Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₪ 3,242
Income Tax
- ₪ 408
National Insurance
- ₪ 131
Health Insurance
- ₪ 134
Total tax
- ₪ 673
Net pay
* ₪ 2,569
Marginal tax rate
29.6%
Average tax rate
20.8%
79.2%
Net pay
20.8%
Total tax
Total tax
Net pay
The Taxberg
₪ 2,569
Net pay
₪ 187
Tax the employer pays
₪ 673
Tax you pay
Total tax paid
₪ 860
Did you know your employer also pays tax on your salary? It costs the employer ₪ 187 to pay you ₪ 3,242. In other words, every time you spend ₪ 10 of your hard-earned money, ₪ 2.65 goes to the government.
Real tax rate
25.1%
So, with you and the employer both paying tax, what used to be a 20.8% tax rate now rises to 25.1%, meaning your real tax rate is actually 4.3% higher than what it seemed at first.
Summary
If you make ₪ 168,584 a year living in Israel, you will be taxed ₪ 35,002. That means that your net pay will be ₪ 133,582 per year, or ₪ 11,132 per month. Your average tax rate is 20.8% and your marginal tax rate is 29.6%. 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 ₪ 29.60, hence, your net pay will only increase by ₪ 70.40.
Bonus Example
A ₪ 1,000 bonus will generate an extra ₪ 704 of net incomes. A ₪ 5,000 bonus will generate an extra ₪ 3,520 of net incomes.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
ILS 133640
20.7%
1
Canada
ILS 120726
28.4%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
ILS 152118
9.8%
1
Puerto Rico
ILS 142750
15.3%
2
Costa Rica
ILS 141384
16.1%
3
Chile
ILS 138651
17.8%
4
Ecuador
ILS 136665
18.9%
5
Panama
ILS 133714
20.7%
6
Colombia
ILS 130346
22.7%
7
Peru
ILS 126553
24.9%
8
Brazil
ILS 124326
26.3%
9
Mexico
ILS 123920
26.5%
10
Uruguay
ILS 115995
31.2%
11
Argentina
ILS 109554
35.0%
12
Show more
Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
ILS 160155
5.0%
1
Qatar
ILS 160155
5.0%
2
Bahrain
ILS 155097
8.0%
3
Oman
ILS 155097
8.0%
4
Saudi Arabia
ILS 151726
10.0%
5
Kuwait
ILS 150040
11.0%
6
Israel
ILS 133582
20.8%
7
Egypt
ILS 127472
24.4%
8
Lebanon
ILS 127146
24.6%
9
Turkey
ILS 98902
41.3%
10
Show more
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.