Keren Hishtalmut Tax Savings Calculator IL 2027

Calculate Israeli Keren Hishtalmut 2027 tax savings — employer-matched savings, tax-free withdrawal after 6 years. 7.5% employer + 2.5% employee standard.

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Keren Hishtalmut Mechanics

Joint savings fund. Employer typically 7.5% (tax-deductible to employer). Employee typically 2.5% (pre-tax to employee). 6-year lockup, then completely tax-free withdrawal forever.

2027 Ceiling

Contributions above ₪15,712/month no longer tax-advantaged. Above-ceiling contributions still allowed but lose the magic. Most cost-effective contribution = up to ceiling.

Withdrawal Rules

After 6 years from FIRST contribution: 100% tax-free withdrawal of all gains + principal. Before 6 years: 35% tax on gains + 0% on principal. Don't withdraw early.

Strategic Maximization

Most employees max out at ceiling. Some employers offer above-ceiling matches (still good investment but lose tax). Self-employed: open IndieFund version with same rules.

Source: Israeli Tax Authority Keren Hishtalmut guidelines, ITAS published 2026. Last updated: May 2026.