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. This is the highest bracket in a progressive tax system with 7 total brackets ranging from 10% to 50%.
How much do I pay in social contributions as an employee in Israel?
As a resident employee, you pay two main social contributions: a national insurance contribution (1.04% on the first ILS 90,264 and 7% on income between ILS 90,264 and ILS 608,340, capped at ILS 42,584) and a health insurance tax (3.23% on the first ILS 90,264 and 5.16% on the excess up to ILS 608,340, capped at ILS 26,624). These contributions are calculated on your gross income and are not tax-deductible.
What tax credits or deductions can I claim as an employee in Israel?
As a resident employee, you receive a personal tax credit of ILS 6,534 annually, which reduces your income tax liability but is not refundable. The model does not include deductions for mortgage interest, medical expenses, or charitable contributions for baseline employees, though charitable credits may be available under certain circumstances.
Does Israel have state or regional income taxes?
No, Israel does not have local or municipal income taxes. The income tax system is national, so your tax rate depends only on your income level, not your location within the country.
What is the average effective tax rate for someone earning ILS 300,000 per year?
For someone earning ILS 300,000, you would pay income tax across multiple brackets (10%, 14%, 20%, 31%, and 35%), plus national insurance and health insurance contributions totaling several percentage points. The exact effective rate depends on your specific deductions and credits, but the combined income tax and social contributions would typically represent around 35-40% of gross income at that level.
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