Israel income tax brackets 2026
The seven brackets that apply to an individual's income in 2026, employee or self-employed, by year and by month. Each bracket applies only to the part of income that falls inside it.
To see the tax on your own income, with national insurance and credit points, use the net income calculator for the self-employed.
| Bracket | Annual income | Monthly income | Tax rate |
|---|---|---|---|
| 1 | ILS 1–84,120 | ILS 1–7,010 | 10% |
| 2 | ILS 84,121–120,720 | ILS 7,011–10,060 | 14% |
| 3 | ILS 120,721–228,000 | ILS 10,061–19,000 | 20% |
| 4 | ILS 228,001–301,200 | ILS 19,001–25,100 | 31% |
| 5 | ILS 301,201–560,280 | ILS 25,101–46,690 | 35% |
| 6 | ILS 560,281–721,560 | ILS 46,691–60,130 | 47% |
| 7 | Over ILS 721,560 | Over ILS 60,130 | 50% |
Income here means taxable income: for the self-employed, profit after deductible expenses. Monthly income is annual divided by 12.
Each bracket taxes only the slice inside it
Moving into a higher bracket does not raise the tax on all your income. A shekel that lands in the 20 percent bracket is taxed at 20 percent, and every shekel below it stays taxed at the lower rates. So there is no point at which earning more leaves you with less.
Example: taxable income of ILS 200,000 a year splits across the brackets like this.
| Slice of income | Rate | Tax on the slice |
|---|---|---|
| ILS 84,120 | 10% | ILS 8,412 |
| ILS 36,600 | 14% | ILS 5,124 |
| ILS 79,280 | 20% | ILS 15,856 |
| Tax before credit points | ILS 29,392 | |
| Less 2.25 credit points | ILS 6,534 | |
| Income tax to pay | ILS 22,858 | |
Credit points come off the tax itself
A credit point is worth ILS 2,904 a year, or ILS 242 a month, and it is set against the tax calculated from the brackets, not against income. An Israeli resident man gets 2.25 base points, and more are given for personal circumstances such as children, an academic degree or military service.
That is why income up to a certain level pays no income tax at all: as long as the bracket tax is below the value of the credit points, it drops to zero.
The top bracket includes the surtax
Income above ILS 721,560 a year carries a 3 percent surtax on top of regular income tax. The table already includes it in the last bracket's rate of 50 percent.
What the table leaves out
National insurance and health tax are calculated separately, on brackets of their own. A self-employed person pays both on the same income, so their net is lower than income tax brackets alone suggest. The national insurance calculator for the self-employed covers that part.
The self-employed also do not pay the tax once a year but through income tax advances during the year, and the annual return settles up using these brackets.
Your income, totalled by month
Slate totals your income from the invoices you issue, so you always see where you stand against the brackets.
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