Israel Personal Income Tax
Detailed personal income tax rates and rules for Israel in 2026.
Israel imposes a progressive personal income tax with seven brackets ranging from 10% to 50%. The top 50% rate includes a 3% surtax on high earners (income exceeding approximately ILS 721,560). Residents are taxed on worldwide income, while non-residents are taxed only on Israeli-sourced income. New immigrants (olim hadashim) and returning residents (after 10+ years abroad) are granted a 10-year exemption on foreign-sourced income and capital gains, plus reporting exemptions.
| Income Range (ILS) | Tax Rate |
|---|---|
| ₪0 – ₪84K | 10% |
| ₪84K – ₪121K | 14% |
| ₪121K – ₪194K | 20% |
| ₪194K – ₪269K | 31% |
| ₪269K – ₪560K | 35% |
| ₪560K – ₪722K | 47% |
| ₪722K+ | 50% |
Filing Deadline
April 30 (individuals); extended deadlines available for represented taxpayers (typically July 31)
Residency Rule
An individual is a tax resident if their center of life is in Israel, determined by factors including permanent home, family location, economic and social interests. A presumption of residency applies if an individual is present in Israel for 183 days or more in a tax year, or 30+ days in the current year with 425+ days over the current and two preceding years. Residents are taxed on worldwide income.
Additional Notes
Israel provides various tax credits including personal credit points (nekudot zikui) that reduce tax liability. Each credit point is worth approximately ILS 2,904 per year. Residents receive 2.25 credit points (2.75 for women). Additional credits are available for children, new immigrants, students, military service, and other qualifying circumstances. Contributions to recognized pension funds and provident funds are tax-deductible or eligible for tax credits.
How Israel Income Tax compares
Israel’s top personal income tax rate of 50% is the 10th highest of 203 countries TaxAtlas tracks, above the global average of 27.7% and Asia’s regional average of 22.2%.
