As of 2026, a self-employed person's net in Israel is the monthly profit (income minus expenses) minus income tax at bracket rates of 10% to 47%, and minus Bituach Leumi (National Insurance) and health tax at self-employed rates — 7.7% on the portion up to ₪7,703 a month and 18% above it. For example, a profit of ₪15,000 a month with 2.25 credit points leaves about ₪11,522 net.
How is it calculated?
The calculation runs in three steps. First, annual income tax on the profit per the 2026 brackets: 10% up to ₪84,120, 14% up to ₪120,720, 20% up to ₪228,000, 31% up to ₪301,200, 35% up to ₪560,280 and 47% above — then credit points (₪2,904 per point per year) are subtracted from the tax. In parallel, Bituach Leumi and health tax are computed at self-employed rates: 4.47% and 3.23% on the portion up to ₪7,703 a month, and 12.83% and 5.17% on the portion above. Net is the profit minus all three amounts.
In the example, a profit of ₪15,000 a month with 2.25 credit points leaves about ₪11,522 net. Note the calculation is simplified: it does not include the 52% deduction of Bituach Leumi payments from taxable income, mandatory self-employed pension deposits, or keren hishtalmut — so the actual net is usually slightly higher. Osek patur or osek murshe status does not change the income tax or Bituach Leumi calculation.
Frequently asked questions
How does self-employed net compare to an employee's net on the same amount?
On a ₪15,000 monthly profit a self-employed person keeps about ₪11,522 net, while an employee with a ₪15,000 gross salary takes home about ₪12,212 net. The gap comes mainly from higher Bituach Leumi rates for the self-employed, and an employee also has an employer depositing into their pension — a benefit that doesn't show in net pay but exists.
Does an osek patur pay less income tax than an osek murshe?
No. The difference between osek patur and osek murshe is VAT only — income tax, Bituach Leumi and health tax are calculated the same way from profit regardless of business type. An osek patur simply does not charge VAT to customers up to the turnover ceiling.
Why might my real net be higher than the result?
The calculator is simplified and does not include the 52% deduction of Bituach Leumi payments from taxable income, the tax benefits on mandatory self-employed pension deposits, or keren hishtalmut. So the actual net is usually slightly higher than the figure shown here.
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.
