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 income tax brackets ranging from 10% on the first ILS 84,120 up to 50% on income above ILS 721,560 (which includes a 3% surtax on the highest earners). The middle brackets progress through 14%, 20%, 31%, 35%, and 47%, so your effective tax rate increases as your income grows. You also get a personal tax credit of ILS 6,534 annually to reduce your overall tax bill.
How much do I pay in social contributions as an employee in Israel?
As an employee resident in Israel, you contribute to two main social programs: national insurance at 1.04% on your first ILS 90,264 of income 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 are capped at ILS 42,584 for national insurance and ILS 26,624 for health insurance. Together, they can add 8-12% to your total tax burden depending on your income level.
Is there a difference in taxes for expats or remote workers in Israel?
The tax calculator assumes a standard resident employee subject to full Israeli income tax and social contributions; special expatriate regimes or foreign resident status are not included in this baseline model. If you are relocating to Israel or working remotely for an international company, you should consult with a tax professional, as you may qualify for different treatment under Israeli law.
Do I get any deductions or credits besides the personal tax credit?
The baseline employee model includes only the personal tax credit of ILS 6,534 annually; deductions for mortgage interest, medical expenses, or charitable contributions are not modeled in this standard scenario. However, Israel does offer various other credits and deductions depending on your personal circumstances, such as charitable giving credits, so you may benefit from consulting a tax advisor about your specific situation.
Are there local or regional taxes in addition to the national income tax?
No, Israel does not have local or municipal income taxes, so the national income tax and social contributions shown in the calculator are your primary employment-related tax obligations. This makes the tax system relatively straightforward compared to countries with state or local income taxes on top of the national rate.
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