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Poland vs Israel
Tax Rate Comparison

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

🇵🇱 Poland
vs
🇮🇱 Israel
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
12–32%
Potential third (40%) bracket for very high earners
No change
10–50%
Post-conflict budget consolidation; rates uncertain
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
5–23%
Food VAT returning to 5% after 0% temporary measure
No change
18%
18% maintained or potential further adjustment
No change

Corporate Tax Rate

Corporate Tax Rate
9–19%
CIT stable; EU harmonization ongoing
No change
23%
23% stable; reconstruction investment incentives
No change

Capital Gains Tax

Capital Gains Tax
19%
Potential revision to capital income taxation
No change
25–30%
25%/30% maintained
No change

Social Security & Payroll

Social Security / Payroll
~34.6%
Pension system pressures; contributions stable
No change
~19%
Post-war social spending affecting insurance levy debate
No change
State, Regional & Local Taxes

🇵🇱 PolandLocal & Municipal Taxes

Poland's 16 voivodeships do not levy their own income taxes. Municipalities collect property tax (podatek od nieruchomości) within national limits. The Polish Deal (Polski Ład) reforms of 2022 significantly changed income tax. A health insurance contribution (9% of income) is no longer deductible, effectively raising the burden. The JDG (sole proprietor) regime offers flat 19% or lump-sum options.

🇮🇱 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.

Poland vs Israel: Key Tax Differences (2026)

💰 Income Tax: 🇮🇱 Israel has a higher top income tax rate (12–32% vs 10–50%). 🇵🇱 Poland is more favourable for high earners.

🛒 VAT/Sales Tax: Poland has a higher consumption tax (5–23% vs 18%).

🏢 Corporate Tax: 🇵🇱 Poland offers a lower corporate rate (19% vs 23%), which can influence business location decisions.

📈 Capital Gains: 🇵🇱 Poland taxes investment gains at a lower rate (19% vs 30%), benefiting investors.

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