Israel Income Tax Calculator

Find out how much your salary is after tax so you can have a better idea of what to expect when planning your budget
Updated for 2021 Tax Year
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CALCULATING

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Results

Salary Before Tax₪ 0

Salary After Tax₪ 0

Total Tax₪ 0

Average Tax Rate0 %

₪ = Israeli New Shekel

0%
Net Pay
0%
Total Tax
Detailed Breakdown

CALCULATING

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Salary Before Tax₪ 0

Income Tax₪ 0

National Insurance₪ 0

Health Insurance₪ 0

Personal Tax Credit₪ 0

Total Tax₪ 0

Salary After Tax₪ 0

Total Deductions₪ 0

Average Tax Rate0 %

Summary

Enter your salary into the calculator above to find out how taxes in Israel affect your income. You'll then get your estimated take home pay, a detailed breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to expect when planning your budget.

If you make 0 a year living in Israel, we estimate that you'll be taxed 0. In almost all cases, your employer will automatically withhold this amount from your paychecks and thus your take home pay should be around 0 per year or 0 per month. Lastly, your average tax rate ends up being around 0 %. Note that this estimate is based only on the most common standard deductions and credits, if any. If you are eligible for additional deductions and credits, your taxes may be lower.

What is the income tax rate in Israel?

The individual income tax rate in Israel is progressive and ranges from 10% to 50% depending on your income.

Details about income tax in Israel

The income tax system in Israel is a progressive tax system. This means that your income is split into multiple brackets where lower brackets are taxed at lower rates and higher brackets are taxed at higher rates. Tax rates range from 10% to 50%.

For 2021 tax year

Taxable Income (ILS)Tax Rate
First 75,48010%
From 75,480 to 108,36014%
From 108,360 to 173,88020%
From 173,880 to 241,68031%
From 241,680 to 502,92035%
From 502,920 to 647,64047%
From 647,640 onwards50%

There are no standard deductions with a standard fixed amount that exists in all scenarios. However, a personal allowance does exist in the form of a tax credit that varies a little bit according to your filing status. This tax credit helps to directly lower your income tax.

Non-residents are subject to the same tax brackets and rates, but are not eligible for any personal tax credits.

Under certain circumstances, individual non-residents may be conferred special statuses. One of which is the "Foreign Expert" status. One benefit of this special status, among others, is the ability to deduct additional living expenses so that your taxable income is lower. Another is the "Approved Specialist" status. This status includes the benefits of the "Foreign Expert" status, for a limited time period, and most crucially, allows a maximum cap of 25% on the income tax rate for a period of three years with a possibility of further extensions up to five years.

Lastly, many additional tax benefits exist for new immigrants and returning residents. If you qualify, under a strict set of definitions and criteria, benefits include being exempt from Israeli taxation for a period of ten years.

Social Security in Israel

Social security in Israel consists of the national insurance and health insurance.

Contribution rates to the national insurance vary from 0.4% to 7% for residents and 0.04% to 0.87% for non-residents. The exact rate depends on your income and a maximum cap exists on the applicable income.

For health insurance, contribution rates for residents vary from 3.1% to 5% depending on your income. Note that non-residents are not subject to health insurance contributions.

Resident status and income tax in Israel

Residents taxpayers are subject to income tax on their worldwide income while non-resident taxpayers are subject to income tax on only their Israeli-sourced income.

Individuals are classified as residents for tax purposes if their "center of life" is located in Israel. The process for determining one's "center of life" is not straightforward as many factors, among a long list, are reviewed and each individual is considered on a case by case basis. Some of these factors may include staying in Israel for at least 183 days in a calendar year or staying in Israel for 30 days in the current calendar year but having stayed at least 425 days during the most recent three year period.

Sources:

Quick Facts about Israel

  • Name(s) in Native Language(s):יִשְׂרָאֵל
  • Main Language(s):Hebrew
  • Currency:Israeli New Shekel (₪)
  • Total Population:9,370,930
  • Most Populous City:Jerusalem, Tel Aviv
  • Time Zone(s):UTC+2
    (Summer: UTC+3)
  • International Phone Code:+972
  • Driving Side:Right
  • Climate:Ranges from mediterranean to desert

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Tax Calculator Disclaimer

  • Tax situations vary widely and calculations can get very complex. This calculator only provides an estimate according to the most common scenarios for salary (standard employment income) that comes from an employer. If you are self-employed, your taxes might differ.
  • There may be additional deductions, credits, exemptions, allowances, reliefs, etc depending on many factors. Some factors are about your family such as the number of dependents, children, relatives, parents, etc. Other factors may include mortgage payments, property depreciation, charitible donations, additional voluntary retirement contributions, etc. Whether or not you are handicapped and/or disabled may also sometimes be an additional factor.
  • Depending on region and jurisdiction, salary bonuses may be treated and taxed differently from standard salary. Additionally, some cities may have city specific income tax.
  • This calculator only estimates income tax. It does not consider other taxes like property tax, self-employment tax, capital gains tax, dividend tax, etc.
  • Calculators from other sites may show slightly different numbers due to different deductions/credits being included or they are based on data from a different year.
  • Investomatica is not a tax advisor. While we try our best to stay up to date with changes in tax codes, we make no guarantee our calculator will always be accurate. Generally, we review changes once a year. If you notice a major miscalculation or error with our calculator (most likely caused by a typo somewhere), feel free to direct message us on twitter and let us know. However, if you have specific tax questions, please consult a licensed tax professional.

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