Israel vs United States
Compare Israel and United States corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Time of Update — Israel: 4/04/2026 · United States: 6/11/2026
Israel
United StatesBasic Corporate Tax Comparison
Time of Update — Israel: 4/04/2026 · United States: 6/11/2026Corporate Income Tax (CIT)
IsraelUnited StatesGeneral CIT Rate:
23
General CIT Rate:
Federal corporate income tax: 21%. State CIT generally ranges from 1% to 10% (although some states do not impose CIT) and is deductible for federal CIT purposes.
CIT Return Due Date:
Within five months after the end of the tax year.
CIT Return Due Date:
April 15 for calendar-year corporations (15th day of the 4th month after the tax year-end); a 6-month filing extension to October 15 is available. State income tax returns usually follow the federal due date, with a few exceptions.
CIT Payment Due Date:
If the remaining balance is paid before the end of the first month after the end of the tax year, the taxpayer should be completely exempt from any interest and linkage differences.
CIT Payment Due Date:
Tax must be fully paid by the original due date of the return (April 15 for calendar-year corporations); the final estimated instalment is due on the 15th day of the 12th month of the tax year.
CIT Estimated Payment Due Date:
Taxpayers must prepay their taxes on a monthly basis before the 15th of each month. According to a fixed percentage of the company's turnover, there are 12 months of prepayments, or based on the previous year's tax assessment, there are 10 months of payments starting from the second month of the company's tax year.
CIT Estimated Payment Due Date:
Four equal instalments of estimated tax, due by the 15th day of the 4th, 6th, 9th and 12th months of the tax year (April 15, June 15, September 15 and December 15 for calendar-year corporations).
Withholding Tax (WHT)
IsraelUnited StatesResident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
Resident Withholding Tax (Dividend/Interest/Royalty):
0/0/0
Non-Resident Withholding Tax (Dividend/Interest/Royalty):
25/0-25/25
Non-Resident Withholding Tax (Dividend/Interest/Royalty):
30/30/30
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
IsraelUnited StatesGeneral Capital Gain Tax Rate:
Capital gains are constrained by the normal corporate income tax rate.
General Capital Gain Tax Rate:
21% (aligned with the federal CIT rate for corporations)
Effective Tax Rate (ETR)
IsraelUnited StatesComposite Effective Average Tax Rate:
21.47%
Composite Effective Average Tax Rate:
22.69
Composite Effective Marginal Tax Rate:
16.63%
Composite Effective Marginal Tax Rate:
7.03
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