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 brackets in Palestinian territories?
Palestinian territories has a progressive three-bracket income tax system. The first bracket taxes income up to ILS 75,000 at 5%, the second bracket taxes income from ILS 75,001 to ILS 150,000 at 10%, and the third bracket taxes income above ILS 150,001 at 15%. All residents also receive an ILS 36,000 annual exemption that reduces taxable income.
Are there social security contributions in Palestinian territories?
No, Palestinian territories does not have social security contributions that are deducted from employee salaries. This means your take-home pay is calculated based solely on income tax and applicable deductions like transportation and housing interest exemptions.
What deductions can I claim if I work in Palestinian territories?
You can claim a transportation deduction of up to 10% of your salary, a housing interest exemption capped at ILS 4,000 annually, and a university tuition exemption of up to ILS 6,000 per student for a maximum of two students. These deductions reduce your taxable income along with the standard ILS 36,000 resident exemption.
How much will I take home if I earn a specific salary?
Your take-home pay depends on your gross salary minus income tax calculated on your taxable income after the ILS 36,000 resident exemption and applicable deductions. Use our tax calculator above to enter your salary and see your exact net pay, including the impact of transportation and housing deductions.
Are there regional tax differences within Palestinian territories?
No, Palestinian territories operates under a single national income tax system with no subnational or regional income taxes. The tax rates and brackets apply uniformly across the territory, making it straightforward to calculate your tax liability regardless of location.
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