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Yemen vs Israel
Tax Rate Comparison

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

🇾🇪 Yemen
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
0–15%
No change
10–50%
Post-conflict budget consolidation; rates uncertain
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
5%
No change
18%
18% maintained or potential further adjustment
No change

Corporate Tax Rate

Corporate Tax Rate
20%
No change
23%
23% stable; reconstruction investment incentives
No change

Capital Gains Tax

Capital Gains Tax
Taxed as income
No change
25–30%
25%/30% maintained
No change

Social Security & Payroll

Social Security / Payroll
6% + 9%
No change
~19%
Post-war social spending affecting insurance levy debate
No change
State, Regional & Local Taxes

🇾🇪 YemenYemen Tax System

Yemen's tax system has fragmented amid civil war (since 2015) between the Houthi movement (controlling Sanaa and the north) and the internationally recognised government (IRG, based in Aden). Each side collects taxes in their territory. Income tax nominally up to 15%. The conflict has caused one of the world's worst humanitarian crises. Oil and gas revenues (historically 70% of state income) have mostly stopped due to pipeline attacks and production collapse.

🇮🇱 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.

Yemen vs Israel: Key Tax Differences (2026)

💰 Income Tax: 🇮🇱 Israel has a higher top income tax rate (0–15% vs 10–50%). 🇾🇪 Yemen is more favourable for high earners.

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

🏢 Corporate Tax: 🇾🇪 Yemen offers a lower corporate rate (20% vs 23%), which can influence business location decisions.

📈 Capital Gains: 🇾🇪 Yemen taxes investment gains at a lower rate (15% vs 30%), benefiting investors.

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