IQ · AsiaIL · Asia
Iraq vs Israel: tax rates compared
Israel has an income tax rate of 50%, 35pp above Iraq's 15%. The 200-country average is 28%: Iraq sits below it, Israel sits above it. Iraq's figure is dated 2026-06-24 and Israel's 2025-01-01, so the two rates come from different data vintages.
Verified data covers five of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | IQ | IL | Difference |
|---|---|---|---|
| Income Tax | 15% | 50% | IL +35 pplargest gap |
| Corporate Tax | 15% | 23% | IL +8 pp |
| VAT | 0% | 18% | IL +18 pp |
| Capital Gains Tax | 0% | 25% | IL +25 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Iraq | 15% | Source: PWC Worldwide Tax Summaries — Iraq (Individual, Taxes on personal income) · as of 2026-06-24 |
| Israel | 50% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −35 pp | Israel higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Iraq | 15% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Israel | 23% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −8 pp | Israel higher |
Israel has a corporate tax rate of 23%, 8pp above Iraq's 15%. The 201-country average is 22.6%: Iraq sits below it, Israel sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Iraq | 0% | Source: PWC Worldwide Tax Summaries — Iraq (Corporate, Other taxes) · as of 2026-06-24 |
| Israel | 18% | Source: PWC Worldwide Tax Summaries — Israel (Corporate, Other taxes) · as of 2026-06-29 |
| Difference | −18 pp | Israel higher |
Israel has a VAT rate of 18%, 18pp above Iraq's 0%. The 181-country average is 15%: Iraq sits below it, Israel sits above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Iraq | 0% | Source: EY Worldwide Personal Tax and Immigration Guide 2025-26 — Iraq · as of 2025-10-01 |
| Israel | 25% | Source: PWC Worldwide Tax Summaries — Israel (Individual, Income determination) · as of 2026-06-29 |
| Difference | −25 pp | Israel higher |
Israel has a capital gains tax rate of 25%, 25pp above Iraq's 0%. The 175-country average is 10.3%: Iraq sits below it, Israel sits above it. Iraq's figure is dated 2025-10-01 and Israel's 2026-06-29, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Iraq | 0% | Source: PWC Worldwide Tax Summaries — Iraq (Individual, Other taxes) · as of 2026-06-24 |
| Israel | 0% | Source: PWC Worldwide Tax Summaries — Israel (Individual, Other taxes) · as of 2026-06-29 |
| Difference | 0 pp | displayed rates match |
Iraq and Israel share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.