How Israeli Net Pay Is Calculated
- Income tax: the bracket rates on gross pay, then minus your credit points.
- Bituach Leumi: 1.04% up to ₪7,703 a month, 7% above it.
- Health tax: 3.23% up to ₪7,703, 5.17% above it.
Neto = Bruto − (bracket tax − credit points) − Bituach Leumi − health tax
Both social charges stop at ₪51,910 of monthly pay.
Income Tax Brackets 2026
The Economic Efficiency Law passed in March 2026 widened the 20% and 31% brackets back to 1 January. The other limits stay frozen at their 2024 amounts until 2027.
| Yearly income | Monthly limit | Rate |
|---|---|---|
| ₪0 to ₪84,120 | ₪7,010 | 10% |
| ₪84,120 to ₪120,720 | ₪10,060 | 14% |
| ₪120,720 to ₪228,000 | ₪19,000 | 20% |
| ₪228,000 to ₪301,200 | ₪25,100 | 31% |
| ₪301,200 to ₪560,280 | ₪46,690 | 35% |
| ₪560,280 to ₪721,560 | ₪60,130 | 47% |
| Above ₪721,560 | ₪60,130+ | 50% |
The 50% top rate includes the 3% surtax (mas yesef) above ₪721,560 a year.
Credit Points (Nekudot Zikui)
Each credit point reduces tax by ₪2,904 a year. A resident employee starts with 2.25 points; a woman gets half a point more, 2.75. Points are also given for children, a recent degree, new immigrants, discharged soldiers and some towns. Choose "Other" to enter your own total.
Credit points cannot create a refund: if your bracket tax is lower than their value, income tax is simply zero. With 2.25 points, a resident man earning up to ₪5,445 a month pays no income tax at all.
Worked Example on ₪14,000 a Month
- Bracket tax: ₪84,120 × 10% + ₪36,600 × 14% + ₪47,280 × 20% = ₪22,992 a year
- Less 2.25 credit points: ₪6,534, leaving ₪16,458
- Bituach Leumi: ₪6,250.81; health tax: ₪6,892.34
- Net: ₪138,398.84 a year, ₪11,533.24 a month
Deductions take 17.6%. At ₪30,000 a month the share rises to 30.1%, as more pay falls in the 31% band and the full social rates.
Net Salary by Gross Salary
| Bruto a month | Income tax | Bituach Leumi and health | Neto a month | Share deducted |
|---|---|---|---|---|
| ₪7,000 | ₪155.50 | ₪298.90 | ₪6,545.60 | 6.5% |
| ₪10,000 | ₪575.10 | ₪608.46 | ₪8,816.44 | 11.8% |
| ₪14,000 | ₪1,371.50 | ₪1,095.26 | ₪11,533.24 | 17.6% |
| ₪20,000 | ₪2,681.50 | ₪1,825.46 | ₪15,493.04 | 22.5% |
| ₪30,000 | ₪5,977.50 | ₪3,042.46 | ₪20,980.04 | 30.1% |
| ₪50,000 | ₪13,374.70 | ₪5,476.46 | ₪31,148.84 | 37.7% |
Figures are for a man with 2.25 points and no pension deduction.
Pension and Keren Hishtalmut
Under the general extension order, mandatory pension takes at least 6% of the insured salary from your pay, and the employer adds 6.5% plus a severance component. You receive a tax credit for your share. Many employers also offer a keren hishtalmut (study fund) with 2.5% from you. These amounts vary by contract, so the calculator shows net pay before pension and study fund deductions. Take about 6% more off for a typical payslip.
What Is Taxed and What Is Not
- Taxed: salary, overtime, bonuses, the value of a company car (shovi shimush), meals and phone benefits.
- Exempt up to limits: employer study fund deposits up to the ceiling, and severance within the exempt amount.
- Travel: the commuting allowance (dmei nesia) is taxable pay.
Assumptions and Limits
- Resident employee, one employer, same pay each month, full year.
- No pension, study fund, child or degree points unless you enter them as "Other".
- Bituach Leumi thresholds applied monthly, multiplied to a year. If your pay changes during the year, the yearly tax settles through the employer's December adjustment or a refund claim.
To find the bruto behind a neto offer, use the Net to Gross Calculator. Other countries are listed on the Gross to Net Calculator by Country.
Sources: Income Tax Ordinance as amended in 2026 (Knesset, Sefer HaChukim), Israel Tax Authority 2026 deduction tables (gov.il), National Insurance Institute notices (btl.gov.il). Rates for 2026.
Frequently Asked Questions
What are the 2026 income tax brackets in Israel?
10% to ₪84,120 a year, 14% to ₪120,720, 20% to ₪228,000, 31% to ₪301,200, 35% to ₪560,280, 47% above, and 50% including surtax above ₪721,560.
How much is one credit point worth in 2026?
₪242 a month or ₪2,904 a year, the same as in 2024 because the amounts are frozen until 2027.
Why does a woman get more credit points?
The Ordinance gives women an extra half point on top of the 2.25 points for residents with employment income, so 2.75 in total.
What is the reduced rate of Bituach Leumi?
On the first ₪7,703 of monthly pay, 1.04% national insurance and 3.23% health tax. Above that the rates are 7% and 5.17%, up to ₪51,910.
What is the net of ₪20,000 gross a month?
About ₪15,493.04 a month for a man with 2.25 points, before pension.
Does the calculator include pension?
No. Pension and study fund deductions depend on your contract, so they are left out. A typical employee share is 6% for pension.
What if I have two jobs in Israel?
Credit points and the low brackets are given once. Ask the Tax Authority for a tax coordination (teum mas) so the second employer does not withhold at the top rate, or the first employer does not give the points twice.