Income tax calculator Israel
Find out how much your salary is after tax
Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₪ 42,001
Income Tax
- ₪ 14,744
National Insurance
- ₪ 1,369
Health Insurance
- ₪ 1,067
Total tax
- ₪ 17,180
Net pay
*
₪ 24,821
Marginal tax rate
50.0%
Average tax rate
40.9%
59.1%
Net pay
40.9%
Total tax
Total tax
Net pay
The Taxberg
₪ 24,821
Net pay
₪ 1,585
Tax the employer pays
₪ 17,180
Tax you pay
Total tax paid
₪ 18,764
Did you know your employer also pays tax on your salary? It costs the employer ₪ 1,585 to pay you ₪ 42,001. In other words, every time you spend ₪ 10 of your hard-earned money, ₪ 4.47 goes to the government.
Real tax rate
43.1%
So, with you and the employer both paying tax, what used to be a 40.9% tax rate now rises to 43.1%, meaning your real tax rate is actually 2.2% higher than what it seemed at first.
Summary
If you make ₪ 1,008,024 a year living in Israel, you will be taxed ₪ 412,314. That means that your net pay will be ₪ 595,710 per year, or ₪ 49,642 per month. Your average tax rate is 40.9% and your marginal tax rate is 50.0%. 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 ₪ 50, hence, your net pay will only increase by ₪ 50.
Bonus Example
A ₪ 1,000 bonus will generate an extra ₪ 500 of net incomes. A ₪ 5,000 bonus will generate an extra ₪ 2,500 of net incomes.
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.