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 are the income tax brackets in Israel?
Israel has 7 progressive income tax brackets ranging from 10% on the first ILS 84,120 to 50% on income above ILS 721,560 (which includes a 3% surtax on high earners). The brackets gradually increase through 14%, 20%, 31%, 35%, and 47%, so your tax rate depends on your total income level. A personal tax credit of ILS 6,534 annually helps reduce your overall tax liability.
How much do I pay in social contributions as an employee in Israel?
As a resident employee, you pay two main social contributions on your gross income: national insurance at 1.04% on the first ILS 90,264 and 7% on earnings 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 up to ILS 608,340. These contributions are not tax-deductible and have combined maximum annual caps of around ILS 69,208. Together, they can add 8-12% to your effective tax burden depending on your income level.
Is there a way to reduce my Israeli income tax as an employee?
Yes, you receive a non-refundable personal tax credit of ILS 6,534 annually, which directly reduces your income tax liability. Beyond this standard credit, the calculator assumes a baseline resident employee without additional deductions for mortgage interest, medical expenses, or charitable contributions, though some of these may be available under specific circumstances. It's worth consulting a local tax advisor to see if you qualify for any additional credits or deductions based on your personal situation.
Do different regions in Israel have different tax rates?
No, Israel does not have regional or municipal income taxes. The income tax rates and social contributions are uniform across the entire country, so your tax burden is the same whether you live in Tel Aviv, Jerusalem, or any other city. This simplifies tax planning for both residents and remote workers relocating to Israel.
How much take-home pay will I have after taxes and contributions?
Your take-home pay depends on your gross income, as it's reduced by both income tax (progressive from 10% to 50%) and social contributions (roughly 8-12% combined). For example, someone earning ILS 150,000 annually would pay income tax using the 10%, 14%, and 20% brackets, plus national insurance and health insurance contributions, resulting in a significantly lower net amount. Use the take-home pay calculator on this page to see your specific deductions based on your income level.
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