (not deemed)
No change
10–50%
Post-conflict budget consolidation; rates uncertain
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
9–21%
Reduced 9% rate under review
No change
18%
18% maintained or potential further adjustment
No change

Corporate Tax Rate

Corporate Tax Rate
19–25.8%
Stable; Pillar Two global minimum tax applies
No change
23%
23% stable; reconstruction investment incentives
No change

Capital Gains Tax

Capital Gains Tax
~38%
Box 3 new regime: actual return basis
No change
25–30%
25%/30% maintained
No change

Social Security & Payroll

Social Security / Payroll
~28%
AOW/WW/WIA contributions ceiling raised
+0.4pp vs 2025
~19%
Post-war social spending affecting insurance levy debate
No change
State, Regional & Local Taxes

🇳🇱 NetherlandsMunicipal & Water Board Taxes

The Netherlands is a unitary state — 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.

🇮🇱 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.

⚠️ 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.

Netherlands vs Israel: Key Tax Differences (2026)

💰 Income Tax: Netherlands and Israel have similar top income tax rates (9.32–49.5% vs 10–50%).

🛒 VAT/Sales Tax: Netherlands has a higher consumption tax (9–21% vs 18%).

🏢 Corporate Tax: 🇮🇱 Israel offers a lower corporate rate (23% vs 25.8%), which can influence business location decisions.

📈 Capital Gains: 🇮🇱 Israel taxes investment gains at a lower rate (30% vs 38%), benefiting investors.

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