Inflation & Linkage

Many Israeli tax amounts are linked to the Consumer Price Index (CPI) and updated annually. Learn how inflation linkage affects tax brackets, deduction limits, credit values, and fines, and understand the difference between nominal and real (inflation-adjusted) calculations in Israeli tax law.

  1. CPI Linkage of Tax Brackets

    How income tax brackets are adjusted annually for inflation in Israel

  2. Real vs. Nominal Interest Taxation

    How Israel taxes the real and inflationary components of interest income differently

  3. Inflation Exemption on Capital Gains

    How the inflationary amount is excluded from taxable capital gains in Israel

  4. Interest and Linkage on Tax Debts

    How unpaid tax debts accrue interest and CPI linkage in Israel