Israel has 7 progressive brackets from 10% to 50%, with the 50% top rate kicking in at just ILS 721,560 (~$235,000 USD) — technically a 47% top ordinary bracket plus a 3% "Mas Yesef" high-income surtax above that threshold. Bituach Leumi (National Insurance + Health Tax) adds a two-tier ~4.3%/~12.2% for employees. But Israel offers a powerful incentive: new olim (immigrants) receive a 10-year tax holiday on foreign income and assets—making aliyah financially attractive. A ILS 300,000 earner (~$98,000) pays roughly ILS 50,800 income tax (~17%) plus ILS 29,200 Bituach Leumi. Dollar figures are converted at about ILS 3.07 per US dollar (ECB reference rate, 2 October 2026); the example is a single resident employee with the basic 2.25 credit points, and the bracket and credit parameters rest on secondary payroll-vendor sources because Tax Authority pages were unreachable at the last check. Capital gains are taxed at 25-30%. The high-tech sector benefits from special R&D incentives. Self-employed pay higher Bituach Leumi rates (~17%). Filing deadline is April 30. Use our calculator to estimate your Israeli tax liability.
This hub links to every Israel tax guide and calculator on CountryTaxCalc — covering income tax rates, expat obligations, and tools to calculate your take-home pay.
Detailed Israel tax guides on CountryTaxCalc:
Israel's income tax uses 7 tax brackets from 10% to 50%. Use the calculator to estimate your take-home pay after income tax:
| Income | Rate |
|---|---|
| ₪0 - ₪84,120 | 10% |
| ₪84,120 - ₪120,720 | 14% |
| ₪120,720 - ₪228,000 | 20% |
| ₪228,000 - ₪301,200 | 31% |
| ₪301,200 - ₪560,280 | 35% |
| ₪560,280 - ₪721,560 | 47% |
| Over ₪721,560 | 50% |
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