📊
Tax Overview
Income tax, VAT, and key benefits for Tel Aviv
🌟 New Immigrant (Oleh) Tax Exemption
New immigrants enjoy a 10-year exemption on foreign-sourced income — dividends, foreign salary, rental income abroad. This is one of the most generous expat tax regimes in the world.
🟢Israel Tax Authority
Anglo-Saxon Community Benefit
If employed by a foreign company remotely, income may qualify for reduced tax treatment under the Oleh exemption for the first 10 years.
🟢Israel Tax Authority
Income tax brackets (annual)
| Income range | Rate |
|---|---|
| ₪0 – ₪77,400 | 10% |
| ₪77,401 – ₪110,880 | 14% |
| ₪110,881 – ₪178,080 | 20% |
| ₪178,081 – ₪247,440 | 31% |
| ₪247,441 – ₪514,920 | 35% |
| ₪514,921 – and above | 50% |
VAT
18%
🟢Israel Tax Authority 2025
Social security
12% employee / 7.5% employer
🟢Bituach Leumi 2025
🤝 Double tax treaty
Israel has tax treaties with 55+ countries to prevent double taxation. Depending on your home country, income may only be taxed in one jurisdiction.
USAUKGermanyFranceCanadaAustraliaNetherlands
🟢Israel Tax Authority — Tax Treaties