As of 2026, a self-employed person in Israel pays 4.47% national insurance plus 3.23% health insurance on monthly income up to 7,703 ₪, and 12.83% + 5.17% on the portion above, up to a ceiling of 51,910 ₪ per month. On 15,000 ₪ a month: about 1,281 ₪ national insurance + about 626 ₪ health = about 1,907 ₪ per month.
How is it calculated?
Your taxable monthly income (after deductible expenses) is split into two brackets: the portion up to 7,703 ₪ is charged the reduced rate — 4.47% national insurance plus 3.23% health insurance (7.7% total); the portion above is charged the full rate — 12.83% + 5.17% (18% total), up to an income ceiling of 51,910 ₪ per month. Income below 3,442 ₪ per month is charged as if it were at that minimum floor.
On 15,000 ₪ a month: 7,703 × 7.7% = about 593 ₪ on the first bracket, and 7,297 × 18% = about 1,313 ₪ on the second — about 1,907 ₪ per month, or about 22,880 ₪ per year. Payment is made through monthly advances (mikdamot) due by the 15th, based on estimated income; advances can be updated up to 4 times a year (Form 672, for changes of 10% or more), with final settlement against the annual income-tax assessment.
Frequently asked questions
Are self-employed Bituach Leumi payments tax-deductible?
Yes — 52% of the national insurance contributions a self-employed person pays are deductible from taxable income for income-tax purposes (health insurance contributions are not). Someone who paid, say, 15,370 ₪ in national insurance for the year gets a deduction of about 7,992 ₪ from taxable income.
How much does a low-income self-employed person pay?
Contributions are computed on an income floor of at least 3,442 ₪ per month, even if actual income is lower. That means a minimum payment of about 265 ₪ per month (7.7% of 3,442 ₪) for anyone who meets the National Insurance definition of self-employed.
Are these rates permanent?
The 2026 rates — 4.47%/12.83% for national insurance and 3.23%/5.17% for health — were set as a temporary provision in force through the end of 2026. Ongoing payment is via monthly advances, and the final reckoning is made against the annual assessment based on actual income.
This calculation is a general estimate for illustration only. It does not constitute tax, pension, or investment advice, nor a substitute for personal advice from a licensed professional, and should not be relied on for decisions.
