IL · AsiaPS · Asia
Israel vs Palestine: tax rates compared
Between the two, Israel's income tax rate (50%) tops Palestine's (15%) by 35pp. The 200-country average is 28%: Israel sits above it, Palestine sits below it. Israel's figure is dated 2025-01-01 and Palestine's 2026-02-09, so the two rates come from different data vintages.
Verified data covers four of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | IL | PS | Difference |
|---|---|---|---|
| Income Tax | 50% | 15% | IL +35 pplargest gap |
| Corporate Tax | 23% | 15% | IL +8 pp |
| VAT | 18% | 16% | IL +2 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 |
| Palestine | 15% | Source: PWC Worldwide Tax Summaries — Palestinian territories (Individual, Taxes on personal income) · as of 2026-02-09 |
| Difference | +35 pp | Israel higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Israel | 23% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Palestine | 15% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +8 pp | Israel higher |
Between the two, Israel's corporate tax rate (23%) tops Palestine's (15%) by 8pp. The 201-country average is 22.6%: Israel sits above it, Palestine sits below it.
VAT
| Country | Rate | Source |
|---|---|---|
| Israel | 18% | Source: PWC Worldwide Tax Summaries — Israel (Corporate, Other taxes) · as of 2026-06-29 |
| Palestine | 16% | Source: PWC Worldwide Tax Summaries — Palestinian territories (Corporate, Other taxes) · as of 2026-02-09 |
| Difference | +2 pp | Israel higher |
Between the two, Israel's VAT rate (18%) tops Palestine's (16%) by 2pp. The 181-country average is 15%: both sit above it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Israel | 0% | Source: PWC Worldwide Tax Summaries — Israel (Individual, Other taxes) · as of 2026-06-29 |
| Palestine | 0% | Source: PWC Worldwide Tax Summaries — Palestinian Territories (Individual, Other taxes) · as of 2026-02-09 |
| Difference | 0 pp | displayed rates match |
There's no gap here — Israel and Palestine both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Capital Gains Tax, Crypto Tax.