Income Tax Calculator

Calculate your annual and monthly income tax by current brackets, including credit points.

An income tax calculator (Machshevon Mas Hachnasa) estimates how much tax you owe in Israel based on your annual income, deductions, and credit points. It is particularly useful for freelancers and self-employed workers who need to plan their tax payments throughout the year.

What the Calculator Computes

The calculator applies Israel's progressive tax brackets to your taxable income, factors in your tax credit points (Nekudot Zikuy), accounts for deductions like pension contributions and recognized business expenses, and calculates National Insurance and health tax. The result shows your estimated total tax liability and effective tax rate.

For Employees vs. Self-Employed

Employees can use the calculator to verify their payslip deductions or estimate refunds. Self-employed workers use it to plan advance tax payments (Mikdamot) and ensure they set aside enough throughout the year. Freelancers who forget to plan for taxes often face a painful surprise at annual filing time.

Key Inputs to Get Right

Your total annual income from all sources, the number of tax credit points you are entitled to, pension contribution amounts (which are deductible), recognized business expenses if self-employed, and any other income like rental or investment income. The more accurate your inputs, the more reliable the estimate.

Planning Ahead With the Calculator

Run the calculator at the beginning of each tax year and again mid-year to check your position. If you are self-employed, compare the calculator's estimate to the advance payments the Tax Authority has set for you. If the advance payments are too high or too low, you can request an adjustment to avoid overpaying or owing a lump sum at year end.

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The information on this page is for educational purposes. Please consult a professional before making financial decisions.

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Frequently asked

+−Who benefits most from an income tax calculator?

Freelancers and self-employed workers who need to plan advance tax payments throughout the year. Employees can also use it to verify payslip deductions or estimate potential refunds.

+−What inputs do I need for the calculator?

Total annual income from all sources, number of tax credit points, pension contribution amounts, recognized business expenses if self-employed, and any rental or investment income.

+−How often should I run the calculator?

At the beginning of each tax year and again mid-year. Self-employed workers should compare the estimate to their advance payments (Mikdamot) and request an adjustment if the amounts are too high or low.

+−Does the calculator include National Insurance and health tax?

Some calculators show only income tax, while comprehensive ones include National Insurance (Bituach Leumi) and health tax deductions. Choose a calculator that shows the complete picture for accurate planning.

+−Can I use the calculator for rental income?

Yes, if you have rental income you can enter it to see the tax implications. Remember that residential rental income below a certain threshold may be exempt, and above that you can choose between a flat 10% rate or progressive taxation.

+−How do tax credit points affect the calculator results?

Credit points directly reduce your tax liability. Enter the correct number of points for your situation — residency, gender, children, new immigrant status, academic degree — to get an accurate estimate.

+−What if I have income from multiple sources?

Enter your total annual income from all sources — salary, freelance work, rental income, and investments. The calculator applies progressive tax brackets to the combined total, which may push you into higher brackets.