Israel Income Tax Rates for 2018-2019. Individual Tax Rates, Resident, Non Resident, Capital Gain Tax and Corporate / Companies taxes.

Israel Individual Income Tax Rate for 2018-2019

Annual Income (NIS)	Tax Rate
0 to 74,880	10%
74,881 to 107,400	14%
107,401 to 172,320	20%
172,321 to 239,520	31%
239,521 to 498,360	35%
Over 498,361	47%

Tax Credits

All Israeli residents are entitled to 2 credit points (reduction of NIS 430 per month from the tax liability), as well as 0.25 additional points for a working man and 0.75 points for a working woman, which are not taxed.

Working Olim are entitled to additional points on top of that, for a period of three and a half years following their Aliyah. This benefit may be extended whilst carrying out compulsory army service and whilst studying at university or college. Apply for this benefit by filling out the relevant sections of form 101 (filled out upon start of employment and at the beginning of every year through your employer):

Income Tax on Non Residents in Israel

Non Residents are taxed for the Israeli sourced income only. Income includes:

- Employment Income

- Business Income

- Passive Income from Bank Deposits and Savings

Income Tax Return Filing in Israel

A single filer can file the return singly and the married couple can file it jointly or as opted

Tax on Interest

- 10% - 35% is the tax rate on Interest

Tax Rate on Dividends

- 15% - 30% is the tax rate on Dividends

Capital Gain Tax in Israel

- 25% - 30 % tax is the Tax rate on Capital Gain

Corporate Income Tax Rate in Israel for 2018-2019

- 23% is the tax rate from 1 January 2018

Value Added Tax in Israel

17%