Israel Crypto Capital Gains Tax Calculator
Sales of Bitcoin, Ethereum, and other crypto trigger 25% capital gains tax in Israel for individual investors. Cost basis is index-linked.
| Sale Proceeds | — |
| Original Cost | — |
| Index-Linked Cost Uplift | — |
| Adjusted Cost Basis | — |
| Taxable Gain | — |
| Tax @ 25% | — |
Israel taxes individual cryptocurrency capital gains at a flat 25% rate (section 91 of the Income Tax Ordinance). The cost basis is index-linked using the Israeli CPI from purchase to sale, reducing the taxable gain. Disposals must be reported on Form 1322 by April 30 of the year following the disposal. Source: Israel Tax Authority.
How the Index-Linked Cost Base Works
Israeli capital-gains tax allows the original cost of a non-real asset to be uplifted by the CPI inflation over the holding period. For a 3-year hold with 3.5% average CPI, a ₪40,000 cost basis grows to about ₪44,344 — reducing the taxable gain by ₪4,344 and saving ₪1,086 in tax (25% of uplift). The uplift only applies to the original cost, not to fees or to subsequent purchases of the same asset. For frequent traders, apply the uplift per-lot using FIFO matching.
Distinguishing Capital Gain vs Business Income
The 25% capital-gains rate applies to passive crypto investors. Active traders (multiple daily transactions, sophisticated strategy, dedicated time and infrastructure) may be classified as conducting a business under section 2(1) of the Ordinance — gains taxed at marginal income-tax rates (up to 50% in 2026). Israeli case law applies a "badges of trade" test: frequency, sophistication, financing source, intention at acquisition. Most retail crypto investors qualify as passive — but day-traders, miners, and DeFi yield farmers face scrutiny.
Reporting and Filing Deadlines
All Israeli residents must file Form 1322 (Capital Gains Report) for any crypto disposal in a tax year, regardless of size. Filing deadline is April 30 of the following year, extended to May 31 if filing online via the Tax Authority portal. Failure to report carries a 30% gross-asset penalty plus interest. Withholding tax does not apply — full tax is due on filing. Use a registered Israeli accountant if you have material gains or DeFi activity.
Last updated May 2026. Sources: Israel Tax Authority — Crypto Circular 5/2018, Income Tax Ordinance — Section 91.