Israel's first income tax calculator in English
Dray Accountants are proud to present Israel’s first user friendly income tax calculator in English. It’s simple and easy to use, just fill in some basic information and our system will calculate how much Israeli tax and Bituach Leumi you’ll have to pay.
Don’t want a full income tax calculator? Read our article on Israeli income tax rates and how Israeli income tax works:
A little more about tax in Israel
The Israeli tax law is complex and is full of allowances, deductions and tax credit opportunities. As a tax payer, it’s your responsibility to ensure that you don’t pay more tax than you are legally required to.
One of the best ways to reduce your tax bill is to make sure to claim all the tax deductible expenses available.
Income tax in Israel is a system designed to ensure that taxes are paid consistently throughout the year. If you’re looking to calculate your income tax, an income tax calculator can be a helpful tool to estimate how much you owe based on your earnings.
In Israel, individual taxpayers typically have their taxes deducted directly from their salary each month. Employers handle this process by withholding income tax, national insurance, and health insurance contributions. For self-employed individuals, advance tax payments, or “mikdamot,” are made based on estimated annual income.
Businesses in Israel must also stay compliant by filing VAT returns either monthly or bi-monthly, depending on their revenue. Corporate tax is calculated annually, but advance payments help spread the tax burden evenly throughout the year.
An income tax calculator allows both employees and self-employed individuals to get a clearer understanding of their tax obligations. By inputting your income, the calculator can help estimate how much tax you owe, making it easier to plan your finances and avoid surprises at the end of the year. Accurate forecasting ensures you stay on top of your tax responsibilities and avoid penalties for underpayment.