| Monthly Income (NIS) | Annual Income (NIS) | Tax Rate |
| 0 to 6,220 | 0 to 74,640 | 10% |
| 6,221 to 8,920 | 74,641 to 107,040 | 14% |
| 8,921 to 14,320 | 107,041 to 171,840 | 20% |
| 14,321 to 19,900 | 171,841 to 238,800 | 31% |
| 19,901 to 41,410 | 238,801 to 496,920 | 35% |
| 41,411 to 53,333 | 496,921 to 640,000 | 47% |
| Over 53,333 | Over 640,000 | 50% |
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):
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
- 25% - 32% is the tax rate on Interest
Tax Rate on Dividends
- 25% - 32% is the tax rate on Dividends
- 25% - 32 % tax is the Tax rate on Capital Gain
- 24% is the tax rate from 1 January 2017
- 23% is the tax rate from 1 January 2018