Israeli tax calculators
Tax calculator: self employed (Osek Patur /Murshe)
Our Israeli tax calculators provide user-friendly quick estimate of the two main taxes individual freelancers – Osek Patur /Murshe business owners face in Israel:
- Income Tax: This is a progressive tax on your annual income. The tax rate increases as your income rises.
- Bituach Leumi: This is a social security contribution that provides various benefits like healthcare, unemployment insurance, and maternity leave.
Tax Deductions: Israel offers various tax deductions that can lower your taxable income. Our calculator will these details into account (children, pension contributions, charitable donations, etc.). Remember, final tax assessments may vary based on your specific circumstances.
Tax calculator: Payroll (for employers or employees)
Payroll taxes includes contributions made by both employers and employees. Here’s a breakdown of the key terms:
Employer Cost: This is the total amount an employer pays for an employee, including the employee’s gross salary plus the employer’s share of social security and other mandatory contributions (like pension). The employer cost is always higher than the gross salary because they are responsible for these additional contributions.
Gross Salary: This is the employee’s total pay before any taxes or deductions are withheld. It represents the amount agreed upon between the employer and employee for the work performed.
Net Pay: This is the employee’s take-home pay after taxes and deductions (including income tax, Bituach Leumi, pension, and potentially others).
Our payroll tax calculator will calculate all three amounts. However, understanding the breakdown between gross salary, net pay, and employer contributions can be helpful for budgeting and financial planning.
Remember, final tax assessments may vary based on your specific circumstances.
Tax calculator: Purchase tax
Purchase tax is a one-time levy applied to the purchase price of real estate. The tax rate varies depending on several factors, including:
- Whether it’s your only property: Those purchasing your their only property, and Olim Chadash (new immigrants) purchasing their first home in Israel typically benefit from lower purchase tax rates compared to investors or those buying additional properties.
- The property value: Purchase tax is tiered, with higher rates applied to more expensive properties.
Our Israeli tax calculators can give you a good guide. However, for a more accurate estimate of your purchase tax liability, consult with a tax professional.
