Israel income tax

Israel tax calculator

Enter your income to estimate what you would pay in Israel, as an employee or running your own company, and see the best-value cities. Get the full breakdown plus a vetted advisor by email.

How much is income tax in Israel?

Israel taxes personal income at rates up to 50%. New immigrant: 0% on foreign source income and gains for 10 years. Outside that regime, worldwide taxation.

Compiled by MyNomadWorld for Israel and currently being re-verified against primary sources. Confirm with a local adviser before relying on it.

Israel expat & digital-nomad tax regime

Under the Oleh Chadash 10-year exemption regime, a qualifying new resident or foreign-income remote worker pays an effective rate of about 0% instead of the 50% headline. This benefit is temporary or conditional (it runs for a limited period or requires you to stay non-resident), so treat it as a head start, not a permanent zero.

Official source: PwC Israel

Capital gains, wealth & property tax

• Capital gains: 25% effective (30% for a substantial shareholder of 10% or more); a 3% surcharge on high income can raise it to 28/33%
• Wealth tax: Israel has no net wealth tax.

Inheritance & gift tax in Israel

Israel has no inheritance tax and no estate tax. No tax for any heir.

Corporate tax & VAT

The standard corporate profits tax is 23%.

How to become a tax resident of Israel

The centre of life test. Residence is presumed with 183 or more days in the year, or 30 or more days in the year and 425 or more days across that year and the two before it.

Cost of living & lifestyle

Cost of living is about 101% of the US level, with average purchasing power near $59k (PPP). Pick a city below to see its monthly climate and cost.

Banking in Israel

You will want a local or multi-currency account for rent, bills and getting paid. See our guide to the best banks in Israel.

For receiving income and moving money the day you arrive, Wise lets you hold and convert 40+ currencies and get paid like a local. Open a free Wise account →

Wise link is an affiliate link; we may earn a commission at no cost to you.

Climate & cost by city

Average monthly temperature (°C) and rainfall. Climate: Open-Meteo ERA5; cost of living: World Bank PPP (same-year pairing), omitted where unavailable.

Israel tax treaties

Israel maintains around 59 double taxation treaties in force. They generally follow the OECD Model Convention and reduce withholding tax on cross-border dividends, interest and royalties, so the same income is not taxed twice when you move, invest or earn across borders. That is a broad network, useful for internationally mobile earners and investors.

Major treaty partners

Chips with a link open the full withholding-tax detail for that treaty pair.

Approximate size of the DTA network; confirm the specific treaty and its terms before relying on it.

Israel tax treaty guides

Detailed double-tax-treaty guides (withholding rates on dividends, interest and royalties) are available for 17 of Israel's partners:

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