Income tax
Progressive monthly tax brackets, tax credit points, the eligible pension credit and certified locality rate and cap are applied.
Transparent calculation · 2026
How Neto calculates salary
The model provides a transparent estimate for an Israeli employee with one primary employer. Important assumptions and limitations are stated explicitly.
From gross pay to the result
Four calculation layers
Mandatory deductions
National Insurance and health contributions are calculated up to the insured-income cap.
Long-term savings
Employee and employer pension, severance and education-fund deposits remain separate from take-home cash.
Annual package
Annual net cash, savings, equity, benefits and employer cost are presented as distinct values.
Model values
Default assumptions
Amounts are monthly in ILS unless stated otherwise.
- Tax bracket ceilings
- 7,010 · 10,060 · 19,000 · 25,100 · 46,690 · 60,130
- Tax credit point
- ₪242 per month
- Reduced National Insurance ceiling
- ₪7,703
- Maximum insured income
- ₪51,910
- Employee National Insurance and health
- 1.04% + 3.23% reduced · 7% + 5.17% full
- Employer National Insurance
- 4.51% reduced · 7.6% full
- Pension and severance
- 6% employee · 6.5% employer · 8.33% severance
- Education fund cap
- ₪15,712
Public verification
40 frozen test cases
Every change to tax brackets, ceilings or formulas is checked against public reference results. A failed case blocks release.
View all test casesMarket benchmark
How comparison groups are built
Current reports are matched by occupation, occupation family, seniority, experience, region, industry, company size, education, study field, work model and management scope. The cohort broadens only when the exact group is too small.
A group is shown only with at least 10 accepted current reports and sufficient salary diversity. Values and percentiles are rounded, sample size is shown as a band and target scenarios never enter paid-market data.
Primary sources
What the model uses
Israel Tax Authority monthly payroll deductions booklet for 2026 National Insurance rates and amounts for salaried workers Employee form 101 and application for tax benefits Israel Tax Authority position on employee shares and options under Section 102 Israel Tax Authority directive on the tax event for RSU awards Israel Tax Authority company-car use-value calculator Israel Tax Authority: combat-reserve tax credits for 2026-2027 Israel Tax Authority: guide for discharged soldiers and national-civil service graduates Israel Tax Authority: tax benefit for an academic degree or professional certificate (form 119) Israel Tax Authority: eligible localities and tax benefits for 2026 Israel Tax Authority: eligible-locality residency certificate application (form 1312) Israel CBS classifications and code lists
Test the assumptions on your salary
Tax credits and contribution rates can be adjusted in the calculator.