Israel 2026 Tax Calculator — Repatriate / Returning
⚠️ Disclaimer. This calculator is for educational and informational purposes only and reflects simplified assumptions for the 2026 tax year. It does not constitute legal or tax advice, does not establish a client–advisor relationship, and must not be relied upon as a substitute for professional guidance. Results are provided "as is" without warranties of accuracy or completeness and may change if laws or inputs change. We do not collect or store any personal data entered into this tool. Author is not a licensed tax consultant in Israel. Before making decisions or filings, consult a certified tax advisor or the Israel Tax Authority.
1) Profile & Residency
Affects base credit‑points and child credits for ages 6–17.
Count months where you're resident on the last day of the month (prorates monthly credits).
Type digits only; dots auto‑insert (e.g., 15052024 → 15.05.2024). Used for oleh credits & foreign‑income exemptions.
Years since arrival by 31‑12‑20260
🏠 2026 Oleh Incentive active — New immigrants arriving in 2026: 0% income tax on the first ₪1,000,000 of earned income (salary + business profit). Capital gains / dividends / 10% rental track keep their own regimes; surtax (mas yesef) and BL/Health still apply. Verify eligibility with a tax advisor.
2) Israeli Income
Gross salary before tax. Toggle monthly/annual.
Osek type:
Patur ≈ small business (below the annual cap, no VAT). Murshe = VAT‑registered. 2026 cap is approx. ₪122,833 — verify the current threshold on the Israel Tax Authority / VAT site before relying on it.
Total invoices/receipts before expenses. Patur: mind the cap (~123k ₪ in 2026).
Dividends, interest, capital gains from Israeli sources. Simplified at flat 25% (non‑controlling shareholder). Real rate can differ: controlling shareholder (30%), specific instruments (bonds, CPI‑linked), mas‑yesef surtax, and treaty/WHT rules may apply.
Flat 10% tax track (no expense deductions on this track). Leave 0 if not applicable.
3) Foreign Income
All amounts in ₪/year. Convert foreign currency to NIS at the average annual exchange rate.
Work physically performed abroad. As a rule of thumb, remote work done from Israel is Israeli‑source — but sourcing is highly fact‑specific (place of performance, employer residence, permanent establishment / contractor structure, applicable tax treaty). Confirm with a tax advisor.
Interest, dividends, rent, royalties from assets abroad.
Securities/real estate abroad.
For returning residents (6–10y): both passive income and capital-gains exemptions require the underlying asset to have been acquired before re-establishing Israeli residency.
Exempt (active / passive / cap)0 / 0 / 0
Taxable (active / passive / cap)0 / 0 / 0
Offset against Israeli tax on taxable foreign income (not below 0).
4) Deductions (reduce taxable base)
From payslips (תלוש): employee share, typically 6–7% of salary. Deductible portion.
≈4.45% up to ~6,885 ₪/mo and 12.55% above, applied to self‑employed profit.
Voluntary contributions (קופת גמל עצמאיים), if any.
Certain insurances, recognized losses (simplified).
Earned income before deductions0
− Total deductions0
= Taxable base (earned)0
5) Credits (reduce tax due)
~3.0 pts/child (averaged across ages 0–5). Prorated by months resident.
Tick if spouse had no taxable income in 2026 (simplified).
New for 2026. Combat reservists: up to 48 pts (₪11,616) for 110+ days. Check ITA for your entitlement.
Academic degree (1 pt for BA, 0.5 for MA), army/national service, age 18 child (0.5 mother / 0 father), etc.
Base monthly points0
Oleh auto points (annual)0
Total annual points0
Credit value (points)0
6) Bituach Leumi / Health
Use actual YTD from payslips (employees) or portal/bank statements (self‑employed).
Estimated BL/Health (auto)0
7) Results
Tax on earned income (progressive)0
Tax on capital income (25%)0
Tax on rental income (10%)0
Surtax (3% + 2%)0
− 2026 Oleh incentive0
− Credits & offsets0
Net income tax0
+ BL/Health0
= All‑in (tax + BL)0
Effective rate vs taxable0%
Effective rate vs total reported0%
All‑in (incl. BL) vs reported0%
≈ Monthly net after tax & BL0
Approximate: (total reported income − all‑in tax & BL) ÷ 12. Includes every income source you entered — salary, business, capital, rental and foreign — not just payroll.
• For 2026 demo only. Numbers are rough estimates. Always confirm with a tax advisor / ITA.
• Inputs with "₪/year" expect annual ILS amounts.