Israel Tax Tables 2024 - Tax Rates and Thresholds in Israel
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This page contains the tax table information used for the calculation of tax and payroll deductions in Israel in 2024. These tax tables are used for the tax and payroll calculators published on iCalculator™ IL, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Israel or would like to add to or suggest amendments to the information herein then please contact us.
2024 Tax Tables [Quick Links]
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Israel Personal Income Tax Tables in 2024
The Income tax rates and personal allowances in Israel are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Israel Tax Calculator 2024.
Israel Residents Income Tax Tables in 2024
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 10% | Income from ₪ 0.000.00 | to | ₪ 84,120.00 |
| 14% | Income from ₪ 84,120.01 | to | ₪ 120,720.00 |
| 20% | Income from ₪ 120,720.01 | to | ₪ 193,800.00 |
| 31% | Income from ₪ 193,800.01 | to | ₪ 269,280.00 |
| 35% | Income from ₪ 269,280.01 | to | ₪ 560,280.00 |
| 47% | Income from ₪ 560,280.01 | to | ₪ 721,560.00 |
| 50% | Income from ₪ 721,560.01 | | and above |
Israel Non-residents Income Tax Tables in 2024
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 10% | Income from ₪ 0.000.00 | to | ₪ 84,120.00 |
| 14% | Income from ₪ 84,120.01 | to | ₪ 120,720.00 |
| 20% | Income from ₪ 120,720.01 | to | ₪ 193,800.00 |
| 31% | Income from ₪ 193,800.01 | to | ₪ 269,280.00 |
| 35% | Income from ₪ 269,280.01 | to | ₪ 560,280.00 |
| 47% | Income from ₪ 560,280.01 | to | ₪ 721,560.00 |
| 50% | Income from ₪ 721,560.01 | | and above |
In Israel, social security deductions made by employees are deductible from their gross income for the purpose of calculating taxable income. This means that the contributions towards social security, such as those for health insurance and pension funds, are subtracted from the total earnings before the income tax is calculated. As a result, these social security contributions help reduce the taxable income of employees, potentially lowering their overall tax liability. This approach encourages participation in social security programs while providing immediate tax benefits to employees.
Israel Social Security and Payroll Deduction Rates in 2024
In Israel, the social security system involves contributions from both employees and employers, designed to provide a range of benefits and support to the workforce. This system is managed by the National Insurance Institute of Israel (Bituach Leumi) and covers various aspects of social welfare and security.
Israel Social Security in 2024: Rates for Employers and Employees| Category | Employee | Employer | Total |
|---|
| National Insurance Contributions (NICS Tier 1) | 0.4% | 3.55% | 3.95% |
| NICS Tier 2 | 7% | 7.6% | 14.6% |
| Health Insurance Tax (HIT Tier 1) | 3.1% | 0% | 3.1% |
| HIT Tier 2 | 5% | 0% | 5% |
| Compensation | 0% | 6% | 6% |
| Pension | 6% | 6.5% | 12.5% |
Israel Social Security and Payroll Deduction in 2024: Earnings Thresholds for Employers and Employees| Category | Employee | Employer |
|---|
| Min. | Max. | Min. | Max. |
|---|
| National Insurance Contributions (NICS Tier 1) | n/a | ₪ 90,264.00 | n/a | ₪ 90,264.00 |
| NICS Tier 2 | ₪ 90,264.00 | ₪ 588,360.00 | ₪ 90,264.00 | ₪ 588,360.00 |
| Health Insurance Tax (HIT Tier 1) | n/a | ₪ 90,264.00 | n/a | n/a |
| HIT Tier 2 | ₪ 90,264.00 | ₪ 588,360.00 | n/a | n/a |
| Compensation | n/a | n/a | n/a | n/a |
| Pension | n/a | n/a | n/a | n/a |
The main components of social security in Israel include:
- Health Insurance: Contributions fund Israel's universal healthcare system, providing medical services and coverage to employees and their families.
- Pension: These contributions are allocated towards retirement benefits, ensuring financial support for employees in their later years.
- Disability Insurance: This element offers protection and benefits to employees who are unable to work due to disabilities, providing financial stability and support.
- Unemployment Insurance: Contributions also support employees during periods of unemployment, offering temporary financial assistance while they seek new employment.
- Maternity and Family Benefits: Social security in Israel includes benefits for maternity leave, child allowances, and other family-related support, contributing to the overall welfare of employees’ families.
- Work Injury Insurance: This component provides compensation and benefits to employees who suffer from work-related injuries or illnesses.
Both employees and employers in Israel contribute to these social security programs, with employers generally contributing a higher percentage. These contributions are crucial in maintaining a robust social safety net, providing essential support and services to the Israeli workforce and their families.
Israel VAT Rates in 2024
VAT rates for Israel are reviewed annually, you can use the VAT Calculator to calculate VAT due in Israel or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
Israel VAT Rates| VAT Rate | VAT Description |
|---|
| 0% | VAT Exempt |
| 0% | Zero Rated |
| 17% | Standard Rate |
Historic Tax Tables supported for Israel
The following tax tables are supported by iCalculator™ IL as part of the suite of free tax tools we provide for Israel.