How is Israeli income tax calculated?

Israel uses seven progressive bands with no tax-free threshold — tax starts at 10% on the first shekel, then rises through 14%, 20%, 31%, 35% and 47%, with a 3% surtax (mas yesef) lifting the top rate to 50% on income above ILS 721,560 (2024–25). Each band applies only to the income within its range.

Why is there no tax-free threshold in Israel?

Israel taxes income from the first shekel at 10%, but instead grants tax credit points (nekudot zikui) that reduce the computed tax directly. A single resident typically gets 2.25 points, worth about ILS 6,500 a year, which can wipe out the tax on a modest salary.

What is the difference between effective and marginal tax rate?

Your effective rate is total income tax divided by income — your true average. Your marginal rate is the rate on your next shekel, set by the highest band you reach. On ILS 200,000 in 2025 the marginal rate is 31% but the effective rate is only about 15% because the lower bands use lower rates.

Does Israel have regional or municipal income tax?

No. Personal income tax in Israel is national only, collected by the Israel Tax Authority (Rashut HaMisim). Cities and districts do not levy their own income tax, so your national tax plus Bituach Leumi is the full payroll picture and this calculator has no region selector.

Can I use this for previous years?

Yes. Use the year selector to view 2023, 2024, 2025 or 2026 rules — 2026 is the latest. The 2024, 2025 and 2026 brackets are identical because the 2025 indexation was frozen and carried into 2026; 2023 uses slightly lower bands, so the same income pays a little more tax in 2023. The 2026 thresholds will be refreshed when the Israel Tax Authority publishes the official indexed figures.

What is not included in this estimate?

This tool models national income tax plus a flat-rate Bituach Leumi. It does not subtract tax credit points, pension or training-fund (keren hishtalmut) reliefs, married/child/new-immigrant points, or model capital gains, dividends and self-employed rates. Consult the Israel Tax Authority or a licensed accountant for exact figures.

Israel Income Tax Calculator

Enter your annual income to estimate your Israeli income tax, Bituach Leumi contributions and take-home pay, with the progressive bands for multiple years.

Updated June 2026

Files never leave your browser

Tax Calculator

Israel — 2026 Tax Year

2026 Tax Year

Tax Year

Select the tax year to view applicable rules and rates

This is an estimate. Consult a tax professional for accurate calculations.

Annual Gross Income (₪ ILS)

Filing Status

Enter your income to calculate

Fill in your gross income and filing status, then calculate to see your tax breakdown.

How to use Israel Income Tax Calculator

This Israel income tax calculator estimates your national income tax and combined Bituach Leumi (National Insurance + health) contributions based on your annual income and the tax year you select. Choose between 2023, 2024, 2025 and 2026 — 2026 is the latest. The 2024, 2025 and 2026 brackets are identical because the 2025 indexation was frozen and carried into 2026, while 2023 uses slightly lower bands. Unlike many countries, Israel has no tax-free threshold: tax starts at 10% from your first shekel, and residents instead receive tax credit points (nekudot zikui) that reduce the bill. The calculator shows your effective rate, marginal rate, a band-by-band breakdown and your estimated take-home pay.

Select your tax year (2023, 2024, 2025, or 2026) from the dropdown.
Enter your annual gross income in shekels (salary before tax).
Keep the filing status as Individual — Israel taxes individuals, not couples jointly.
Click Calculate to see your income tax, Bituach Leumi contributions, effective rate and marginal rate.
Review the band-by-band breakdown and remember credit points (nekudot zikui) further reduce the tax shown.

Your data never leaves your device — 100% private processing.

How Israeli tax brackets work

Israel uses a progressive system with seven bands, but there is no tax-free threshold — the first shekel is taxed at 10%. Each band applies only to the income within its range. On ILS 200,000 in 2025 you pay 10% on the first ILS 84,120 (ILS 8,412), 14% on the next ILS 36,600 (ILS 5,124), 20% on the next ILS 73,080 (ILS 14,616) and 31% on the remaining ILS 6,200 (ILS 1,922) — about ILS 30,074 in income tax before credit points, an effective rate near 15% well below the 31% marginal rate.

2024–2025 annual income tax brackets (Israel Tax Authority)
Annual Income (ILS)	Tax Rate	Band
0 – 84,120	10%	First ILS 84,120 (no tax-free threshold)
84,120 – 120,720	14%	Next ILS 36,600
120,720 – 193,800	20%	Next ILS 73,080
193,800 – 269,280	31%	Next ILS 75,480
269,280 – 560,280	35%	Next ILS 291,000
560,280 – 721,560	47%	Next ILS 161,280
Over 721,560	50%	47% + 3% surtax (mas yesef)

Tax credit points (nekudot zikui)

Instead of a tax-free threshold, Israel grants tax credit points that are subtracted directly from your computed tax, not from your income. Each point is worth roughly ILS 2,820–2,904 per year, and a single resident typically receives 2.25 points — about ILS 6,500 of tax relief. Extra points apply for women, children, single parents and new immigrants (olim). Because this calculator works from the brackets only, it does not subtract credit points, so it slightly overstates tax for lower earners — subtract your own credit-point value to refine the estimate.

Bituach Leumi: National Insurance and health

On top of income tax, employees pay National Insurance and health insurance to Bituach Leumi. The real rate is progressive — roughly 4.27% on the first ILS 7,522 of monthly income and about 12.16% above that, up to a monthly ceiling (ILS 50,695 in 2025). For a simple estimate this tool applies a flat 12% combined rate capped at the annual ceiling and subtracts it in your take-home figure, which slightly overstates contributions for lower incomes.

No regional income tax in Israel

Unlike the United States, Israeli cities and districts do not levy a personal income tax. All income tax is national and collected by the Israel Tax Authority (Rashut HaMisim). That means your national income tax plus Bituach Leumi is the full payroll picture, which is why this calculator has no region selector.

Worked examples

Individual, ILS 100K income, 2025

Inputs: ILS 100,000 income

Result: ~ILS 10,635 income tax · 10.6% effective · 14% marginal (before credit points)

Individual, ILS 200K income, 2025

Inputs: ILS 200,000 income

Result: ~ILS 30,074 income tax · ILS 24,000 Bituach Leumi · 15% effective · 31% marginal

Individual, ILS 300K income, 2025

Inputs: ILS 300,000 income

Result: ~ILS 62,303 income tax · 20.8% effective · 35% marginal (before credit points)

Glossary

Tax credit point (nekudat zikui): A fixed amount subtracted directly from computed tax; Israel uses these instead of a tax-free threshold.
Bituach Leumi: Israel’s National Insurance Institute; employees pay combined National Insurance and health contributions to it.
Mas yesef (surtax): A 3% surtax on annual income above ILS 721,560 (2024–25) that lifts the top rate to 50%.
Effective tax rate: Total tax owed divided by total income — your true average tax rate.
Marginal tax rate: The tax rate applied to your next shekel of income, set by the highest band you reach.
Israel Tax Authority: Rashut HaMisim — the national authority that administers income tax in Israel.
Contribution ceiling: The maximum monthly income on which Bituach Leumi is charged (ILS 50,695/month in 2025).

Related Finance

Philippines Income Tax Calculator

Calculate Philippine income tax under the TRAIN law plus SSS and PhilHealth for 2023 to 2026. See your effective rate, marginal rate and bracket breakdown.

Taiwan Income Tax Calculator

Calculate Taiwan income tax, Labor Insurance and National Health Insurance for 2023 to 2026. See your effective rate, marginal rate and full bracket breakdown.

Pakistan Income Tax Calculator

Calculate Pakistan salaried income tax (FBR slabs) for tax years 2023 to 2026. See your effective rate, marginal rate and full slab breakdown.

Brunei Income Tax Calculator

Brunei has no personal income tax on salaries for 2023-2026. Confirm 0% tax and estimate take-home pay in BND with TAP/SCP contribution context.

Bangladesh Income Tax Calculator

Calculate Bangladesh income tax (NBR slabs) for assessment years 2023-24 to 2026-27. See your effective rate, marginal rate and full slab breakdown.

Mortgage Calculator

Calculate your monthly mortgage payment, total interest, and see a full amortization schedule. Free online mortgage calculator.

Explore all Finance.