Palestine (inside the Green Line) take-home pay and income tax calculator 2026

Calculated with 2026 rules for a single, full-time employee whose salary is their only income.

Income tax rates in Palestine (inside the Green Line) 2026

The brackets are annual and apply to employment income for 2026, after the 20% and 31% bands were widened by the Economic Efficiency Law 2026. From the resulting tax, the following are deducted: tax credit points (2.25 points for a resident and 2.75 for a woman, each point worth 242 shekels a month), a 35% credit on the pension contribution, and the qualifying town credit if any. A 3% surtax is added on taxable income above 721,560 shekels a year.

Social insurance rates

Worked example

An employee earning 13,000 new shekels a month, 156,000 a year:

• Income tax before credits is 20,592 shekels. Then deducted: credit points 2.25 × 2,904 = 6,534 shekels, a 35% credit on the pension contribution of 2,852 shekels.
• The 6% pension contribution goes into a pension fund in your name, and the employer adds 6.5% for the pension and 6% for the severance component. It is savings, not a tax, but it is deducted from your salary.

Key tax facts about Palestine (inside the Green Line)

Tax year

Calendar year, 1 January to 31 December

Income tax bands 2026

10% up to 7,010 shekels a month, 14% up to 10,060, 20% up to 19,000, 31% up to 25,100, 35% up to 46,690, and 47% above that

Credit points (zikui)

2.25 points for every resident and an extra 0.5 for a woman. Each point is worth 242 shekels a month (2,904 a year)

National insurance and health tax

Paid by the employee: 4.27% up to 7,703 shekels a month and 12.17% above that, up to 51,910 shekels

Compulsory pension

6% from the employee, and 6.5% pension plus 6% severance from the employer, on pay up to the average wage of 13,769 shekels a month

How it is collected

The employer deducts income tax and national insurance from salary every month and pays them over

Tax residency

Based on centre of life, with residency presumed after 183 days in the year, or 30 days in the year and 425 days in total over 3 years

Tax refunds

You can claim back overpaid tax for the last six years

Value added tax

18% since 1 January 2025

Corporate tax

23%

Tax guide to Palestine (inside the Green Line) Living in Palestine (inside the Green Line) in figures Tax authority and filing deadline End-of-service gratuity in Palestine (inside the Green Line)

Compare Palestine (inside the Green Line) with other countries

Official sources

Every figure in this calculator comes from these sources, last checked on 2 October 2026. The brackets, credit point value, surtax and town rates come from the tax authority's guide for 2026, and the national insurance rates and ceilings come directly from the National Insurance Institute. The pension credit mechanism (35% on a contribution of up to 7% of qualifying income, with a ceiling of 9,700 shekels a month) is taken from the text of section 45A in a private legal database, and its ceiling from the tax authority's guide. The pension rates of 6%, 6.5% and 6% come from a National Insurance Institute study, because the text of the 2016 amended extension order was not available on a government website. The calculator assumes a single resident employee with no children, with one salary for the whole year, contributing to a pension on the full salary up to the average wage. It does not count credit points for children or academic degrees, or the optional study fund (keren hishtalmut).

1. Tax authority: guide to calculating income tax on salaries for 2026, updated April 2026 (brackets after the widening, the surtax, credit point value of 242, qualifying income ceiling of 9,700, average wage of 13,769, the list of qualifying towns and their rates, severance pay exemption of 13,750) Official source · checked 2 October 2026
2. Income Tax Ordinance, consolidated text (sections 1, 11, 34, 36, 36A, 45A, 91, 121B, 125B, 126 and 160), Nevo legal database Secondary source used to cross-check · checked 2 October 2026
3. National Insurance Institute: contribution rates for employees (reduced-rate ceiling of 7,703 and maximum of 51,910 from 1/1/2026) Official source · checked 2 October 2026
4. National Insurance Institute: employers circular No. 1522 of 1/4/2026 (split of rates between employee and employer, average wage, minimum wage) Official source · checked 2 October 2026
5. Extension order for comprehensive pension insurance, consolidated text 2011 (insured wage up to the average wage, 6-month waiting period) Official source · checked 2 October 2026
6. National Insurance Institute, study "The Mandatory Pension Law" 2023: 6% from the employee, and 6.5% pension and 6% severance from the employer Official source · checked 2 October 2026
7. Severance Pay Law 1963, consolidated text (sections 1, 6 to 11, 12 and 14), published on the National Insurance Institute website Official source · checked 2 October 2026
8. Tax authority: explanatory guidance on raising VAT to 18% from 1/1/2025 Official source · checked 2 October 2026
9. Official representative rate of the US dollar, 3.06 shekels on 2/10/2026 (the central bank that issues the shekel) Official source · checked 2 October 2026
10. PwC Worldwide Tax Summaries: other taxes and national insurance contributions (secondary source used to cross-check) Secondary source used to cross-check · checked 2 October 2026

Results are estimates for information only. Your actual pay can differ with your contract, exemptions and family situation. How we calculate.