Israel Tax Calculator (2026)
Income tax rates and take-home pay for Israel
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?
Israel has a progressive tax system with 7 brackets, and the top marginal rate is 50% on income above ILS 721,560, which includes a 3% surtax on high earners. Before reaching that bracket, the second-highest rate is 47% on income between ILS 560,280 and ILS 721,560. Most workers will fall into much lower brackets, with rates starting at 10% on the first ILS 84,120 of income.
How much do I pay in social contributions as an employee in Israel?
As a resident employee, you pay two types of social contributions: 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 annually) and 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 annually). These contributions are not deductible from your taxable income and are in addition to income tax.
What tax credits are available to reduce my Israeli income tax?
The main relief available is a personal tax credit of ILS 6,534 annually, which is calculated at a minimum of 2.25 tax points. This credit is non-refundable, meaning it reduces your tax liability but cannot result in a refund if it exceeds the tax you owe. The calculator assumes a baseline resident employee without special deductions for mortgage interest, medical expenses, or charitable contributions.
Are there different income tax rates by region in Israel?
No, Israel does not have regional or local income taxes. The income tax brackets and rates apply uniformly across the entire country regardless of where you live or work. This makes tax planning simpler compared to countries with state or provincial income taxes.
What happens if I earn more than ILS 721,560 per year?
If your taxable income exceeds ILS 721,560, you enter the top bracket which applies a combined rate of 50% (the standard 47% rate plus a 3% surtax on high earners). Additionally, you will continue to pay social contributions up to their annual caps (ILS 42,584 for national insurance and ILS 26,624 for health insurance tax), making your total effective tax burden quite substantial at high income levels.
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