🇮🇱 Israel
Net salary in Israel: income tax, Bituach Leumi and credit points
Israel: 2026 income tax from 10% to 47% in six brackets, plus a 3% surtax above 721,560 ILS, after 2.25 credit points of 242 ILS a month. The EXPATRIATION.IO calculator turns gross salary into net take-home pay with the two tiers of national insurance and health tax and the 6% mandatory pension.
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Tax breakdown by bracket
| Bracket | Rate | Amount | Tax |
|---|---|---|---|
| 0 ₪ – 84,120 ₪ | 10.0% | 84,120 ₪ | 8,412 ₪ |
| 84,120 ₪ – 120,720 ₪ | 14.0% | 36,600 ₪ | 5,124 ₪ |
| 120,720 ₪ – 228,000 ₪ | 20.0% | 107,280 ₪ | 21,456 ₪ |
| 228,000 ₪ – 301,200 ₪ | 31.0% | 2,000 ₪ | 620 ₪ |
| Personal allowance | - 6,534 ₪ | ||
| Tax credit on the pension contribution | - 2,852 ₪ | ||
| Income tax | 26,226 ₪ | ||
Social contributions breakdown
Employer contributions
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Computed for your profile: 173,172 ₪ net in Israel.
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|---|---|---|
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🇮🇱 Israel
Israel taxes salaries through income tax withheld by the employer, on the 2026 scale of the Income Tax Ordinance as widened by Amendment 288 (passed on 30 March 2026, published on 31 March, applicable to income from 1 January 2026): 10% up to 84,120 ILS a year, 14% to 120,720, 20% to 228,000, 31% to 301,200, 35% to 560,280 and 47% above, plus a 3% surtax on taxable income above 721,560 ILS; the thresholds are frozen until 2027. Every resident deducts 2.25 credit points from the tax, worth 242 ILS a month each in 2026 (6,534 ILS a year); a woman has 2.75 points (7,986 ILS a year), an option of the calculator. National insurance (Bituach Leumi) and the health tax are withheld in two tiers of monthly salary: 1.04% and 3.23% up to 7,703 ILS, then 7% and 5.17% from there to the 51,910 ILS ceiling (rates in force on 1 January 2026). The 6% employee share of the mandatory pension of the extension orders (6.5% employer plus 6% severance since 2017, shown in the employer cost) is deducted on the salary up to the average wage, 13,769 ILS a month, and the 35% tax credit of section 45a on that contribution is applied within the 2026 ceilings. Non-resident employees pay national insurance at reduced rates and no health tax.
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What the calculation reproduces, what it does not model
The model is a single resident employee with 2.25 credit points (2.75 with the woman option); the credit points of an oleh (section 35 of the Ordinance) and the temporary exemption of Israeli-source earned income for an oleh or a certified veteran returning resident who became a resident between 5 November 2025 and 31 December 2026 (law published on 31 March 2026, implementation circular pending) are not applied. The 6% employee pension contribution is deducted on the gross salary capped at the average wage (165,228 ILS a year), the base of the extension orders according to the Kol Zchut portal unless the employment agreement provides for a higher base: an employer that insures the whole salary withholds more. The section 45a credit is applied with the ceilings of section 45a(d), those of a member who is not a preferred member; the calculator does not test the preferred-member status of section 47 (amounts paid to a pension fund in the year of at least 16% of the average wage, 26,436 ILS in 2026, the components counted being not characterised here). For a preferred member whose salary exceeds the insured base, the ceiling of section 45a(e) can be higher and the credit can exceed the amount applied here. The 3% surtax is modelled as a 50% band on salary alone. Amounts are annual on a constant monthly salary; the reduced national insurance tier and the ceiling are the amounts in force from 1 January 2026. Non-resident rates are not applied. Confirm with the Tax Authority and the National Insurance Institute.
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Get the Expat Package Report (49 EUR)Tax system in Israel
Israel withholds income tax at source on the 2026 scale widened by Amendment 288 of 31 March 2026, applicable from 1 January: six brackets from 10% up to 84,120 ILS to 47% above 560,280 ILS, plus a 3% surtax above 721,560 ILS, after 2.25 credit points of 242 ILS a month. National insurance (Bituach Leumi) and the health tax are withheld in two tiers: 1.04% and 3.23% up to 7,703 ILS a month, then 7% and 5.17% up to the 51,910 ILS ceiling. The mandatory pension (6% employee since 2017, on the salary capped at the average wage) is deducted together with the section 45a tax credit; the provisions specific to new immigrants are described on this page without being applied.
Income tax scale 2026
| Taxable 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% |
| ₪721,560 and above | 50% |
Employee social contributions
| Contribution | Rate | Annual cap |
|---|---|---|
| National insurance, Bituach Leumi (1.04% then 7%) | 0% | No cap |
| Health tax (3.23% then 5.17%) | 0% | No cap |
| Mandatory pension, employee (6%) | 6% | ₪165,228 |
Gross to net for common salaries (2026)
Single filer without children, standard scale and employee contributions. Estimates for planning, identical to the calculator above.
| Gross per month (over 12) | Gross per year | Net per year | Net per month (over 12) | Employer cost per year | Total deductions |
|---|---|---|---|---|---|
| ₪6,444 | ₪77,326 | ₪69,385 | ₪5,782 | ₪90,479 | 10.3% |
| ₪7,703 | ₪92,436 | ₪81,842 | ₪6,820 | ₪108,159 | 11.5% |
| ₪10,000 | ₪120,000 | ₪101,117 | ₪8,426 | ₪141,264 | 15.7% |
| ₪13,769 | ₪165,228 | ₪129,457 | ₪10,788 | ₪195,583 | 21.6% |
| ₪16,667 | ₪200,000 | ₪153,043 | ₪12,754 | ₪232,997 | 23.5% |
| ₪19,000 | ₪228,000 | ₪172,035 | ₪14,336 | ₪263,125 | 24.5% |
| ₪20,000 | ₪240,000 | ₪178,855 | ₪14,905 | ₪276,037 | 25.5% |
| ₪25,100 | ₪301,200 | ₪213,635 | ₪17,803 | ₪341,888 | 29.1% |
| ₪30,000 | ₪360,000 | ₪244,699 | ₪20,392 | ₪405,157 | 32% |
| ₪40,000 | ₪480,000 | ₪308,095 | ₪25,675 | ₪534,277 | 35.8% |
| ₪51,910 | ₪622,920 | ₪376,082 | ₪31,340 | ₪688,059 | 39.6% |
| ₪60,130 | ₪721,560 | ₪428,362 | ₪35,697 | ₪786,699 | 40.6% |
| ₪75,000 | ₪900,000 | ₪517,582 | ₪43,132 | ₪965,139 | 42.5% |
Income tax 2026: the scale, Amendment 288 and the credit points
The 2026 scale of section 121 of the Income Tax Ordinance applies to employment income in six brackets: 10% up to 84,120 ILS a year (7,010 a month), 14% to 120,720, 20% to 228,000, 31% to 301,200, 35% to 560,280 and 47% above. Amendment 288, passed by the Knesset on 30 March 2026 and published on 31 March within the Economic Efficiency Law for the 2026 budget (Sefer HaChukim 3511), widened the 20% bracket to 228,000 ILS (previously 193,800) and the 31% bracket to 301,200 (previously 269,280) and applies to income produced from 1 January 2026; the Tax Authority booklet of April 2026 carries the new thresholds. Under section 120b as amended in December 2024, the thresholds and credit points are not indexed in 2025, 2026 and 2027 and stay at their 1 January 2024 values. A surtax of 3% (mas yesef, section 121b) is due on taxable income above 721,560 ILS; the additional 2% introduced in 2025 concerns capital-source income only, which excludes salaries.
A resident deducts credit points from the tax: two points (section 34) plus a quarter point for travel (section 36), 2.25 points worth 242 ILS a month each in 2026, 6,534 ILS a year; a woman has an extra half point (section 36a). The calculator applies 2.25 points to the tax computed on the salary, within the limit of that tax, or 2.75 points with the woman option. The employer withholds the tax each month according to the Tax Authority tables; the 2026 booklet is the reference for the monthly thresholds reproduced here on an annual basis.
Sources: Israel Tax Authority, 2026 monthly deductions booklet (updated April 2026) · Knesset, Sefer HaChukim 3511 of 31/03/2026 (amendment 288, chapter C) · Knesset, Sefer HaChukim 3342 of 26/12/2024 (indexation freeze 2025-2027) · Income Tax Ordinance, consolidated text (Nevo)
National insurance and health tax: two tiers at 7,703 and 51,910 ILS a month
The National Insurance Institute (Bituach Leumi) withholds two contributions from an employee resident in Israel, each in two tiers of monthly salary from 1 January 2026: national insurance at 1.04% up to 7,703 ILS and 7% from there to the ceiling of 51,910 ILS, and the health tax at 3.23% then 5.17% on the same tiers, 4.27% and 12.17% in total; nothing is due above the ceiling. The employer adds 4.51% then 7.6% of national insurance and no health tax. According to the Institute's circular 1522 of April 2026, the reduced tier is defined from 2026 as a fixed amount of 7,522 ILS updated each 1 January, by the consumer price index from 2026 to 2028 and by the rise of the average wage from 2029, 7,703 ILS in 2026; 60% of the 2026 average wage of 13,769 ILS a month would be 8,261 ILS. The calculator applies the two tiers on an annual basis: 92,436 and 622,920 ILS.
An employee who is not a resident of Israel pays national insurance only, at 0.1% up to 7,703 ILS and 0.87% above, with 0.75% then 2.65% from the employer, and no health tax. The calculator applies the resident rates.
Sources: Bituach Leumi, employee contribution rates (01/01/2026) · Bituach Leumi, circular 1522 of 01/04/2026 (average wage, reduced bracket, ceiling) · Bituach Leumi, rates for non-resident employees
Mandatory pension: 6% employee, 6.5% employer and 6% severance, and the section 45a credit
Since 2008 an employee aged 21 or more (20 for a woman) must be insured in a pension arrangement under the extension orders of the Minister of Labour: the consolidated order of 2011 and the order of 2016 on the increase of contributions (Yalkut HaPirsumim 7287). According to the Ministry of Labour, the rates since 1 January 2017 are 6% of salary for the employee and 6.5% for the employer, plus 6% paid by the employer for severance, 18.5% in total; the employee may raise the employee share to 7%. The 2011 order sets a waiting period of six months, and an employee who already has a pension arrangement is entitled from the first day, the deposits being made after three months of work or at the end of the tax year, whichever comes first, retroactively. According to the Kol Zchut portal, the contributions are computed on the gross base salary, fixed supplements included and overtime excluded, or on the average wage in the economy (13,769 ILS in 2026), whichever is lower, unless the employment agreement provides for a higher base, for instance the whole gross salary.
Section 45a of the Ordinance grants a tax credit of 35% of the employee contributions to a pension fund, on an eligible amount equal to the higher of a floor (189 ILS a month in the 2026 booklet) and the lower of the amounts paid and 7% of the qualifying income, which the 2026 booklet caps at 9,700 ILS a month for employment income; section 45a(e) sets a distinct ceiling for a preferred member (amit mutav, a person for whom amounts of at least 16% of the average wage, 26,436 ILS in 2026, were paid to a pension fund in the year, section 47). The calculator deducts the 6% contribution on the salary capped at the average wage (165,228 ILS a year) and applies the credit with the ceilings of section 45a(d), without testing the preferred-member status, the components counted for that test being not characterised here; an employer that insures the whole salary withholds more, and for a preferred member whose salary exceeds the insured base the credit can be larger.
Sources: Ministry of Labour, guide “The right to pension insurance”, contribution rates · Ministry of Labour, extension orders database (2016 order) · Ministry of Labour, consolidated 2011 extension order (PDF) · Kol Zchut, employees’ mandatory pension insurance · Income Tax Ordinance, sections 45a and 47 (Nevo) · Israel Tax Authority, 2026 monthly deductions booklet (section 45a ceilings)
New immigrants and returning residents: what the law provides and what the calculator does not apply
Section 35 of the Ordinance, in its current text, grants an oleh, that is the holder of an immigrant visa or certificate under the Law of Return or a person entitled to one who holds a temporary residence permit, additional credit points over 54 months from the month of immigration: one twelfth of a point per month for the first twelve months, a quarter point per month for the next eighteen, one sixth for the next twelve and one twelfth for the last twelve, 8.5 points in total, alongside the 2.25 points of every resident (the previous text provided 42 months and 4.5 points; according to the Knesset Research and Information Center, the 54-month schedule applies to olim who arrived from 1 January 2022). Section 14(a) exempts a first-time resident and a veteran returning resident (at least ten consecutive years as a foreign resident) for ten years on income produced abroad. A temporary law published on 31 March 2026 (Sefer HaChukim 3511, chapter D) exempts the income from personal exertion produced in Israel by an oleh who first became a resident, or by a veteran returning resident holding a returning-resident certificate of the Ministry of Aliyah and Integration, between 5 November 2025 and 31 December 2026: up to 600,000 ILS in 2026, prorated to the period of residence, 1,000,000 ILS in each of 2027 and 2028, 350,000 in 2029 and 150,000 in 2030, unless the person elects otherwise; income received from a relative is exempt up to 140,000 ILS a year from 2026 to 2029, and the law ceases to apply from its commencement to a person who ceases to be a resident in 2028 or 2029 and spends fewer than 75 days in Israel in one of those years. The Tax Authority booklet states that a circular on the conditions of application is to be published. None of these provisions is applied by the calculator, which models an established resident.
Sources: Income Tax Ordinance, sections 14, 35 (Nevo) · Knesset, Sefer HaChukim 3511 of 31/03/2026 (chapter D, temporary law) · 2026 temporary law, consolidated text (Nevo)
Salary benchmarks in Israel in 2026
The monthly minimum wage is 6,443.85 ILS from 1 April 2026 (6,247.67 from April 2025 to March 2026), 35.40 ILS an hour on a 182-hour month. The average wage published by the National Insurance Institute is 13,769 ILS a month from January 2026; the Central Bureau of Statistics puts the average wage per employee job at 13,588 ILS for Israeli employees (13,296 ILS for all employee jobs) in November 2025 (release of 4 February 2026). On 240,000 ILS a year (20,000 a month), a single resident employee keeps 178,855 ILS net, pension contribution deducted, 14,905 ILS a month.
Sources: Bituach Leumi, minimum wage (01/04/2026) · Bituach Leumi, 2026 letter to employers (average wage 13,769) · Central Bureau of Statistics, press release 039/2026 of 04/02/2026
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Source: gov.il (Autorité fiscale, livret des retenues 2026) · Tax year 2026 · Last updated August 2026