Top income tax
50.0%
Worldwide system
Corporate tax
23.0%
VAT
18.0%
standard rate
Tax residency
183 days
58 tax treaties
Israel tax profile
Data year: 2025
- Tax system
- Worldwide Worldwide income taxation for residents. New immigrants and returning residents (10+ years abroad) get 10-year exemption on foreign income and capital gains.
- Top PIT rate
- 50.0%
- Corporate tax rate
- 23.0%
- VAT
- 18.0%
- Capital gains tax
- 25.0% Real capital gains: 25% (30% for substantial shareholders). Real estate appreciation tax varies. Listed securities: 25%. 3% surtax on annual income above ILS 721,560 applies to capital gains too.
- Social security (employee)
- 7.6%
- Social security (employer)
- 7.6%
- Dividend withholding
- 25.0%
- Interest withholding
- 25.0%
- Royalty withholding
- 25.0%
- Treaty count
- 58
Income tax brackets
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| ILS 0 | ILS 84,120 | 10.0% |
| ILS 84,120 | ILS 120,720 | 14.0% |
| ILS 120,720 | ILS 193,800 | 20.0% |
| ILS 193,800 | ILS 269,280 | 31.0% |
| ILS 269,280 | ILS 560,280 | 35.0% |
| ILS 560,280 | ILS 721,560 | 47.0% |
| ILS 721,560 | and above | 50.0% |
Tax flags
Non-Dom Regime
Tax residency
- Days threshold
- 183 days
- Residency rules
- Resident if center of life is in Israel (considering family, economic, and social ties). Presumed resident if present 183+ days in a tax year, or 30+ days in current year and total of 425+ days in current and two preceding years.
- Exit tax
- Yes Deemed disposal of assets at market value upon ceasing Israeli residency.
- CFC rules
- Yes
- Non-dom regime
- New immigrants (Oleh Chadash) and returning residents (10+ years abroad) get 10-year exemption from reporting and taxation on foreign-sourced income, capital gains, and foreign assets.
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- April 30
Sources
- PwC Worldwide Tax Summaries - Israel (accessed Mar 23, 2026) PIT, CIT, VAT, withholding rates, surtax