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
What is the top income tax rate in Israel?
The top income tax rate in Israel is 50%, which applies to taxable income above ILS 721,560 and includes a 3% surtax on top of the base 47% rate. Israel has a progressive tax system with 7 income tax brackets ranging from 10% at the lowest level to this 50% top rate.
How much do employees pay in national insurance and health insurance contributions?
Employees pay national insurance contributions of 1.04% on the first ILS 90,264 of gross income and 7% on income between ILS 90,264 and ILS 608,340, capped at ILS 42,584 annually. Additionally, health insurance tax is 3.23% on the first ILS 90,264 and 5.16% on income up to ILS 608,340, capped at ILS 26,624 annually. These contributions are not tax-deductible.
Do I get any tax credits or relief as an employee in Israel?
Yes, resident employees receive a personal tax credit of ILS 6,534 annually, calculated at a minimum of 2.25 points. This credit reduces your income tax liability, though it is not refundable, meaning it cannot result in a tax refund if it exceeds your tax owed.
Are there local or regional income taxes in Israel I need to pay?
No, Israel does not have local or municipal income taxes. Your income tax obligations are only to the national government, making the tax system uniform across the country regardless of where you live or work.
What income level puts me in the highest tax bracket?
You enter the highest tax bracket (50%) once your taxable income exceeds ILS 721,560. The bracket below that is 47% and applies to income from ILS 560,280 to ILS 721,560, so there is a significant jump at the top threshold due to the 3% surtax on very high earners.
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