Israel income tax rates
Statutory marginal income tax rates for resident individuals on income from personal exertion (הכנסה מיגיעה אישית — employment, business and profession), under section 121 of the Income Tax Ordinance [New Version], 5721-1961. Amounts are annual New Israeli Shekels for tax year 2026; the Israel Tax Authority publishes the equivalent monthly and daily tables in its annual deductions booklet.
| Current value | 6 entries — see the API for the full schedule |
|---|---|
| In force from | 2026-01-01 |
| Official source | Israel Tax Authority, 'לוח עזר לחישוב מס הכנסה ממשכורת ושכר עבודה לחודש ינואר 2026 ואילך', reissued and updated April 2026, chapter ב 'שיעורי מס הכנסה' — the annual table 'לאחר חוק ריווח מדרגות מס הכנסה'. Legal basis: section 121 of the Income Tax Ordinance as amended on 31.3.2026 by the Economic Efficiency Law (Legislative Amendments for Achieving the Budget Targets for Budget Year 2026), 5786-2026, chapter ג (ריווח מדרגות מס הכנסה), applying retroactively from 1 January 2026 |
| Last verified | 2026-07-24 |
| Verification | primary — No verification limitation recorded — read from the official source cited. |
| Provenance | source fingerprint |
What this value means
THE BRIEF IS WRONG ON THE MECHANISM: these bands are NOT indexed annually at present. Section 120B of the Ordinance normally re-indexes them to CPI each 1 January, but the Economic Efficiency Law (Freezing of Tax Updates and Surtax), 5785-2024, published in Sefer HaChukim 3342 on 26 December 2024, SUSPENDED that indexation for tax years 2025, 2026 and 2027. What changed for 2026 was a discretionary widening, not indexation: on 31 March 2026 the Knesset amended section 121 to stretch two bands retroactively to 1 January 2026 — the 20% band from a ceiling of ILS 193,800 to ILS 228,000, and the 31% band from ILS 269,280 to ILS 301,200. The 10%, 14%, 35% and 47% thresholds were untouched. Estimated cost ILS 4.25bn in 2026, ILS 5bn a year thereafter. MONTHLY EQUIVALENTS (ITA table): 10% up to 7,010; 14% 7,011–10,060; 20% 10,061–19,000; 31% 19,001–25,100; 35% 25,101–46,690; 47% above 46,690. DAILY (עובד יומי): 10% up to 280.40; 14% to 402.40; 20% to 760.00; 31% to 1,004.00; 35% to 1,867.60; 47% above. SURTAX ON HIGH INCOME (מס יסף), section 121B: an individual whose taxable income for the year exceeds ILS 721,560 (ILS 60,130 per month) pays an ADDITIONAL 3% on the excess, so the top effective marginal rate on earned income is 50%, not 47%; employers must withhold it on salaries above ILS 60,130 a month. The December 2024 freezing law added a FURTHER 2% surtax on taxable income from CAPITAL sources above the same threshold, taking the surtax to 5% on that income. The section 121B threshold is likewise frozen through 2027. PASSIVE INCOME: income that is NOT from personal exertion has a separate, truncated schedule with a 31% floor — 31% up to ILS 301,200, 35% to ILS 560,280, 47% above — so the 10%, 14% and 20% bands are unavailable on passive income. CREDIT POINTS (נקודות זיכוי), which reduce tax payable rather than taxable income and are not modelled in the bands: ILS 242 per month (ILS 2,904 a year) per point in 2026; every resident gets 2.25 points, women 2.75, with additional points for children, discharged soldiers, new immigrants and, under a 2025 temporary order covering 2026–2027, up to 4 extra points for combat reserve duty. Roughly 49% of Israeli earners fall below the tax threshold once credit points are applied. RESIDENCE-BASED RELIEFS also outside the bands: a 5%–20% credit for residents of qualifying settlements (יישובים מוטבים), 10% for Eilat, and a temporary exemption for new immigrants and long-term returning residents arriving between 5.11.2025 and 31.12.2026 on personal-exertion income up to ILS 600,000 in 2026. ACCESS NOTE: the ITA booklet PDF is served from gov.il/BlobFolder, which returns HTTP 403 to curl and to WebFetch; a JavaScript-capable browser session retrieves it. Watch the annual reissue each January, plus any mid-year reissue like the April 2026 one.
Earlier values
| From | Value | Source |
|---|---|---|
| 2025-01-01 | structured | Knesset Research and Information Centre, 'תיאור וניתוח ההצעה |
Get it programmatically
curl https://asiaref.dev/v1/il/income-tax
# $0.001 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://asiaref.dev/v1/il/income-tax/history?from=2020-01-01
# Provenance: curl https://asiaref.dev/provenance/il/income-taxOther Israel series: policy interest rate · VAT rate · minimum wage · public holidays · inflation rate (CPI) · corporate tax rate