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 highest marginal income tax rate in Israel is 0.5%. Your effective tax rate will be lower depending on your income level.
How many tax brackets does Israel have?
Israel has 7 income tax brackets. Income is taxed in brackets - you only pay the higher rate on income above each threshold, not on your entire income.
How is take-home pay calculated in Israel?
Take-home pay in Israel is your gross salary minus income tax, social contributions, and any applicable surcharges. Use the calculator above to see an exact breakdown for your salary.
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