Israel's population is heavily taxed. There are personal income taxes on gross income from employment, trade, business, dividends, and other sources, with limited deductions. Rates range from 15–50%, with the highest rate for amounts over NIS 172,800 per year. Special tax concessions are granted to residents in border settlements, new settlements, and the Negev. Taxes of salaried persons are deducted at the source; self-employed persons make advance payments in 10 installments, subject to assessment. Also levied are a value-added tax (VAT) of 17%, a purchase tax, various land taxes, and a national health insurance premium tax on a rising scale to 4.8%.
Municipalities and local and regional councils levy several taxes. There is an annual business tax on every enterprise, based on net worth, annual sales volume, number of employees, and other factors. General rates, a real estate tax (commonly based on the number of rooms and the location of the building), and water rates are paid by the tenants or occupants rather than the owners.