Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₪ 4,055
Income Tax
- ₪ 391
National Insurance
- ₪ 16.22
Health Insurance
- ₪ 126
Total tax
- ₪ 533
Net pay
* ₪ 3,522
Marginal tax rate
13.2%
Average tax rate
13.1%
86.9%
Net pay
13.1%
Total tax
Total tax
Net pay
The Taxberg
₪ 3,522
Net pay
₪ 144
Tax the employer pays
₪ 533
Tax you pay
Total tax paid
₪ 677
Did you know your employer also pays tax on your salary? It costs the employer ₪ 144 to pay you ₪ 4,055. In other words, every time you spend ₪ 10 of your hard-earned money, ₪ 1.67 goes to the government.
Real tax rate
16.1%
So, with you and the employer both paying tax, what used to be a 13.1% tax rate now rises to 16.1%, meaning your real tax rate is actually 3% higher than what it seemed at first.
Summary
If you make ₪ 4,055 a year living in Israel, you will be taxed ₪ 533. That means that your net pay will be ₪ 3,522 per year, or ₪ 293 per month. Your average tax rate is 13.2% and your marginal tax rate is 13.2%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of ₪ 100 in your salary will be taxed ₪ 13.15, hence, your net pay will only increase by ₪ 86.85.
Bonus Example
A ₪ 1,000 bonus will generate an extra ₪ 869 of net incomes. A ₪ 5,000 bonus will generate an extra ₪ 4,343 of net incomes.
North America
Country 
Net pay
Average tax
Rank
Canada
ILS 3851
5.0%
1
USA
ILS 3704
8.7%
2
Middle East
Country 
Net pay
Average tax
Rank
Saudi Arabia
ILS 4055
0.0%
1
United Arab Emirates
ILS 3852
5.0%
2
Qatar
ILS 3852
5.0%
3
Bahrain
ILS 3731
8.0%
4
Oman
ILS 3731
8.0%
5
Kuwait
ILS 3609
11.0%
6
Israel
ILS 3522
13.2%
7
Lebanon
ILS 3520
13.2%
8
Egypt
ILS 3434
15.3%
9
Turkey
ILS 3388
16.5%
10
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NOTE* Withholding is calculated based on the tables of Israel, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.