Overview
Israeli individual income tax rates for 2026 range from 10% to 50% across seven brackets, plus a 3% surtax on annual income exceeding ₪721,560. The brackets are updated annually based on the Consumer Price Index. The system is progressive – only income within each bracket is taxed at that bracket's rate.
2026 Income Tax Brackets
| מ- | עד | שיעור מס |
|---|---|---|
| 0 ₪ | 84,120 ₪ | 10% |
| 84,120 ₪ | 120,720 ₪ | 14% |
| 120,720 ₪ | 193,800 ₪ | 20% |
| 193,800 ₪ | 269,280 ₪ | 31% |
| 269,280 ₪ | 560,280 ₪ | 35% |
| 560,280 ₪ | 721,560 ₪ | 47% |
| 721,560 ₪ | ומעלה | 50% |
Surtax (Mas Yesef)
An additional 3% tax applies to individuals whose total annual income from all sources exceeds ₪721,560. This includes: employment, business, rental, interest, dividends, and capital gains. The surtax brings the maximum marginal rate to 53%.
Calculation Example
Annual taxable income: ₪350,000
84,120 × 10% = ₪8,412
36,600 × 14% = ₪5,124
58,920 × 20% = ₪11,784
62,400 × 31% = ₪19,344
107,960 × 35% = ₪37,786
Total tax: ₪82,450
Credit points (2.25): ₪6,534
Net tax: ₪75,916 (21.7% effective rate)
בסיס חוקי
- Section 121 – Income Tax Ordinance
- Section 121B – Surtax
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.