Income tax calculator

This educational tool is free to use without an account. Change one input at a time, compare results and read the example and assumptions below. Results are illustrations, not forecasts or personal offers.

Marginal tax applies to the last slice of income. Effective tax is total tax divided by income. They are different numbers.

Educational calculators only. Assumptions are not a quote or financing approval.

Using the result

Start with fictional amounts that are easy to check without a calculator. Write down the inputs and the first result, then change just one assumption. This helps you identify what caused the difference instead of changing several factors together. Check whether amounts are monthly or annual, which currency is used and which costs are included. Two decimal places do not make an assumption certain. Finally, explain the result in your own words, identify missing information and note what you would need to verify before using real money.

Explanation and example

Israel’s April 2026 monthly earned-income bands are: 10% up to ILS 7,010; 14% on the next slice up to 10,060; 20% up to 19,000; 31% up to 25,100; 35% up to 46,690; and 47% above. A 3% surtax applies to the excess above the equivalent of ILS 60,130 per month when income is constant. Tax is annual; annual thresholds are 12 times these amounts. Moving up does not change tax on earlier slices. One credit point reduces tax by ILS 242 per month or 2,904 per year. Entitlement must be checked; deductions reduce taxable income, whereas credits reduce tax. Unused points are not cash. National insurance, health, pensions and other relief are separate.

Practice example

At ILS 15,000 taxable monthly income: 7,010 × 10% = 701; 3,050 × 14% = 427; 4,940 × 20% = 988. Tax before credits is 2,116. Assuming 2.25 points, deduct 544.50: tax is 1,571.50. The marginal rate is 20%, but the effective rate is about 10.48%. At ILS 20,000 only 1,000 is in the 31% band: tax before credits is 3,226 and after the same credit, 2,681.50.

Use Money lab to compare 19,000 and 20,000 with the same points. Which slice changed?

Check your understanding

At ILS 20,000 monthly, how much falls in the 31% band in 2026?

What remains of 2,116 tax with 2.25 points worth 242 each?

Full lesson