Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₪ 9,738
Income Tax
- ₪ 940
National Insurance
- ₪ 38.95
Health Insurance
- ₪ 302
Total tax
- ₪ 1,281
Net pay
* ₪ 8,457
Marginal tax rate
13.2%
Average tax rate
13.2%
86.8%
Net pay
13.2%
Total tax
Total tax
Net pay
The Taxberg
₪ 8,457
Net pay
₪ 346
Tax the employer pays
₪ 1,281
Tax you pay
Total tax paid
₪ 1,626
Did you know your employer also pays tax on your salary? It costs the employer ₪ 346 to pay you ₪ 9,738. 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 13.2% tax rate now rises to 16.1%, meaning your real tax rate is actually 2.9% higher than what it seemed at first.
Summary
If you make ₪ 9,738 a year living in Israel, you will be taxed ₪ 1,281. That means that your net pay will be ₪ 8,457 per year, or ₪ 705 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.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
ILS 8895
8.7%
1
Canada
ILS 8625
11.4%
2
Latin America
Country 
Net pay
Average tax
Rank
Mexico
ILS 9492
2.5%
1
Brazil
ILS 8996
7.6%
2
Colombia
ILS 9267
7.8%
3
Puerto Rico
ILS 8964
8.0%
4
Ecuador
ILS 8818
9.5%
5
Guatemala
ILS 8804
9.6%
6
Costa Rica
ILS 8716
10.5%
7
Panama
ILS 8667
11.0%
8
Peru
ILS 8521
12.5%
9
Argentina
ILS 8083
17.0%
10
Chile
ILS 8024
17.6%
11
Uruguay
ILS 7975
18.1%
12
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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.