Israel Tax Brackets (2023)

Income tax for workers in Israel since the 1st of January, 2023

Income tax in Israel is deducted automatically by employers (Unless the worker is self-employed). 
Israel workers pay the income tax by depending on the height of the salary. Workers with higher salaries pay more taxes, and a larger portion of their salary is deducted as a tax. 
The minimum tax stands on 10% for a salary of up to 6240 NIS. That means that for every NIS of salary to this amount, a worker will pay 10% of his salary as a tax. 

So if my salary is 6000 NIS, 10% is deducted, which comes down to 5600 NIS net salary. 
If a workers salary is above 6240 NIS, then for every NIS above this bracket, and until the next one (8950 NIS) he'll pay 14%. 
So, a worker with a gross salary of 8000 NIS will pay 6240 * 10% + (8000 - 6240 ) * 14%, which comes to 888 NIS and will get a net salary of 7112 NIS.

* Please note that this explanation only regards the income tax. Workers also have to pay Social Security tax, Health Tax, and Pension.

Israel salary tax brackets

Bracket NumberIncome amountTax rate for bracketMaximum tax from bracketAggragated tax amount
1From 0 ₪ To 7,010 ₪10%701 ₪701 ₪
2From 7,010 ₪ To 10,060 ₪14%427 ₪1,128 ₪
3From 10,060 ₪ To 16,150 ₪20%1,218 ₪2,346 ₪
4From 16,150 ₪ To 22,440 ₪31%1,950 ₪4,296 ₪
5From 22,440 ₪ To 46,690 ₪35%8,488 ₪12,783 ₪
6From 46,690 ₪ To 60,130 ₪47%6,317 ₪19,100 ₪
7On any additional amount50%

VAT percent in Israel

VAT stands for value added tax, which means that for every service or products bought by a consumer, a percent of it is actually a tax amount. In Israel it was fisrt introduced in the 1st of November, 1977. Back then it was 8%. By the law, all prices that are shown to comsumers must include the VAT, so the price stated on the products or listings are final.

Current VAT in Israel

The current VAT in Israel is 17% (Since the 1st of October, 2015)

Future - 01.01.25

The VAT tax will be probably updated to 18%.