Income Types

Israeli tax law classifies income into distinct categories — including employment income, business income, passive income (interest, dividends, rent), and capital gains — each with different rules and rates. Understand how each income type is taxed and how classification affects your overall liability.

  1. Income from Employment (Section 2(2))

    Comprehensive guide to taxable employment income in Israel – what is included, rates, and reporting

  2. Income from Business (Section 2(1))

    Taxation of business and professional income in Israel

  3. Passive Income – Interest, Dividends, Royalties

    Tax rates on passive income from investments in Israel

  4. Rental Income Taxation

    The three taxation routes for residential rental income in Israel – exempt, 10% flat, and normal rates

  5. Foreign Income

    How Israeli residents are taxed on income from abroad – worldwide taxation and foreign tax credits