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 uses a progressive three-bracket system. The first bracket applies a 5% rate on income up to ILS 75,000, the second bracket applies 10% on income between ILS 75,001 and ILS 150,000, and the third bracket applies 15% on income above ILS 150,001. These rates are applied after a resident exemption of ILS 36,000 is deducted from 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 tax liability is based solely on the income tax brackets and available deductions, which simplifies tax planning for employees and remote workers.
What deductions can I claim as a resident employee?
As a resident employee, 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 before the progressive tax brackets are applied.
Is there inheritance tax or wealth tax in Palestinian territories?
No, Palestinian territories does not impose inheritance tax or wealth tax on residents. Inheritance is fully exempt, and there are no material employee-level wealth taxes that would affect your net salary or estate planning.
How is my take-home pay calculated after taxes?
Your take-home pay is calculated by applying the three progressive income tax brackets to your salary minus the resident exemption of ILS 36,000 and applicable deductions like transportation and housing interest. No social security contributions or other major withholdings are deducted, so the result is your net salary after income tax only.
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