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Israeli Tax Authority — Income tax rates and filing requirements for individuals in Israel

Source: https://www.nbn.org.il/life-in-israel/finances/taxes/taxation-in-israel-general-information · 2026

Filing Status

2025 Marginal Tax Rates on Earned Income (per individual)

Annual Income (NIS) Tax Rate
0 – 84,120 10%
84,121 – 120,720 14%
120,721 – 193,800 20%
193,801 – 269,280 31%
269,281 – 560,280 35%
550,281 – 721,560 47%
720,561 and up 50%

2025 Tax Rates on Non-Earned Income

Income Type Rate
Capital gains Usually 25–30%
Interest Usually 15–28%
Dividends Usually 25–33%
Rental income 0%, 10–13%, 15–18%, or marginal rate
Pension income Usually the marginal tax rate
Inheritance and gifts None

Rates vary based on factors such as whether the individual is over age 60, holds 10%+ shares in a company, or uses different rental income tax tracks.