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Gross-to-net calculator for freelancers, 2026

Enter your annual income and get a breakdown by income tax bracket and Bituach Leumi (National Insurance), plus the net amount you're left with, based on 2026 rates. Works for both osek murshe (licensed dealer) and osek patur (exempt dealer) businesses.

What reduces taxable income is covered in the deductible expenses guide, and the status comparison in the business status guide.

The figures the calculation runs on
10%The first income-tax bracket in 2026
₪2,904Value of one credit point per year
4.5%Recognized contribution rate to a study fund
52%Of national insurance contributions is deductible
Brackets and ceilings are updated every year. The result is an estimate and does not replace an accountant.

Taxable income - your profit after deducting recognized expenses, before income tax and Bituach Leumi.

The default of 2.25 is the base points for men (2.75 for women). Additional points may apply (children, new immigrants, single parents, and more).

The default of ₪38,412 is the maximum amount recognized for deduction and credit (11% + 5.5% of income, up to the qualifying-income ceiling of ₪232,800).

The default of ₪13,202 is the maximum amount recognized as a tax-deductible expense (4.5% of income, up to the income ceiling of ₪293,397).

Both fields are editable - set them to 0 if you don't make these deposits, or enter your actual amount.

This calculator is an estimate only and is not tax advice. The calculation excludes additional personal deductions and recognized expenses - for a breakdown of recognized expenses, see the deductible expenses calculator.

What goes in the income field

An employee has a payslip with gross printed at the top and net at the bottom, and both numbers are given. A freelancer has no payslip. There is turnover, then deductible expenses come off it, and what remains is taxable income. That is the number the first field here is asking for.

Entering turnover instead of taxable income produces a net figure far below the real one, because you end up taxing money that already went out to suppliers. A freelancer with NIS 400,000 of turnover and NIS 90,000 of expenses enters 310,000.

Why the net comes out lower than it first looks

The same income leaves a freelancer with less than it leaves an employee, and the main reason is national insurance. For an employee the employer carries the larger share of it. A freelancer has no employer, so both shares come out of the same pocket. 52% of the contributions are deductible from taxable income, which is what softens the gap.

There is a timing difference too. Tax is not withheld at source but paid through the year as advances, and the real reckoning closes only in the annual return. The net shown here is the end result of that reckoning, not what sits in the account month to month.

What this calculation does not know about you

Credit points are the assumption that varies most between people. The default is 2.25 points, the base for a man, against 2.75 for a woman. Children, immigration, an academic degree or single parenthood all add points, and each point is worth NIS 2,904 a year.

Three more things stay outside. A spouse's income and the tax coordination between two income sources are not part of the calculation. Surtax of 3% on income above NIS 721,560 is not applied here. And personal credits such as donations, life insurance or a disability claim need an individual calculation, which an accountant does in the annual return.

Want to see your net income based on actual figures, not an estimate?

Slate tracks your income and expenses in real time throughout the year.

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