Israel tax rates
The top rates a resident individual pays on each kind of income, computed by the Sovereign tax engine from its Israel tax profile, with a provisional figure from a published summary where the engine has none yet.
Tier 2 — every figure has an accepted source; some rest on a PwC / Deloitte / KPMG / EY summary (marked †). Sources last checked 7 November 2026. Figures last changed 4 November 2026. Profile last reviewed 2 October 2026.
Scroll across the table to see all tax rates.
| Salary | Capital gains | Dividends | Interest | Rent | Crypto gains | |
|---|---|---|---|---|---|---|
| Israel | 50%† | 30%† | 30%† | 30%† | 50%* | 30% |
* Provisional — not yet verified by the Sovereign engine. rent: from PwC, read 10 November 2026. The engine's own figure replaces a provisional one as soon as the Israel profile carries an accepted source for it.
† This figure rests on a PwC tax summary, not on the statute itself. The summary is the only source on file for it.
Each figure is the tax on one more unit of a very large amount of that income, with every layer the engine models: surtaxes and uncapped social contributions included. It is the top marginal rate, not the average rate you pay on all your income.
What is the top income tax rate in Israel?
The top rate on a salary is 50%. It is the tax on each extra unit of a very high salary, with surtaxes and uncapped social contributions included. The income tax scale alone reaches 47% above ILS 560,280.
How are capital gains taxed in Israel?
The top rate on a long-term capital gain is 30%. The rate does not depend on how long you held the asset.
How are dividends and interest taxed in Israel?
The top rate is 30% on dividends and 30% on interest. Rental income is taxed at up to 50% (provisional).
How is crypto taxed in Israel?
Israel taxes a gain on crypto assets as a capital gain, at up to 30%.
Does Israel tax foreign income?
Yes. Israel taxes its residents on their worldwide income. A tax treaty or a credit for foreign tax can reduce the tax on income from abroad.
Does Israel have a wealth tax?
No. Israel has no recurring national tax on net wealth in our model. Property taxes and taxes on gifts or inheritances are separate.
Does Israel have an exit tax for individuals?
Yes. Israel can tax unrealised gains, or some of them, when a resident individual moves abroad. The conditions depend on the asset and the holding.
What special tax regimes does Israel have?
Our profiles list 3 regimes: Oleh Hadash (New Immigrant) — 10-Year Exemption (up to 10 years); Toshav Chozer Vatik (Veteran Returning Resident) (up to 10 years); Toshav Chozer (Short-term Returning Resident) (up to 5 years). Each has its own conditions.
When do you become tax resident in Israel?
The Israel day test (rebuttable 183-day and 30/425-day presumptions): 183 days this year, or 30 this year and 425 over three years, presume residence. The centre of life can establish residence below either day threshold. A 2025 proposal for conclusive day tests was still a proposal when these sources were checked.
Residence decides whether Israel taxes you on these rates. See the Israel day-count test and count your own days.
Sources
The Israel profile cites 8 sources for these rules, 3 of them from a government or a statute. A provisional figure in the table names its own source under the table.
- Income Tax Ordinance — NII-hosted consolidation, ss. 14, 97(b) and 100A · official, retrieved 2026-11-03
- NII — ordinary resident employees, aged 18 to retirement, 2026 · official, retrieved 2026-11-03
- Government of Israel — Israel Tax Authority — israel — digital-assets · official, retrieved 2026-11-07
- PwC — israel — taxes-on-personal-income · summary, retrieved 2026-11-07
- Income Tax Ordinance [New Version] s. 121B - surtax on high incomes (Nevo consolidated text, as of 27-09-2026) · summary, retrieved 2026-10-02
- Israel Tax Authority - Income tax execution directive 5/2025 (25.2.2025): tax on high incomes under s. 121B, Amendment 276 (gov.il/BlobFolder/policy/inst-05-2025; gov.il refuses fetchers - read from the copy below) · summary, retrieved 2026-10-02
- Israel Tax Authority - Monthly deductions booklet, January 2026 onwards (updated April 2026) (gov.il/he/pages/income-tax-monthly-deductions-booklet, updated 15.04.2026; the PDF read from the copy below) · summary, retrieved 2026-10-02
- PwC israel — income-determination · summary, retrieved 2026-11-07
The model covers the general rules for a resident individual. It does not cover every deduction, credit, tax treaty or local tax, and rules change after the check date above. Did you find an error? Tell us, with the source.
Compare Israel with other countries
Top rates do not show what you would pay. Sovereign applies these rules to your own assets, income and debts, and compares the result across 165 countries. Put Israel side by side with other countries, see every country or try the live demo.
Other countries in Middle East: Iraq, Iran, Jordan, Kuwait, Lebanon, Oman.