Israel income tax calculator 2026: from gross to net
Bracket tax, credit points, Bituach Leumi and health tax: the full calculation behind an Israeli payslip, for employees and the self-employed, with the schedule corrected in April 2026.
| Gross tax before points | |
| Credit points | |
| Income tax | |
| Bituach Leumi | |
| Health tax | |
| Estimated net | |
| Effective rate |
2026 schedule (Amendment 288), credit point ₪242/month. Indicative estimate: excludes pension contributions, keren hishtalmut and special credit points. The self-employed also pay tax through monthly advances.
How the calculator works
- Bracket tax. Monthly income is sliced along the 2026 schedule: 10% up to ₪7,010, 14% up to ₪10,060, 20% up to ₪19,000, 31% up to ₪25,100, 35% up to ₪46,690, 47% up to ₪60,130, 50% above. Each bracket applies only to the part of income that reaches it.
- Credit points. The resulting tax is reduced by ₪242 per point: 2.25 for every resident, 0.5 more for a woman, then the child, degree, military service and new immigrant points you tick. Tax never goes below zero.
- Social contributions. Bituach Leumi and health tax are added: for an employee, 4.51% up to ₪7,703 then 12.17% up to ₪51,910; for the self-employed, 7.70% then 18%.
- Estimated net. Gross income minus tax, minus contributions. The overall effective rate sets total deductions against gross.
The parameters live in a single file per tax year, the same one that feeds the guide and its examples. When the authorities publish a new schedule, everything is recomputed at once.
Benchmarks: tax by salary
For a resident man with no children (2.25 points), employed, in 2026:
| Monthly gross | Income tax | Contributions | Estimated net | Overall rate |
|---|---|---|---|---|
| ₪6,000 | ₪56 | ₪271 | ₪5,674 | 5.4% |
| ₪8,000 | ₪295 | ₪384 | ₪7,321 | 8.5% |
| ₪10,000 | ₪575 | ₪627 | ₪8,798 | 12.0% |
| ₪12,000 | ₪972 | ₪870 | ₪10,158 | 15.3% |
| ₪15,000 | ₪1,572 | ₪1,235 | ₪12,193 | 18.7% |
| ₪20,000 | ₪2,682 | ₪1,844 | ₪15,475 | 22.6% |
| ₪25,000 | ₪4,232 | ₪2,452 | ₪18,316 | 26.7% |
| ₪30,000 | ₪5,978 | ₪3,061 | ₪20,962 | 30.1% |
| ₪40,000 | ₪9,478 | ₪4,278 | ₪26,245 | 34.4% |
| ₪50,000 | ₪13,375 | ₪5,495 | ₪31,130 | 37.7% |
The overall rate stays under 20% up to ₪15,000, the Israeli median salary being around ₪10,000 gross. Above ₪25,100, every additional shekel is taxed at 35% plus 12.17% of contributions, close to half, up to the Bituach Leumi ceiling.
| Bracket | Rate | Tax |
|---|---|---|
| 1 – 7,010 | 10% | ₪701 |
| 7,011 – 10,060 | 14% | ₪427 |
| 10,061 – 15,000 | 20% | ₪988 |
| Gross tax | ₪2,116 | |
| Credit points (2.25 pts) | − ₪545 | |
| Income tax | ₪1,572 | |
| Bituach Leumi | ₪609 | |
| Health tax | ₪626 | |
| Estimated net (before pension) | ₪12,193 | |
| Overall effective rate | 18.7% |
What the calculator does not do
- Mandatory pension savings: 6% employee share on the payslip, which earns a tax credit of 35% of the contribution up to a ceiling. Your real net is therefore a few hundred shekels lower, and your tax slightly lower.
- Keren hishtalmut (2.5% employee, 7.5% employer), tax-free up to a salary ceiling.
- Special credit points: single parent, alimony, disability, residence in a priority locality (up to several points), non-working spouse.
- Self-employed deductions: business expenses, 52% of Bituach Leumi contributions, pension payments.
- Passive and capital income, taxed under different rules.
- US tax: a US citizen files both an Israeli and a US return; the exclusion and credit mechanisms are a separate calculation.
For a certified calculation (bank file, visa, salary negotiation), an accountant will produce a full simulation from your tofes 106. The form at the bottom of the page connects you with an English-speaking professional.
Finding these numbers on your payslip
An Israeli payslip (tlush maskoret) shows, top to bottom: gross (bruto), then the deductions: mas hachnasa (income tax), bituach leumi, mas briut (health tax), pensia (pension), sometimes keren hishtalmut, and finally net (neto). The number of credit points applied usually sits in the header next to the tax percentage (achuz mas). If that number is below 2.25, your Form 101 was probably not processed: that is the first thing to check.
Frequently asked questions
How is income tax calculated in Israel?
In progressive monthly brackets (10% to 47%, plus a 3% surtax above ₪60,130), then the tax is reduced by ₪242 per credit point. The calculator applies the 2026 schedule from Amendment 288 and adds Bituach Leumi and health tax contributions.
How much tax on a ₪15,000 gross salary?
About ₪1,572 of income tax for a resident man with no children (2.25 points), plus ₪609 of Bituach Leumi and ₪626 of health tax. Estimated net before pension: about ₪12,190, an overall deduction rate of 18.7%.
From what salary do you pay income tax in Israel?
With 2.25 credit points (₪544.50 a month), an employee pays no income tax below about ₪5,450 gross a month in 2026. A woman (2.75 points) starts around ₪6,650. Bituach Leumi and health contributions apply from the first shekel.
Does the calculator work for the self-employed?
Yes: choose "Self-employed" and enter your profit (revenue minus expenses), not your turnover. Income tax brackets are the same, but contributions are higher (7.70% then 18%). The result ignores the partial deduction of contributions and pension payments.
Why is my actual net different from the result?
Three common reasons: your payslip includes the mandatory pension contribution (6% employee share) and sometimes a keren hishtalmut, which the calculator does not deduct; you have special credit points (single parent, priority locality, disability); or your employer has not yet applied the corrected April 2026 schedule.
Does the calculator account for children?
Yes, in a simplified way: average points per child by age. The exact rules depend on the parent (mother or father), year of birth and custody; for a precise family situation, the guide details the per-child point schedule.
What about US taxes?
This calculator covers Israeli tax only. US citizens must still file a US return; the foreign earned income exclusion and the foreign tax credit usually eliminate double taxation on salary, but not always on passive income. A cross-border accountant should run both sides.
Is my data stored?
No. The calculation runs entirely in your browser; nothing is sent to a server and we store no amount you enter.
How we work
Every figure on this page is checked against the official source listed at the bottom and dated. When a schedule changes, the page is updated within days of the official publication. Our methodology.
Sources
Need a professional?
Describe your situation in two lines. We pass it on to a qualified English-speaking accountant or advisor who gets back to you within 48 hours.