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 is the income tax rate in Palestinian territories?
Palestinian territories uses a progressive tax system with three income tax brackets. The rates are 5% on income up to ILS 75,000, 10% on income between ILS 75,001 and ILS 150,000, and 15% on income above ILS 150,001. Everyone also receives a resident exemption of ILS 36,000, which reduces your taxable income.
Do I need to pay social security contributions in Palestinian territories?
No, social security contributions are not applicable in Palestinian territories. Your income tax calculation is based solely on the progressive income tax brackets and available deductions and exemptions.
What deductions can I claim on my Palestinian territories income tax?
You can claim a transportation deduction equal to 10% of your salary, a housing interest exemption up to ILS 4,000 annually, and a university tuition exemption of up to ILS 6,000 per student (maximum two students). These deductions, combined with the ILS 36,000 resident exemption, can significantly reduce your taxable income.
Is there inheritance tax or wealth tax in Palestinian territories?
No, Palestinian territories does not impose inheritance tax, wealth tax, or VAT at the employee level. This means your tax burden is primarily limited to income tax based on the progressive brackets.
How is my take-home pay calculated in Palestinian territories?
Your take-home pay is calculated by applying the progressive income tax brackets to your gross salary, subtracting the ILS 36,000 resident exemption, and then applying eligible deductions like transportation (10% of salary) and housing interest (up to ILS 4,000). The resulting tax liability is then deducted from your gross salary to determine your net income.
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