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Israel vs Japan: tax rates compared
Japan has an income tax rate of 55.9%, 5.9pp above Israel's 50%. The 200-country average is 28%: both sit above it.
Verified data covers six of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | IL | JP | Difference |
|---|---|---|---|
| Income Tax | 50% | 55.9% | JP +5.9 pp |
| Corporate Tax | 23% | 29.7% | JP +6.7 pp |
| VAT | 18% | 10% | IL +8 pp |
| Capital Gains Tax | 25% | 20.3% | IL +4.7 pp |
| Crypto Tax | 25% | 55% | JP +30 pplargest gap |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Israel | 50% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Japan | 55.9% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −5.9 pp | Japan higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Israel | 23% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Japan | 29.7% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −6.7 pp | Japan higher |
Japan has a corporate tax rate of 29.7%, 6.7pp above Israel's 23%. The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Israel | 18% | Source: PWC Worldwide Tax Summaries — Israel (Corporate, Other taxes) · as of 2026-06-29 |
| Japan | 10% | Source: PWC Worldwide Tax Summaries — Japan (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | +8 pp | Israel higher |
Israel has a VAT rate of 18%, 8pp above Japan's 10%. The 181-country average is 15%: Israel sits above it, Japan sits below it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Israel | 25% | Source: PWC Worldwide Tax Summaries — Israel (Individual, Income determination) · as of 2026-06-29 |
| Japan | 20.3% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Income determination) · as of 2026-01-13 |
| Difference | +4.7 pp | Israel higher |
Israel has a capital gains tax rate of 25%, 4.7pp above Japan's 20.3%. The 175-country average is 10.3%: both sit above it.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Israel | 25% | Source: Israel Tax Authority — Income Tax Circular No. 05/2018: Taxation of Activity Using Decentralized Payment Instruments ("Virtual Currencies") · as of 2018-01-17 |
| Japan | 55% | Source: PWC Japan — Japan Tax Update: Overview of 2026 Tax Reform Proposals (December 2025) · as of 2025-12-19 |
| Difference | −30 pp | Japan higher |
Japan has a crypto tax rate of 55%, 30pp above Israel's 25%. The 88-country average is 13%: both sit above it. Israel's figure is dated 2018-01-17 and Japan's 2025-12-19, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Israel | 0% | Source: PWC Worldwide Tax Summaries — Israel (Individual, Other taxes) · as of 2026-06-29 |
| Japan | 0% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
Israel and Japan share the same wealth tax rate: 0%. The 193-country average is 0.1%: both sit below it.