If you have a business licensed in Israel, you are obliged to report and pay VAT on your income -- but how much exactly? Our calculator is designed to help you quickly and easily understand how much VAT you have to pay to the tax authority, depending on your monthly income and expenses that have VAT to offset.
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Gross-Net Salary Calculator For the Self-Employed
Gross-Net Calculator
Gross-Net Calculator 2026
Last updated: April 2026 · Israel Tax Authority + National Insurance Institute
Basic details
Social benefits
Gross additions (advanced)
Special credit points
This calculator is an estimate only and does not replace professional advice. The calculations are based on the tax rules current as of the last update and are not binding on the Tax Authority or the National Insurance Institute. Consult a certified accountant or tax adviser before making business decisions.
FAQ
Frequently Asked Questions
Gross salary is the full pay before deductions, and net salary is what actually remains after deducting income tax, National Insurance, health tax and the employee's pension contribution. The gap between gross and net grows as the salary rises, because of the progressive tax brackets.
Enter the monthly gross salary, the number of credit points and the pension contribution rate, and the calculator computes income tax (on the 10% to 50% brackets after credit points), National Insurance, health tax and the pension - and the result is your monthly net. For maximum accuracy, compare it against your payslip.
A single employee with 2.25 credit points, 6% pension and no study fund takes home roughly ₪11,312 net per month (2026). Deductions include income tax, National Insurance, health tax and the pension contribution.
Israeli income tax charges a different rate on each slice of income: 10% on the portion up to ₪7,010, 14% up to ₪10,060, and so on up to 50% on monthly income above ₪60,161 (2026).
Every Israeli resident receives 2.25 points (single/married). A woman receives an extra 0.5 (2.75 total). A parent receives an extra point for each child under 18. A new immigrant receives 3 points for the first 18 months. A discharged soldier receives 2 points for 36 months.
The calculator computes the standard deductions under 2026 law. A real payslip can include specific additions (travel, clothing, recuperation pay, overtime) or special arrangements that are not part of the basic calculation. Use the “advanced” sections for more accuracy.
A self-employed person pays: (1) income tax on profit (income minus expenses), (2) National Insurance of 4.47% up to ₪7,703 and 12.83% above it, (3) health tax of 3.23% up to ₪7,703 and 5.17% above it. NI ceiling: ₪51,910/month. Pension and study-fund deposits reduce the tax.
Salary is taxed progressively (10–50%) plus National Insurance. A dividend is taxed at a flat 30% for a controlling shareholder (after 23% corporate tax on profit). The common optimization: draw a salary up to the end of the 31% bracket (₪19,000) and the rest as a dividend — saving over 15% in tax.
The tax brackets were widened in April 2026 (the 20% bracket now reaches ₪19,000 instead of ₪16,150). The NI ceiling rose to ₪51,910. The credit-point value remained ₪242. NI and health-tax rates are unchanged from 2025.
No. The entire calculation runs in your browser and nothing is sent to a server. Only if you contact us afterwards are your details sent to the SFB team.
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Gross-net
What is a net gross calculator for a business?
The net gross calculator allows you to calculate how much money you have left after subtracting from the gross the income tax, social security, pension provisions, recognized expenses and VAT (if you are a licensed trader).
What is the difference between gross and net?
Gross is the full salary before deductions, and net is the amount that actually reaches your bank account after all deductions. The gap between the two is made up of income tax, National Insurance, health tax and the employee's pension contribution. The gap between gross and net grows as the salary rises, because of the progressive tax brackets. A gross-net calculator does this math for you in seconds.
How do you calculate gross to net for an employee (2026)?
The calculation for an employee works like this, step by step:
- Income tax - computed on progressive brackets (from 10% up to 50%), after subtracting credit points. Each credit point is worth about ₪242 per month (2026).
- National Insurance and health tax - deducted from the employee's salary at a graduated rate based on salary level.
- Pension contribution - the employee's share (usually 6%) comes off the gross and also reduces the tax.
Example: a single employee with 2.25 credit points and a gross salary of ₪15,000 takes home about ₪11,312 net per month (2026), after income tax, National Insurance, health tax and the pension contribution.
What affects your net pay?
- Credit points - the more you have (woman, parent, new immigrant, discharged soldier) the higher your net.
- Pension and study-fund deposits - reduce taxable income and therefore the tax.
- Type of earner - employee, self-employed or company owner are calculated differently. Self-employed? Use our VAT calculator too.
Is the calculator also suitable for an exempt dealer or a limited company?
Yes. The calculator includes the option to select the type of dealer -- licensed dealer, exempt or limited company -- and the result will be automatically adjusted according to the characteristics and laws applicable to each type.
How do you calculate the income tax and social security?
The default is a calculation by estimated percentages, but you can enter the Marginal tax rate andSocial Security Rate Yours. This way you can get a customized result according to your actual situation.
What is creditable points and how does it affect tax?
Every citizen in Israel has tax deductible points. Each point is worth about $235 a month, which is deducted from the tax you are supposed to pay. The more points you have -- the less tax you'll pay.
Is the calculator also suitable for annual calculation?
It currently operates on a monthly basis, but if you enter your income and expenses by year — you can use it to calculate your annual net for your needs.
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