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Turkey vs Israel
Tax Rate Comparison

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

🇹🇷 Turkey
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
15–40%
Brackets indexed to PPI; real rates declining with inflation
No change
10–50%
Post-conflict budget consolidation; rates uncertain
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
1–20%
VAT structure maintained; potential rationalization
No change
18%
18% maintained or potential further adjustment
No change

Corporate Tax Rate

Corporate Tax Rate
25%
25% stable; capital markets development incentives
No change
23%
23% stable; reconstruction investment incentives
No change

Capital Gains Tax

Capital Gains Tax
0–40%
Inflation-adjusted gains; listed shares remain exempt
No change
25–30%
25%/30% maintained
No change

Social Security & Payroll

Social Security / Payroll
~37.5%
SGK contribution structure maintained; frequent minimum wage hikes
No change
~19%
Post-war social spending affecting insurance levy debate
No change
State, Regional & Local Taxes

🇹🇷 Turkey — Municipal & Special Provincial Taxes

Turkey's 81 provinces and 1,389 municipalities levy Real Estate Tax (Emlak Vergisi) at 0.1%–0.6% of assessed value (doubled in metro areas). Municipalities levy Environmental Cleansing Tax (çevre 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 — 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.

⚠️ 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.

Turkey vs Israel: Key Tax Differences (2026)

💰 Income Tax: 🇮🇱 Israel has a higher top income tax rate (15–40% vs 10–50%). 🇹🇷 Turkey is more favourable for high earners.

🛒 VAT/Sales Tax: Turkey has a higher consumption tax (1–20% vs 18%).

🏢 Corporate Tax: 🇮🇱 Israel offers a lower corporate rate (23% vs 25%), which can influence business location decisions.

📈 Capital Gains: 🇮🇱 Israel taxes investment gains at a lower rate (30% vs 40%), benefiting investors.

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