Middle East
Palestine tax rates 2026
A 15% corporate rate and progressive personal tax to 15%, administered by the Palestinian Authority under the Paris Protocol, with revenue clearance dependent on Israel.
Worldwide (residence-based)
Last verified Some figures indicative
The taxes
| Personal income (top) | 15%Progressive bands rising to 15% on higher income, with a generous exempt threshold. |
|---|---|
| Corporate income | 15% |
| Capital gains | Included in ordinary income. |
| VAT | 16% |
| Dividends (WHT) | 10% |
| Interest (WHT) | 10% |
| Royalties (WHT) | 10% |
| Social security (employee) | None |
| Social security (employer) | None |
| Wealth tax | None |
| Inheritance / estate | None |
| Property tax | Property tax applies in municipalities. |
| Other | VAT is set within a narrow band of the Israeli rate under the Paris Protocol. Telecoms and insurance companies are taxed at 20%. |
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.