Definition
Income from employment includes all payments and benefits received in connection with an employer-employee relationship: salary, wages, allowances, bonuses, commissions, tips, benefits-in-kind (company car, phone, meals), stock options, and severance pay. It is taxed at progressive rates from 10% to 50%.
2026 Income Tax Brackets
| Annual Income (₪) | Tax Rate |
|---|---|
| 0 – 84,120 | 10% |
| 84,121 – 120,720 | 14% |
| 120,721 – 179,640 | 20% |
| 179,641 – 242,040 | 31% |
| 242,041 – 504,360 | 35% |
| 504,361 – 721,560 | 47% |
| Above 721,560 | 50% |
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.