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Palestine take-home pay and income tax calculator 2026

Hani · Founder & Tax Data Researcher · ArabTaxCalc

Enter your gross salary to see what reaches your bank account after income tax and social insurance, under the 2026 rules of the Ministry of Finance, Income Tax Directorate.

Last checked: Source: Ministry of Finance, Income Tax DirectorateFully verified
Short answer

In Palestine, a monthly salary of 4,500 shekels leaves 4,425 shekels take-home after 75 income tax (ILS), or 1.7% of gross pay.

Take-home pay calculatorOfficial 2026 rates

Calculate your take-home pay

ILS
Enter the salary as in your contract: basic pay plus fixed allowances.
For private sector employees, the actual transport allowance or 10% of the annual gross salary, whichever is less, is exempt. The calculator assumes the allowance is at least 10% of the salary.

Everything is calculated on your device. We do not store salaries or ask you to sign up.

Take-home pay in Palestineper month · shekel
Gross salary4,500
Income tax− 75
Net per month
shekel
4,425
Net 98.3%Income tax 1.7%Social insurance 0%
Net per year53,100
Total deductions1.7%
Income tax rate1.7%
Marginal rate5%
  • Exemptions deducted: 36,000 shekels a year.
  • There is no general compulsory social security deduction for private sector employees, because the Social Security Decree-Law is suspended. If your employer deducts for a savings or pension fund, your contribution is exempt from tax.

Salary after tax in Palestine

Monthly take-home pay for common salaries, in shekel (ILS).

Gross per monthDeducted per monthNet per monthNet per yearDeduction rate
1,900 ILS01,90022,8000%
2,500 ILS02,50030,0000%
3,500 ILS253,47541,7000.7%
4,500 ILS754,42553,1001.7%
6,000 ILS1505,85070,2002.5%
8,500 ILS2758,22598,7003.2%
12,000 ILS58811,413136,9504.9%
18,000 ILS1,31316,688200,2507.3%

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

Income tax rates in Palestine 2026

Annual taxable income (ILS)Band width per monthRate
0 to 75,0006,2505%
75,000 to 150,0006,25010%
Over 150,000No limit15%

The brackets are annual and apply to taxable income after the residence exemption of 36,000 shekels and any other exemptions due are deducted (transport allowance, contributions to pension and savings funds, the university exemption, housing loan interest).

Social insurance rates

There are no mandatory social insurance contributions on employees in the standard case.

Worked example

An employee earning 4,500 shekels a month, 54,000 a year:

  1. Income tax: 900 ILS a year (75 a month).
  2. Take-home pay = 54,000 minus 900 = 53,100 ILS a year, or 4,425 a month.
  • Exemptions deducted: 36,000 shekels a year.
  • There is no general compulsory social security deduction for private sector employees, because the Social Security Decree-Law is suspended. If your employer deducts for a savings or pension fund, your contribution is exempt from tax.

Key tax facts about Palestine

Tax year
Calendar year, 1 January to 31 December
Residency exemption
36,000 shekels a year for every resident taxpayer. Spouses are taxed separately and each gets their own exemption
Tax bands
5% up to 75,000 shekels, 10% up to 150,000 shekels, 15% above that
Tax residency
120 days in the year for a Palestinian and 183 days for a non-Palestinian to get the residency exemption
Social security
No general scheme in force for the private sector, because Social Security Decree-Law No. 19 of 2016 has been suspended
How it is collected
The employer withholds the tax at source every month
Annual return
Within the first four months after the year ends. Employees must claim their exemptions within 3 months
Value added tax
16%
Corporate tax
15%, and 20% for telecoms companies and companies holding a concession or monopoly

Tax guide to Palestine Living in Palestine in figures Tax authority and filing deadline

Compare Palestine with other countries

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Salary questions about Palestine

What is the take-home pay on 4,500 shekels in Palestine in 2026?

In Palestine, a monthly salary of 4,500 shekels leaves 4,425 shekels take-home after 75 income tax (ILS), or 1.7% of gross pay.

Is there income tax on salaries in Palestine?

Yes. Palestine taxes salaries at 5% to 15% after a residence exemption of 36,000 shekels a year, with a top rate of 15%. It is usually withheld at source by the employer.

How much social insurance do employees pay in Palestine?

No general compulsory social security deduction in the private sector.

How much is deducted from 18,000 shekels a month in Palestine?

1,313 shekels a month (7.3%), leaving 16,688 shekels. The marginal rate at this salary is 15%, so that share of any raise goes in tax.

Official sources

Every figure in this calculator comes from these sources, last checked on 2 October 2026. The brackets and exemptions come from the text of Decree-Law No. 8 of 2011 and its amendments as published by the Maqam encyclopaedia, and are confirmed by the Ministry of Finance services guide. We found no change to the brackets or the exemption after 2015, but Article 12 allows the Council of Ministers to change the exemptions by decision, and we found no such decision. The calculator covers the areas under the Palestinian Authority and assumes a resident employee with no other income. Workers inside the Green Line have a separate calculator: /calculator/inside-green-line/.

  1. Decree-Law No. (8) of 2011 on Income Tax (Articles 7, 11, 12, 14 and 16), Maqam encyclopaedia, An-Najah National University Official source · checked 2 October 2026
  2. Decree-Law No. (5) of 2015 amending the Income Tax Decree-Law: exemption of 36,000 shekels, brackets of 5%, 10% and 15%, and corporate tax of 15% and 20% Official source · checked 2 October 2026
  3. Decree-Law No. (14) of 2016 amending the Income Tax Decree-Law (the latest amendment published in Maqam) Official source · checked 2 October 2026
  4. Decree-Law No. (19) of 2016 on Social Security, legislation status: suspended Official source · checked 2 October 2026
  5. Palestinian Ministry of Finance: Income Tax services guide (residence exemption of 36,000 shekels, residency conditions of 120 and 183 days, return deadlines and the early filing discount) Official source · checked 2 October 2026
  6. Palestinian Ministry of Finance: Decree-Law No. (26) of 2024 on Value Added Tax (16% rate) Official source · checked 2 October 2026
  7. 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
  8. PwC Worldwide Tax Summaries: Palestinian Territories (secondary source used to cross-check the brackets) 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.

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