Israel Salary Calculator: Gross to Net
Find out how much of your Israeli gross salary actually reaches your bank account — updated for the 2026 tax year.
If you're moving to Israel, starting a new job, or simply trying to make sense of your first payslip, the gap between your gross salary (the number in your contract) and your net salary (what you actually take home) can be confusing. This calculator walks through every deduction an Israeli employee typically sees: progressive income tax, Bituach Leumi (National Insurance), health insurance, pension contributions, and any voluntary savings like a study fund (keren hishtalmut) or managers' insurance (bituach menahalim).
One of the biggest factors in your take-home pay is your number of credit points (nekudot zikuy) — a fixed monthly reduction applied to your income tax. Every Israeli tax resident gets a baseline of 2.25 points, with more added for things like being a parent or a woman. If you recently made aliyah, you're also entitled to temporary extra credit points as a new immigrant (oleh chadash), on a declining scale for your first few years of residency — worth checking with Bituach Leumi so you don't overpay tax in your early months here.
Enter your monthly gross salary below, adjust your credit points and pension rate to match your situation, and the calculator will show a full breakdown of every deduction and your resulting net salary.
Base salary used to calculate pension and study fund contributions
If you have extra income this month (bonus, overtime), enter it here. Otherwise, leave it blank.
This is the base used to calculate income tax, National Insurance and health insurance.
A benefit in kind added to your salary for tax purposes only (company car, mobile phone) — it raises your tax and National Insurance but is not paid out in cash
Added to this month's taxable income and paid out in your payslip. Pension and study fund are still calculated from your base salary only
Israeli resident: 2.25 | Woman: 2.75 | With children: more
Includes the employee's contribution to a pension fund
Employee contribution of 2.5% of salary, up to a ceiling of ₪15,712 a month — deducted from your net pay with no tax benefit
Guide & more information
Israel income tax brackets for 2026
Israel taxes salary income progressively: each bracket applies only to the slice of income that falls inside it. The 2026 reform widened two middle brackets — the 20% bracket now ends at ₪19,000 (up from ₪16,150 in 2025) and the 31% bracket at ₪25,100 (up from ₪22,440) — which is why many mid-to-high earners saw their net salary rise in January 2026.
| Monthly taxable income (₪) | Tax rate |
|---|---|
| 0 – 7,010 | 10% |
| 7,010 – 10,060 | 14% |
| 10,060 – 19,000 | 20% |
| 19,000 – 25,100 | 31% |
| 25,100 – 46,690 | 35% |
| 46,690 – 60,130 | 47% |
| Above 60,130 | 47% + 3% surtax (50% total) |
A worked example: ₪15,000 gross
Take a single employee with the baseline 2.25 credit points earning ₪15,000 a month (ignoring pension for a moment to keep the arithmetic visible):
- Income tax before credits: 10% on the first ₪7,010 (₪701) + 14% on the next ₪3,050 (₪427) + 20% on the remaining ₪4,940 (₪988) = ₪2,116.
- Credit points: 2.25 × ₪242 = ₪544.50 off the tax bill → income tax of about ₪1,572.
- National Insurance: 1.04% up to ₪7,703 (₪80) + 7% on the rest (₪511) = about ₪591.
- Health insurance: 3.23% up to ₪7,703 (₪249) + 5.17% on the rest (₪377) = about ₪626.
Total deductions ≈ ₪2,789, so net pay lands around ₪12,210 — roughly 81% of gross. Add a typical 6% employee pension contribution (₪900, partly offset by a tax credit) and take-home settles near ₪11,600. The calculator above runs this exact math for your own numbers, including pension, study fund, and bonus months.
Payslip vocabulary for English speakers
Israeli payslips are in Hebrew, and HR conversations mix Hebrew and English freely. These are the terms you'll actually meet:
- Bruto / Neto — gross / net salary.
- Tlush maskoret — your monthly payslip.
- Tofes 101 — the tax declaration form you fill in for every employer each January (and after life events like a birth). Your credit points come from here.
- Teum mas — a tax coordination you file when you have more than one employer, so each withholds the right amount.
- Keren hishtalmut — the study fund: a voluntary savings benefit (7.5% employer / 2.5% employee) with unique capital-gains tax exemption.
- Bituach menahalim — "managers' insurance", an insurance-based alternative to a pension fund.
- Shovi / zkifat hatava — a benefit in kind (company car, phone) added to your taxable income even though it isn't paid in cash.
Frequently Asked Questions
What is the difference between gross and net salary in Israel?
Your gross salary (sachar bruto) is the full amount your employer agrees to pay before any deductions — it's the number written in your employment contract. Your net salary (sachar neto) is what actually lands in your bank account after income tax, Bituach Leumi (National Insurance), health insurance, and pension contributions are withheld. The gap between the two is typically 20-40%, depending on how much you earn.
How is income tax calculated in Israel?
Israel uses a progressive tax bracket system. As of 2026, monthly income up to roughly ₪7,010 is taxed at 10%, the next bracket up to ₪10,060 at 14%, up to ₪19,000 at 20%, up to ₪25,100 at 31%, up to ₪46,690 at 35%, and up to ₪60,130 at 47%. Above that (over about ₪721,560 a year), an additional 3% surtax applies, bringing the top marginal rate to 50%. Each bracket only taxes the portion of income that falls within it — you don't jump to a higher rate on your entire salary.
What are credit points (nekudot zikuy) — and do new immigrants get extra ones?
A credit point (nekudat zikuy) is a fixed monthly discount off your income tax bill — worth about ₪242/month (₪2,904/year) in 2026. Every Israeli tax resident starts with 2.25 points, women get an extra 0.5 (2.75 total), and there are additional points for children, single parents, and discharged soldiers. New immigrants (olim chadashim) are entitled to extra credit points on a declining scale for roughly their first three and a half years of Israeli residency — worth several additional points in the early months, tapering down over time. If you're a new oleh, check your exact entitlement with Bituach Leumi or a tax advisor, then enter your total points in the calculator above.
How much are Bituach Leumi and health insurance deductions?
Bituach Leumi (National Insurance) is charged in two tiers: about 1.04% up to a monthly threshold of roughly ₪7,703, and about 7% on the portion above that (up to a higher ceiling). Health insurance (bituach briut) works similarly: about 3.23% up to the same threshold and about 5.17% above it. Combined, an employee typically pays around 10% of their gross salary toward these two. Your employer also contributes separately on top of your salary, which doesn't reduce your paycheck but does add to their total cost.
Does contributing to a pension fund lower my tax?
Yes. Your own contribution to a pension fund (typically 6-7% of salary) is deducted from your taxable income before tax is calculated, and you also receive an additional tax credit worth about 35% of that contribution amount, up to a cap. In practice, contributing ₪900 a month can save roughly ₪315 a month in tax (about ₪3,780 a year) — on top of the retirement savings itself.
What's the difference between employer cost and gross salary?
Employer cost (sometimes called CTC, Cost to Company) is everything your employer spends on you: your gross salary plus their share of pension (around 6.5%), severance accrual (6-8.33%), study fund (keren hishtalmut, up to 7.5%), their portion of National Insurance, and more. Total employer cost typically runs 25-30% higher than your gross salary. Your employment contract states your gross salary, not the employer's total cost — use our Employer Cost calculator to see the full picture.
This calculator is for estimation purposes only and does not constitute legal, accounting, or financial advice. For accurate figures specific to your situation, please consult a licensed accountant or tax advisor.