Israel income tax law for 2024 Israel Income Tax Rates for 2024

Israel Income Tax Brackets

Tax Bracket (yearly earnings) Tax Rate (%)
0 - 57,240 10.00%
57,240 - 101,640 14.00%
101,640 - 152,640 23.00%
152,640 - 219,000 30.00%
219,000 - 472,080 33.00%
472,080 and up 45.00%

Israel has a bracketed income tax system with six income tax brackets, ranging from a low of 10.00% for those earning under 57,240 to a high of 45.00% for those earning more then 472,080 a year.

How does the Israel Income Tax compare to the rest of the world?

The maximum income tax rate in Israel of 45.00% ranks Israel as one of the ten highest taxed countries in the world. Countries with similar tax brackets include Portugal with a maximum tax bracket of 46.00%, Austria with a maximum tax bracket of 50.00% and United Kingdom with a maximum tax bracket of 50.00%. Keep in mind that our ranking measures only nationwide income taxes, and does not account for local income taxes at state, province, or municipal levels.

Israel Income Taxes
Maximum Income Tax Income Tax Allowance World Tax Rank
45.00% 5,535 ($0 USD) 6th of 34

What is the Israel Income Tax?

Israel's personal income tax is a bracketed income tax that must be paid yearly by all citizens to the government of Israel. Failure to pay, or underpayment of, the Israel income tax can result in high fees, fines, or jail time.

In addition to Israel's income tax, other taxes may apply to wages or profits earned, including social services, medical care, and capital gains taxes.

Israel Income Tax Allowance

Israel provides most taxpayers with an income tax allowance of 5,535, which can be kept as a tax-free personal allowance. Israel's tax credit is a basic wastable tax credit, non-tapered, available to all (single) taxpayers without dependents.

A tax credit is a fixed amount of money that may be kept by taxpayers without paying any income taxes. Generally, a tax credit is subtracted from your gross income before your taxable income is calculated.

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