Israel self-employed net income calculator (עצמאי)
Your net income as an Israeli עצמאי is income minus National Insurance and health tax — 7.7% up to the step and 18% above it to the ceiling — and then progressive income tax reduced by your credit points.
Worked example: with Annual income after expenses of 300,000, this model computes Net income / year 199,752.11. See the full breakdown.
⚠ Illustrative rates Updated for 2026 · sources checked 2026-08-22
How עצמאי in Israel is calculated
The National Insurance step is the sharpest feature in Israeli self-employment. Up to 60% of the average wage the combined National Insurance and health rate is a modest 7.7%; above it the rate more than doubles to 18%, and it stays there up to the ceiling. Crossing that line costs far more than the income tax bands alone would suggest, and it arrives long before the higher tax brackets do.
Credit points then work in the opposite direction. Every resident receives a base number of points — 2.25 for a man, 2.75 for a woman — and each is worth a fixed amount deducted from the tax itself rather than from income, with more granted for children, new immigrant status and other circumstances. On a modest income they can eliminate the liability entirely.
Worked example
| Annual income after expenses (ILS) | 300000 |
|---|---|
| National Insurance + health tax ✓ | 44479.09 |
| Income tax (after credit points) ✓ | 55768.8 |
| Net income / year ✓ | 199752.11 |
Every row is computed by the engine from the inputs above. Rows marked ✓ are additionally pinned by a published self-test vector.
Frequently asked questions
How much National Insurance does an Israeli freelancer pay?
7.7% on income up to about 92,436 ILS a year and 18% above that up to the ceiling. On 300,000 ILS of income that comes to roughly 44,479 ILS.
What are credit points worth?
Each point reduces the tax itself by a fixed amount each month. A resident man receives 2.25 points as standard and a resident woman 2.75, with additional points for children and other circumstances.
Does this include pension contributions?
No. Pension contributions are compulsory for the self-employed in Israel and are a separate cost this model does not deduct.
Sources
- ביטוח לאומי — שיעורי דמי ביטוח לעצמאי · checked 2026-08-22
- מדרגות מס הכנסה 2026 ושיעורי ביטוח לאומי לעצמאים · checked 2026-08-22
Estimate. Not tax advice. The rates in this calculator are illustrative: they reproduce the shape of the charge through 3 self-test cases, but they are not the official schedule, so the amount shown will not match your bill. Use the official source above for that.
Check the arithmetic yourself: how this calculator is verified — the formula behind every derived value, the 3 test cases the engine reproduces, and what the badge does and does not claim. Also available as machine-readable JSON.
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