Tax to GDP ratios

The tax to GDP ratio in Israel was stable at 35-36% between 2000 and 2007 and then fell sharply to 31.4% in 2009 before rising to 32.6% in 2011.   It was above was the OECD average until 2007 and subsequently fell below so that in 2010 it was 1.4 percentage points below the OECD measure of 33.8%.

Figure 1: Tax revenue as percentage of GDP 2000 to latest available data

Tax structures

The main observations for Israel are:

• Revenue from personal and corporate income taxes fell from 14.6% of GDP in 2000 to 9.8% by 2011 when it was below the OECD average of 11.3% in 2010.

• The tax ratio for Social security contributions was very stable over the period and at 6.8% of GDP in 2010, it was well below the OECD average of 9.5%.

• The tax ratio for Taxes on goods and services was also stable at 12-13% of GDP and at 12.9% in 2010, it was above the OECD average of 11.0%.

• Property tax revenues were 3.1% of GDP in 2010, more than 60% above the OECD average of 1.9%.

Figure 2: Tax revenue main headings as percentage of GDP, 2000, 2007, 2010, 2011 

• OECD averages are not available for 2011 as 5 OECD countries have not provided data for that year.
• More comparative information about OECD member countries is contained in the tables linked within the following webpages:
  • Tax revenue trends: tax ratios changes between 2007 and 2011
  • Tax revenue trends: tax ratios changes between 1965 and 2010
  • Tax structures: latest position (2010)
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