Palestinian territories Tax Calculator (2026)
Income tax rates and take-home pay for Palestinian territories
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Palestinian territories Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| First bracket | ₪0 - ₪75,000 | 5.0% |
| Second bracket | ₪75,001 - ₪150,000 | 10.0% |
| Third bracket | ₪150,001+ | 15.0% |
Personal allowance: ₪36,000
Key Facts
Tax Year
2025
Currency
ILS
Top Rate
15.0%
Brackets
3 brackets
Allowance
₪36,000
Social Contributions
0 items
Assumptions
- · Palestinian territories has no subnational income taxes; a single national system applies.
- · Social security contributions are not applicable in Palestine.
- · Resident exemptions modeled: ILS 36,000 annual resident exemption, transportation deduction (10% of salary, capped), housing interest exemption (ILS 4,000 max annually), and university tuition exemption (ILS 6,000 per student, max 2 students).
- · For a representative single employee with no dependents, transportation and housing deductions are included at typical rates; university exemption is omitted unless explicitly needed.
- · Withholding tax (WHT) is an administrative mechanism for tax collection; the underlying income tax brackets and rates are modeled here.
- · No wealth tax, inheritance tax (inheritance is exempt), VAT, or other material employee-level taxes affect net salary.
- · Model assumes full-year resident employment with standard salary income only.
Frequently asked questions
What are the income tax rates in Palestinian territories?
Palestinian territories uses a progressive tax system with three income tax brackets. The first bracket is taxed at 5% (up to ILS 75,000), the second at 10% (ILS 75,001 to ILS 150,000), and the third at 15% (ILS 150,001 and above). Most residents also benefit from an ILS 36,000 annual resident exemption that reduces taxable income.
How much will I take home as a salary in Palestinian territories?
Your take-home pay depends on your gross salary and applicable deductions. The tax calculator on this page will show you exactly how much you'll keep after income tax, transportation deductions (10% of salary), and housing interest exemptions (up to ILS 4,000 annually). There are no social security contributions or other material employee-level taxes that reduce your net pay.
Are there any deductions I can claim as an employee in Palestinian territories?
Yes, employees can benefit from several deductions including a transportation deduction of 10% of salary, a housing interest exemption (capped at ILS 4,000 per year), and a university tuition exemption (ILS 6,000 per student, up to 2 students). These deductions reduce your taxable income and lower your overall tax burden.
Do I have to pay social security or other contributions in Palestinian territories?
No, social security contributions are not applicable in Palestinian territories. Your income tax is the primary tax on employment income, and there are no wealth taxes, inheritance taxes, or VAT that directly affect your salary as an employee.
Is there a difference in tax rates between regions in Palestinian territories?
No, Palestinian territories has no subnational income taxes. A single national tax system applies across all regions, so your tax rate depends only on your income level and the three national tax brackets, not on where you live or work within the territory.
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