Three Routes
Israeli residents renting out residential property can choose between three tax routes: (1) Exempt – tax-free up to ₪5,654/month (2026); (2) 10% flat tax – on gross income, no expense deductions, paid by Jan 30; (3) Normal – marginal rates with full expense deductions. The choice depends on rental amount, expenses, and the landlord's other income.
Route Comparison
| Route | Tax Basis | Expenses Deductible | NI Applies |
|---|---|---|---|
| Exempt (up to ceiling) | ₪0 tax | No | No |
| 10% flat | Gross rent × 10% | No | No |
| Normal (marginal rates) | Net rent × 10%–50% | Yes (depreciation, interest, repairs) | Yes |
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.