Halacha Savings Deposit Tax Calculator 2027 — Israel
Israeli pikadon (savings deposits) face 15-25% capital gains tax depending on indexation. Halacha-compliant pikadon (avoiding interest from non-permissible sources) often has different yield structure. This tool computes after-tax yield for 2027.
Israeli Pikadon Tax Structure
Israeli Tax Authority (ITA) imposes capital gains tax on savings deposit interest: 25% on non-indexed (regular) pikadon, 15% on CPI-indexed pikadon (and only on real return above inflation). Indexed deposits often win in high-inflation periods because tax base is smaller despite lower headline rate.
Halacha-Compliant Pikadon
Religious Jewish investors may avoid interest from non-permissible sources. Banks structure halacha pikadon as profit-sharing arrangements (heter iska) — economically equivalent to interest but technically permitted under halacha. Tax treatment from ITA is identical regardless of religious structure.
Tax-Optimization Strategy
Three plays: (1) Use CPI-indexed pikadon during high inflation — tax base shrinks. (2) Use tax-deferred accounts (keren hishtalmut, kupot gemel) where appropriate — defers tax entirely. (3) For long-horizon investors, consider Israeli ETFs (also subject to 25% capital gains but with deferral and active management benefits).
Source: Israel Tax Authority (Rashut HaMisim) 2027 capital gains schedule, Bank of Israel rates. Last updated: May 2026.