Israel Income Tax (Mas Hachnasa) Calculator 2026

Israel Tax Brackets 2026

Progressive brackets indexed to inflation. 2026 (approximate, annual income): up to ILS 84,120 → 10%; 84,120–120,720 → 14%; 120,720–193,800 → 20%; 193,800–269,280 → 31%; 269,280–560,280 → 35%; 560,280–721,560 → 47%; over 721,560 → 50% (incl. high-income surtax). Verify with Israel Tax Authority (rasha.mof.gov.il) for 2026 exact figures.

Credit Points (Nekudot Zikui)

Each credit point = ILS 244 monthly (ILS 2,928 annually for 2026, indexed). Base credits: Israeli resident 2.25 points; woman 0.5 additional. Family credits: each child under 18 — 1 point (additional 1 point for child 1-5, additional 0.5 for child 6-17); spouse not working — 0.25; new immigrant first 18 months — 3.0; soldier discharged from IDF — 1-2 over 36 months. Credits applied as direct tax reduction.

Health Tax (Mas Briut)

Mandatory health insurance contribution under National Health Insurance Law: 3.10% on first ILS 7,522/month (low rate); 5.00% on income above that. Separate from Bituach Leumi (national insurance). Collected by Bituach Leumi institute on behalf of the National Health Insurance Fund. Self-employed compute differently.

Annual Tax Reconciliation

Most salaried workers do NOT need to file annual tax return — employer's PAYE (Tofes 101) settles taxes. Required to file (Tofes 1301) if: (1) self-employed; (2) multiple income sources; (3) annual income over high threshold (~ILS 720K/yr in 2026); (4) rental income above exemption (~ILS 5,654/mo); (5) capital gains exceeding annual exemption. Filing deadline: 30 April (extended to 31 May for online filing).

Sources: Israel Tax Authority (Rasha) Income Tax Ordinance, National Insurance Institute (Bituach Leumi), Health Insurance Law. Last updated: May 2026.