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Self-employed in Israel: what will you keep?

Enter your yearly revenue and expenses to estimate your income tax, Bituach Leumi and VAT, and how much to set aside each month.

100% freeNo sign-up2026 rates

A personal tool, not professional advice. These are calculation tables I built for my own decisions and now share freely. Please check every figure and assumption yourself before relying on it.

Your business

₪

Excluding VAT

₪

Recognised expenses, excluding VAT

%

Share of your expenses where you can reclaim VAT

Tax credit points

2.25 points

Disabled child, single parent, alimony, settlement…

  • Israeli resident2.25
  • Your points in 20262.25 = ₪545 / month

Set aside every month

Advances are set by the tax authorities, usually as a share of turnover. This is the amount that matches your expected year.

Income tax₪2,372
Bituach Leumi and health₪2,807
VAT, every two months₪7,740
Total to set aside per month₪9,048

Net income per month

₪14,822

After income tax and Bituach Leumi on a profit of ₪240,000 a year.
Profit per year₪240,000
Income tax-₪28,460
Bituach Leumi and health-₪33,679
Net per year₪177,861

Where your profit goes

  • What you keep₪177,86174%
  • Income tax₪28,46012%
  • Bituach Leumi₪23,06410%
  • Health tax₪10,6154%

Detail

Bituach Leumi deduction (52%)-₪11,993
Taxable income₪228,007
Tax and Bituach Leumi rate25.89%
Rate on your next shekel46.93%
VAT collected₪54,000
VAT on expenses-₪7,560
VAT to pay per year₪46,440
Pension and keren hishtalmut deposits reduce your tax further and are not included. Mandatory pension for the self-employed is also not included.

These calculators are spreadsheets I originally made for my own use, shared as they are to help you think things through. They give estimates based on the published rates for the current tax year and on the assumptions you enter, and they may contain errors or simplifications. They are not tax, legal or financial advice: check all the information yourself and with a licensed accountant, lawyer or mortgage adviser before making any decision.

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