Israel Tax Calculator (2026)
Income tax rates and take-home pay for Israel
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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 (47% + 3% surtax) | ₪721,560+ | 50.0% |
Tax credit: ₪6,534
National insurance contribution - resident employee
| Bracket | Income Range | Rate |
|---|---|---|
| 1.04% on first ILS 90,264 | ₪0 - ₪90,264 | 1.0% |
| 7% on excess up to ILS 608,340 | ₪90,264 - ₪608,340 | 7.0% |
Capped at ₪42,584 per year
Health insurance tax - resident employee
| Bracket | Income Range | Rate |
|---|---|---|
| 3.23% on first ILS 90,264 | ₪0 - ₪90,264 | 3.2% |
| 5.16% on excess up to ILS 608,340 | ₪90,264 - ₪608,340 | 5.2% |
Capped at ₪26,624 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
- · Model represents a resident employee subject to full Israeli income tax and social contributions.
- · Personal tax credit calculated at 2.25 points minimum (2.25 × 242 × 12 = ILS 6,534 annual credit).
- · National insurance contributions and health insurance tax modeled on monthly brackets scaled to annual basis: 1.04% on first ILS 90,264 (12 × 7,522) and 7% on amount between ILS 90,264 and ILS 608,340 (12 × 50,695).
- · Health insurance tax: 3.23% on first ILS 90,264 and 5.16% on excess up to ILS 608,340.
- · 3% surtax applies on taxable income above ILS 721,560; capital gains surtax of 2% not included as this model focuses on employment income.
- · No deductions for mortgage interest, medical expenses, or charitable contributions modeled; charitable credit available but not assumed for baseline employee.
- · Foreign resident status and special expatriate regimes excluded per default person specification.
- · Land appreciation tax and other capital gains taxes excluded as not applicable to employment income.
- · No local/municipal income taxes in Israel.
Frequently asked questions
How many income tax brackets does Israel have?
Israel has 7 income tax brackets ranging from 10% to 50%. The rates start at 10% on the first ILS 84,120 of income and progressively increase, with the highest bracket at 50% (which includes a 3% surtax) applying to income above ILS 721,560.
What are national insurance contributions and health insurance tax in Israel?
Residents pay two main social contributions: national insurance contributions at 1.04% on the first ILS 90,264 and 7% on income between ILS 90,264 and ILS 608,340, plus health insurance tax at 3.23% on the first ILS 90,264 and 5.16% on the excess. These are non-deductible contributions capped at ILS 42,584 and ILS 26,624 respectively.
Do I get any tax relief or credits in Israel?
Yes, residents receive a personal tax credit of ILS 6,534 annually, calculated at a minimum of 2.25 points. This credit is non-refundable, meaning it reduces your income tax liability but cannot result in a refund if your tax is lower than the credit amount.
Is there a significant jump in tax rates at higher income levels?
Yes, there is a notable increase at higher income brackets. The rate jumps from 47% to 50% (including a 3% surtax) on income above ILS 721,560, and the 35% bracket applies to income between ILS 269,280 and ILS 560,280, making effective tax planning important for higher earners.
Are there local or regional income taxes in addition to the national tax?
No, Israel does not have local or municipal income taxes. The national income tax brackets and social contributions represent the primary income-based levies for residents.
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