Israel salary calculator 2026
Free Israel salary calculator 2026: net take-home pay for employees and the self-employed. Progressive income tax with credit points (nekudot zikui), Bituach Leumi and health insurance, osek patur and osek murshe options. Educational, not tax advice.
by Simon Bodych
Methodology & sources
Methodology - Israel (2026)
Educational monthly model for tax year 2026 (annual = month x 12) - not a payroll system, not a tax return, not tax advice. Some 2026 figures are provisional: the income tax brackets and the credit-point value are inflation-indexed and announced by the Israel Tax Authority around December, while the National Insurance rates, average wage and ceiling are set by Bituach Leumi each January. Out of scope: pension / keren hishtalmut deductions, extra credit points and the 3% surtax (mas yasaf).
Employment (sachir)
- Progressive income tax (mas hachnasa) under sec. 121 of the Income Tax Ordinance; the annual brackets are inflation-indexed each January (sec. 120B) and applied monthly (annual bracket / 12), the way an Israeli payslip withholds.
- Credit points (nekudot zikuy, sec. 33A-36): each point reduces the income tax by a fixed value. A resident gets 2.25 points, a resident woman 2.75 points. The credit is non-refundable - it cannot take the tax below zero.
- Bituach Leumi (National Insurance) plus health tax (mas briut) on the employee: both are split into a reduced band up to 60% of the average wage and a full band above it, up to a single contribution ceiling of 5x the average wage. Health tax is employee-only (no employer share).
Sources: Israel Tax Authority (Rashut HaMisim) - Income Tax Ordinance, brackets (sec. 121), indexation (sec. 120B), credit points (sec. 33A-36A), National Insurance Institute (Bituach Leumi) - contribution rates, average wage, 5x ceiling and the National Health Insurance health tax.
Osek patur (exempt dealer)
- A small self-employed person whose annual turnover is below the VAT-exemption threshold. Not VAT registered: does not charge or reclaim VAT.
- Taxable profit = revenue minus deductible expenses, taxed by the same progressive brackets and credit points (default 2.25) as employment, on the annual profit (sec. 121).
- Bituach Leumi plus health tax at the self-employed rates: a reduced band up to 60% of the average wage and a full band above it, up to the 5x average-wage ceiling. The self-employed person carries both sides of the National Insurance burden.
Sources: Israel Tax Authority - Income Tax Ordinance, brackets (sec. 121), credit points (sec. 33A-36A), osek-patur turnover threshold, National Insurance Institute (Bituach Leumi) - self-employed (atzmai) rates, average wage and 5x ceiling.
Osek murshe (licensed dealer)
- A self-employed person above the threshold (or one who elects / must register). VAT registered: VAT is a pass-through (charged on sales, reclaimed on purchases) and is not a take-home cost - the standard VAT rate is noted but not netted from the owner's income.
- Income tax and self-employed Bituach Leumi / health tax are identical to osek patur: progressive brackets and credit points on the annual profit, with the reduced/full National Insurance split up to the 5x ceiling.
Sources: Israel Tax Authority - Income Tax Ordinance (sec. 121, credit points) and the VAT Law (Hok Mas Erech Musaf), National Insurance Institute (Bituach Leumi) - self-employed rates, average wage and 5x ceiling.