IL · AsiaPW · Oceania
Israel vs Palau: tax rates compared
Israel's income tax rate is 38pp higher than Palau's (50% vs 12%). The 200-country average is 28%: Israel sits above it, Palau sits below it. Israel's figure is dated 2025-01-01 and Palau's 2026-07-20, 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 | IL | PW | Difference |
|---|---|---|---|
| Income Tax | 50% | 12% | IL +38 pplargest gap |
| VAT | 18% | 10% | IL +8 pp |
| Capital Gains Tax | 25% | 0% | IL +25 pp |
| Crypto Tax | 25% | 0% | IL +25 pp |
| 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 |
| Palau | 12% | Source: Government of Palau — Bureau of Revenue and Taxation, Wages and Salary Tax · as of 2026-07-20 |
| Difference | +38 pp | Israel higher |
VAT
| Country | Rate | Source |
|---|---|---|
| Israel | 18% | Source: PWC Worldwide Tax Summaries — Israel (Corporate, Other taxes) · as of 2026-06-29 |
| Palau | 10% | Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2023-01-01 |
| Difference | +8 pp | Israel higher |
Israel's VAT rate is 8pp higher than Palau's (18% vs 10%). The 181-country average is 15%: Israel sits above it, Palau sits below it. Israel's figure is dated 2026-06-29 and Palau's 2023-01-01, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Israel | 25% | Source: PWC Worldwide Tax Summaries — Israel (Individual, Income determination) · as of 2026-06-29 |
| Palau | 0% | Source: Government of Palau — Ministry of Finance, Bureau of Revenue and Taxation · as of 2026-07-19 |
| Difference | +25 pp | Israel higher |
Israel's capital gains tax rate is 25pp higher than Palau's (25% vs 0%). The 175-country average is 10.3%: Israel sits above it, Palau sits below 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 |
| Palau | 0% | Source: Government of Palau — Ministry of Finance, Bureau of Revenue and Taxation · as of 2026-07-19 |
| Difference | +25 pp | Israel higher |
Israel's crypto tax rate is 25pp higher than Palau's (25% vs 0%). The 88-country average is 13%: Israel sits above it, Palau sits below it. Israel's figure is dated 2018-01-17 and Palau's 2026-07-19, 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 |
| Palau | 0% | Source: Palau National Code, Title 40 (Revenue and Taxation) — official text · as of 2026-07-18 |
| Difference | 0 pp | displayed rates match |
Israel's wealth tax rate is identical to Palau's — both sit at 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Corporate Tax.