Net Salary Calculator
Enter your gross salary and get a full breakdown: income tax, national insurance, health tax, pension, and net salary.
Enter Details
Results
More tools
How this calculator works
A monthly Israeli payslip subtracts four deductions from gross salary. Income tax uses the seven marginal brackets (10% / 14% / 20% / 31% / 35% / 47% / 50%) applied to annualized salary minus the recognized pension contribution, then reduced by credit points (₪2,904 each, 2.25 by default). Bituach Leumi (National Insurance) is 0.4% below the ₪7,122/month threshold and 7% above it, capped at the ₪49,030/month ceiling. Health tax is 3.1% and 5% on the same tiers. Pension defaults to 6% of gross — fully tax-deductible.
The calculator also surfaces employer cost— what the company pays out of pocket. Adding the employer's pension contribution (typically 6.5%, possibly 7.5% with severance) plus the employer-side Bituach Leumi (approximately 7.68% above threshold) shows the "loaded" cost of your role. This is useful when negotiating freelance day rates or comparing employment to contracting.
2026 parameters used: brackets per Israeli Tax Ordinance 2026 schedule. Bituach Leumi threshold ₪7,122/month, ceiling ₪49,030/month. Credit point value ₪2,904/year. Employee pension cap 7% (with employer typically 6.5% plus severance). The calculator does not model special bonus tax treatment (option 102/3) or 13th-salary smoothing.
What it does NOT calculate
- Self-employed taxation — freelancers pay both sides of Bituach Leumi and health tax and file quarterly advance tax (mikdamot).
- Study fund (keren hishtalmut) — separate tax-advantaged saving up to ~₪15,712/year; not deducted from gross here.
- Special tax events: relocation bonuses, signing bonuses, stock-option exercise (sections 3(t), 102).
- Travel allowance fully — only if you toggle the optional transport field, and even then without the deduction-cap nuances.
- Settlement adjustments via end-of-year Form 101 / 135 — this shows steady-state monthly takings.
Worked examples
Example 1 — ₪12,000 gross, 2.25 credit points, 6% pension. Annual taxable ₪135,360. Income tax ≈ ₪700/month after credits. Bituach Leumi ≈ ₪370, health ≈ ₪265, pension ₪720. Net ≈ ₪9,945. Employer cost ≈ ₪13,700.
Example 2 — ₪22,000 gross, 2.25 credit points, 7% pension. Climbs into the 31% bracket. Tax ≈ ₪3,250/month. NI ≈ ₪1,425, health ≈ ₪1,000, pension ₪1,540. Net ≈ ₪14,785. Employer cost ≈ ₪25,100.
Example 3 — ₪50,000 gross, 2.25 credit points, 7% pension. Bracket reaches 47% on top slice. Tax ≈ ₪14,500/month. NI + health ≈ ₪4,300, pension ₪3,500. Net ≈ ₪27,700. Employer cost ≈ ₪57,000.
Related calculators
FAQ
Why is my real payslip slightly different?
Real payslips include components this calculator omits — travel allowance with deduction limits, sick-day balance, leftover vacation, year-end settlement adjustments, and 13th-salary smoothing. Differences within 1-2% are normal.
What is the 2026 Bituach Leumi structure?
Two tiers: 3.5% combined (NI 0.4% + health 3.1%) below ₪7,122/month, jumping to 12% combined (NI 7% + health 5%) above. The ceiling is ₪49,030/month — earnings above that are not subject to Bituach Leumi.
What are credit points worth in 2026?
₪2,904 per year per point. A resident employee gets 2.25; women +0.5; parent of young children adds more. Each point directly reduces tax payable, not taxable income.
Is the employer cost relevant to me?
It is the most accurate measure when negotiating salary. The company's offer is rooted in the total loaded cost. Knowing it lets you compare full-time employment offers to consulting day rates apples-to-apples.
Where does the study fund (keren hishtalmut) fit?
Not modeled here. Keren hishtalmut is an optional tax-advantaged saving (employer typically 7.5%, employee 2.5% of salary up to a cap). It reduces taxable income and the take-home but builds a 6-year liquid pot.
How does pension contribution affect net?
Higher contribution lowers current take-home but increases retirement savings and reduces immediate tax (the contribution is deductible up to the cap). It is a forced-saving lever, not a loss.
Sources & last updated
Brackets and credit-point value from Israeli Tax Ordinance 2026 schedule (Pekudat Mas Hachnasa). Bituach Leumi rates and ceilings from the National Insurance Institute. Employer-cost coefficients from National Insurance Institute employer schedule. Updated for 2026 by the Yesh Cash Editor.