Income Tax Calculator
Calculate your annual and monthly income tax based on 2024 Israeli tax brackets. Includes credit points and national insurance.
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Results
2024 Tax Brackets
| Bracket | From | To | Rate | Tax |
|---|---|---|---|---|
| 1 | 0 | 84,120 | 10% | 8,412 ₪ |
| 2 | 84,120 | 120,720 | 14% | 5,124 ₪ |
| 3 | 120,720 | 193,800 | 20% | 9,696 ₪ |
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How this calculator works
Israeli income tax is calculated on a marginal-bracket basis. We take your monthly gross, multiply by 12 to annualize, subtract the annual employee pension contribution (recognized as a tax-deductible expense up to 7% of salary), and apply the seven brackets in sequence. Each block of taxable income inside a bracket is taxed at that bracket's rate; only the income above each ceiling rolls into the next bracket. We then subtract the value of your credit points (nekudot zikui) from the gross tax to produce the annual tax payable. Dividing by 12 gives the monthly figure.
Bituach Leumi (National Insurance) and the health tax sit alongside income tax with their own two-tier rates. Below the monthly threshold of ₪7,122 (2026), Bituach Leumi is 0.4% and health tax is 3.1%. Above it, the rates jump to 7% and 5% respectively, applied to the portion above the threshold and capped at a monthly ceiling of ₪49,030. The calculator returns both, separately, so you can see where the deduction is heaviest.
2026 brackets used here: 10% up to ₪84,120 annual; 14% to ₪120,720; 20% to ₪193,800; 31% to ₪269,280; 35% to ₪560,280; 47% to ₪721,560; 50% above. One credit point is worth ₪2,904/year. An Israeli resident salaried employee defaults to 2.25 points.
What it does NOT calculate
- Self-employed taxation (different brackets after the 12.83% combined NI/health on the first tier; no automatic credit points for some categories).
- Capital gains tax (25% on real gains, 15% on shekel deposits — handled separately).
- Mas Yisuf (surtax) of 3% on annual income above roughly ₪721,560 (already baked into the 50% top bracket here for the income-tax portion).
- Tax credits for life events (single parent, child with disability, residency in a development town) — these add credit points; you adjust the "Credit Points" input manually.
- End-of-year settlement adjustments via Form 101 / 135 — the calculator shows steady-state monthly tax, not retroactive corrections.
Worked examples
Example 1 — ₪10,000/month, 2.25 credit points, 6% pension. Annual gross ₪120,000; less pension ₪7,200 = taxable ₪112,800. First bracket: ₪84,120 × 10% = ₪8,412. Second bracket: ₪28,680 × 14% = ₪4,015. Gross tax ₪12,427. Credit ₪6,534 → annual tax ₪5,893. Monthly tax ≈ ₪491.
Example 2 — ₪18,000/month, 2.25 credit points, 6% pension. Annual gross ₪216,000; less pension ₪12,960 = taxable ₪203,040. Climbs into 31% bracket. After credit points: annual tax ≈ ₪33,500 → ~₪2,790/month. Effective rate ~15.5%.
Example 3 — ₪45,000/month, 2.25 credit points, 7% pension. Reaches the 35% bracket. Annual tax ≈ ₪147,000 → ~₪12,250/month. Effective rate ~27%. Note Bituach Leumi and health tax add another ~₪3,800/month.
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FAQ
What are the 2026 tax brackets?
10%, 14%, 20%, 31%, 35%, 47% and 50% — applied in marginal blocks on annual taxable income. The cutoffs are ₪84,120 / ₪120,720 / ₪193,800 / ₪269,280 / ₪560,280 / ₪721,560.
What is a credit point worth?
₪2,904 per year in 2026. Each point directly reduces your tax bill (not your taxable income). A resident salaried employee gets 2.25 points; women get an extra 0.5 point; parents of young children get additional points.
Is the pension deduction always 6%?
No. It can be up to 7% of monthly salary for the employee side, fully tax-deductible up to the cap. Some employees opt for higher voluntary contributions; the calculator lets you adjust.
How does this differ for self-employed?
Self-employed pay both the "employee" and "employer" portions of Bituach Leumi and health tax themselves, plus quarterly advance income tax payments. The marginal income-tax brackets are the same.
What is "effective rate" vs marginal?
Marginal rate is the tax on the last shekel you earn. Effective rate is total tax divided by total income — always lower than marginal because earlier income is taxed at lower brackets.
When does Mas Yisuf (surtax) apply?
For income above roughly ₪721,560/year (2026), a 3% surtax is added on top of regular brackets. Our 50% top bracket already incorporates the surtax for that segment.
Sources & last updated
Bracket structure from Israeli Tax Ordinance (Pekudat Mas Hachnasa); credit-point value and Bituach Leumi thresholds from National Insurance Institute (Bituach Leumi) 2026 schedule. Updated for 2026 by the Yesh Cash Editor.