A few days ago, the Tax Authority published the new income tax rates for 2024, along with the new value of credit points and other data that affect the public's income.

You can see the new tax rate table above. The new rates will come into effect for January's salary. The tax rates are linked to the inflation rate, which reached 3.3% last November.

People with incomes higher than the average wage in the economy are expected to benefit from an additional NIS 300 net in their wages starting this month.

The value of each credit point was increased by approximately 7 NIS per month. Israeli Citizens are entitled to income tax credits, which reduce the amount of tax they pay on their income from work. The basic right is 2.25 credit points per resident. The value of a point as of 2024 has risen to NIS 242 per month, which is NIS 2,904 for a full year. Women are entitled to an additional half point. Additional tax points are given to parents, single parents, those who did national service, spouses of unemployed people, people with disabilities, parents of children with disabilities etc. The credit points reduce the tax paid, thereby increasing the net pay of each employee. The annual savings per person can reach NIS 1,200 - 1,500!

Starting this month, parents will also receive a credit point for each child between the ages of 13 - 18.

Also, the tax exemption ceiling for income from a rental property was updated to NIS 5,654.

As you can see in the table above:
The lowest income tax rate of 10%  is now charged on salaries up to NIS 7,010 per month, (the amount was NIS 6,790 last year).

The 14% tax bracket is now on gross monthly salaries of 7,011 to 10,060 shekels, which is 84,121 to 120,720 shekels per year.

A tax rate of 20% will be collected from a monthly gross salary of NIS 10,061 to 16,150, which is NIS 120,721 to 193,800 per year.

The highest tax rate of 50% is charged for gross salaries over 60,131 per month.

Income tax is incremental. This means that if you earn 12,000 shekels, you will pay 10% tax on the first 7,010 shekels, 14% on the next 3,049 shekels, and 20% on the remaining 1,939 shekels.

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