Israel vs United States
Corporate Tax Comparison
Time of Update: Israel: 4/04/2026 / United States: 4/04/2026
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.
Israel vs United States Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Israel
United States
General CIT Rate:
23
General CIT Rate:
Federal corporate income tax: 21%. State CIT ranges from 1% to 10% (although some states do not impose CIT) and is deductible from the federal CIT.
CIT Return Due Date:
Within five months after the end of the tax year.
CIT Return Due Date:
1. April 15th (Federal income tax);
2. Income tax is usually due on the same date as federal income tax, but there are a few cases where the dates are different.
2. Income tax is usually due on the same date as federal income tax, but there are a few cases where the dates are different.
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:
As of 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:
Throughout the year, four equal instalments of estimated tax should be paid on the 15th day of the fourth, sixth, and ninth months of the tax year, and on the 15th day of the first month of the following year (April 15, June 15, September 15, and January 15).
Withholding Tax (WHT)
Israel
United States
Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
Resident Withholding Tax (Dividend/Interest/Royalty):
0/10/3
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/0-25/25
None-Resident Withholding Tax (Dividend/Interest/Royalty):
30/30/30
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Israel
United States
General 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)
Israel
United States
Composite 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
