Income Deductions

Income deductions reduce your taxable income before tax rates are applied, lowering the amount of income subject to tax. This section covers key deductions available to Israeli taxpayers — including donations to approved institutions, pension contributions, academic degree deductions, and other statutory deductions that can significantly reduce your tax burden.

  1. Deduction of pension contributions

    Deduction from income for pension deposits

  2. Deduction of social security fees

    Deduction of social security contributions from income

  3. Tax credit for donations

    35% credit on donations to recognized institutions

  4. deduction of rent expenses

    Deduction of rent expenses for employees

  5. Exemption from interest on deposits

    Tax exemption on interest from bank deposits