Palestinian territories Tax Calculator (2026)
Income tax rates and take-home pay for Palestinian territories
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 is the income tax rate in Palestinian territories?
Palestinian territories uses a progressive tax system with three income brackets. The first bracket (0 to ILS 75,000) is taxed at 5%, the second bracket (ILS 75,001 to ILS 150,000) is taxed at 10%, and income above ILS 150,000 is taxed at 15%. All residents also receive an annual exemption of ILS 36,000 before tax is calculated.
Are there social security or pension contributions I need to pay?
No, social security contributions are not applicable in Palestinian territories. Your income tax calculation focuses solely on the progressive income tax brackets and available deductions, without additional mandatory social contribution withholdings.
What deductions can I claim on my Palestinian income tax?
You can claim a transportation deduction of up to 10% of your salary, and a housing interest exemption capped at ILS 4,000 per year. If you have children in university, you may also claim a tuition exemption of up to ILS 6,000 per student, with a maximum of two students. These deductions reduce your taxable income before the progressive tax brackets are applied.
Do I need to pay taxes on inherited property or wealth?
No, inheritance is fully exempt from taxation in Palestinian territories, and there is no wealth tax or inheritance tax on property or assets you receive. This means inherited income and assets do not affect your income tax liability.
How is my tax withholding calculated as an employee?
Your employer withholds tax based on the progressive income tax brackets after applying your resident exemption (ILS 36,000) and eligible deductions like transportation and housing interest. The withholding is an administrative mechanism to collect the underlying income tax; your actual tax liability is determined by your total income, exemptions, and deductions for the year.
What happens if I'm relocating to Palestinian territories as an expat?
As a resident employee, you are subject to the same progressive income tax system with the ILS 36,000 annual resident exemption and available deductions. The tax calculator assumes full-year resident employment with standard salary income, so your tax liability will depend on your total annual earnings and which deductions you qualify for.
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