Israel Tax Calculator (2026)
Income tax rates and take-home pay for Israel
Israel Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| 10% Bracket | ₪0 - ₪84,120 | 10.0% |
| 14% Bracket | ₪84,120 - ₪120,720 | 14.0% |
| 20% Bracket | ₪120,720 - ₪193,800 | 20.0% |
| 31% Bracket | ₪193,800 - ₪269,280 | 31.0% |
| 35% Bracket | ₪269,280 - ₪560,280 | 35.0% |
| 47% Bracket | ₪560,280 - ₪721,560 | 47.0% |
| 50% Bracket (includes 3% surtax) | ₪721,560+ | 50.0% |
Tax credit: ₪6,534
National Insurance
| Bracket | Income Range | Rate |
|---|---|---|
| Reduced Rate | ₪0 - ₪90,264 | 1.0% |
| Full Rate | ₪90,264 - ₪608,340 | 7.0% |
Capped at ₪37,204 per year
Health Insurance Tax
| Bracket | Income Range | Rate |
|---|---|---|
| Reduced Rate | ₪0 - ₪90,264 | 3.2% |
| Full Rate | ₪90,264 - ₪608,340 | 5.2% |
Capped at ₪29,648 per year
Key Facts
Tax Year
2025
Currency
ILS
Top Rate
50.0%
Brackets
7 brackets
Tax Credit
₪6,534
Social Contributions
2 items
Assumptions
- · Resident personal tax credit calculated as 2.25 points at ILS 242 per point per month (2.25 * 242 * 12 = 6,534).
- · Social insurance and health tax monthly thresholds (ILS 7,522 and ILS 50,695) have been annualized.
- · The 3% surtax on high income is included within the top income tax bracket (50%) as per the source bracket table.
Frequently asked questions
How much income tax will I pay in Israel if I earn ILS 200,000 per year?
Your income would be taxed across multiple brackets: 10% on the first ILS 84,120, 14% on the next ILS 36,600, 20% on the next ILS 73,080, and 31% on the remaining ILS 6,200, resulting in approximately ILS 37,500 in income tax before credits. You would also receive a resident personal tax credit of ILS 6,534, which reduces your final tax liability. This progressive system means your effective tax rate increases as your income rises.
What are National Insurance and Health Insurance Tax in Israel, and do I have to pay them?
These are mandatory employee social contributions separate from income tax. National Insurance starts at 1.04% on income up to ILS 90,264 and then 7% above that threshold, with a maximum annual contribution of ILS 37,204. Health Insurance Tax is also mandatory, charged at 3.23% up to ILS 90,264 and 5.16% above that, capped at ILS 29,648 per year. Both are calculated on your gross income and are not deductible from your taxable income.
Is there a top income tax rate in Israel, and how high does it go?
Yes, Israel has a progressive tax system with seven income tax brackets, with the highest rate reaching 50% on income above ILS 721,560. This top rate includes a 3% surtax on high earners, making it one of the higher marginal rates in the developed world. However, most workers will be taxed at lower rates depending on their income level.
Do I get any tax credits or deductions as a resident of Israel?
Residents of Israel receive a personal tax credit of ILS 6,534 per year, which directly reduces your income tax liability. This credit is non-refundable, meaning it can reduce your tax to zero but cannot result in a refund. There are no income-based deductions listed in the standard tax treatment, so your tax is calculated on your full gross income.
What's the difference between my gross salary and take-home pay in Israel?
Your take-home pay is reduced by both income tax and mandatory social contributions (National Insurance and Health Insurance Tax). For example, on a ILS 200,000 salary, you would pay roughly ILS 37,500 in income tax (after credits) plus around ILS 13,000 in social contributions, leaving you with approximately ILS 149,500 in take-home pay. The exact amount depends on your specific income level and which tax brackets apply to you.
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