Personal Tax in Israel

Overview by
Tax Base For Residents and Non-Residents
Israeli residents have to pay personal income tax, social security tax and capital gains tax on a universal basis. The non-residents are taxed on incomes received in Israel.

Tax Rate

The rate is spread over 5 sections.:
Tax schedule, monthly returns in shekels.
Progressive rates from 10% to a maximum of 44% in 2010.
From ILS 1 to 55,080 10%
From ILS 55,081 to 97,920 21%
From ILS 97,921 to 147,000 29%
From ILS 147,001 to 211,200 35%
From ILS 211,201 to 454,680 36%
More than ILS 454,680 45%
Allowable Deductions and Tax Credit
Tax deductions are granted to residents of priority areas and far from the center of the country.
Special Expatriate Tax Regime
Certain expatriates are subjected to a special system with a maximum rate of 25%, other follow the normal system. Foreign residents are exempted from taxes on capital gains resulting from share investments in the Tel-Aviv Stock Exchange.
Capital Tax Rate
Local taxes are imposed on property. There is no wealth or estate tax in Israel.

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  • Dov Weinstein & Co. C.P.A. (Isr)

    Accounting and tax, Israel