Palestinian territories Tax Calculator (2026)

Palestinian territories Income Tax Brackets (2025)

Personal allowance: ₪36,000

What is the income tax rate in Palestinian territories?

Palestinian territories uses a progressive tax system with three income brackets. The first ILS 75,000 of income is taxed at 5%, income between ILS 75,000 and ILS 150,000 is taxed at 10%, and income above ILS 150,000 is taxed at 15%. You'll also receive a personal allowance of ILS 36,000 before tax is calculated, which reduces your taxable income.

Do I pay social security contributions in Palestinian territories?

No, there are no social security contributions in Palestinian territories as of 2025. This means your take-home pay calculation only needs to account for income tax and any deductions like the transportation deduction, rather than additional mandatory contributions.

What deductions can I claim on my Palestinian territories income tax?

If you work in the private sector, you can claim a transportation deduction of up to 10% of your annual salary. Additionally, you receive a personal allowance of ILS 36,000 that reduces your taxable income before the progressive tax brackets are applied.

How much will I take home if I earn ILS 100,000 per year?

On a salary of ILS 100,000, you would first subtract the personal allowance of ILS 36,000, leaving ILS 64,000 of taxable income. This falls entirely in the first bracket taxed at 5%, resulting in ILS 3,200 in income tax. With the transportation deduction of ILS 10,000 (10% of salary), your total tax liability would be reduced further, giving you a higher take-home pay.

Are there regional differences in tax rates across Palestinian territories?

The tax system in Palestinian territories is uniform across the territory with no regional variations. The three-bracket progressive system with rates of 5%, 10%, and 15% applies consistently, regardless of where you work or reside within Palestinian territories.

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