1. Income Tax for Olim (New Immigrants)
Israel’s income tax system is progressive, meaning the more you earn, the higher your tax rate. The rates for individuals in Israel are structured as follows:
Up to 75,480 NIS: 10%
75,481 NIS - 108,360 NIS: 14%
108,361 NIS - 174,000 NIS: 20%
174,001 NIS - 242,000 NIS: 31%
242,001 NIS - 501,960 NIS: 35%
501,961 NIS and above: 47% (but there's also an additional tax on the highest income bracket)
Special Benefits for Olim:
Foreign Income Exemption: Olim are entitled to a 10-year tax exemption on foreign income, which is one of the most important benefits. If you earn income outside of Israel (e.g., from investments, property abroad, pensions, or business activities in another country), you...