{
  "$comment": "Machine-readable companion to https://valem.run/calculators/israel/self-employed. Formula, inputs, outputs, engine-verified test vectors, cited sources and the re-runnable Valem ModelSpec behind the page.",
  "url": "https://valem.run/calculators/israel/self-employed",
  "dataUrl": "https://valem.run/calculators/israel/self-employed.json",
  "license": {
    "name": "CC BY 4.0",
    "url": "https://creativecommons.org/licenses/by/4.0/",
    "attribution": "Israel עצמאי model by Valem (https://valem.run/calculators/israel/self-employed), CC BY 4.0.",
    "note": "Covers the model — the expression of each rule and the arrangement of the catalog. The rates and thresholds themselves are law and are not licensed by anyone; the cited sources are where they come from."
  },
  "verificationUrl": "https://valem.run/calculators/israel/self-employed/verify",
  "country": "israel",
  "countryName": "Israel",
  "formula": "self-employed",
  "formulaName": "עצמאי",
  "title": "מס לעצמאי — Israel Freelancer Tax",
  "answer": "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.",
  "lang": "en",
  "currency": "ILS",
  "taxYear": "2026",
  "verification": {
    "claim": "shape-only",
    "statement": "The rates in this model are illustrative. Its 3 self-test cases confirm the engine reproduces the shape of the charge, but the schedule is not the official one, so the amount will not match a real bill. The cited sources name the document that would replace it.",
    "selfTestCases": 3,
    "ratesAreIllustrative": true,
    "sourcesCheckedOn": "2026-08-22"
  },
  "sources": [
    {
      "label": "ביטוח לאומי — שיעורי דמי ביטוח לעצמאי",
      "url": "https://www.btl.gov.il/",
      "checked": "2026-08-22"
    },
    {
      "label": "מדרגות מס הכנסה 2026 ושיעורי ביטוח לאומי לעצמאים",
      "url": "https://calcfinance.co.il/blog/income-tax-brackets-2026/",
      "checked": "2026-08-22"
    }
  ],
  "terminalOutput": "netIncome",
  "inputs": [
    {
      "name": "annualIncome",
      "type": "number",
      "label": "Annual income after expenses (ILS)",
      "minimum": 0
    }
  ],
  "outputs": [
    {
      "name": "nationalInsurance",
      "type": "number",
      "label": "National Insurance + health tax",
      "format": "number",
      "formula": "($i := annualIncome; $round($const.niLowRate * $min([$i, $const.niStep]) + $const.niHighRate * $max([0, $min([$i, $const.niCeiling]) - $const.niStep]), 2))"
    },
    {
      "name": "incomeTax",
      "type": "number",
      "label": "Income tax (after credit points)",
      "format": "number",
      "formula": "($i := annualIncome; $round($max([0, $const.r1 * $min([$i, $const.b1]) + $const.r2 * $max([0, $min([$i, $const.b2]) - $const.b1]) + $const.r3 * $max([0, $min([$i, $const.b3]) - $const.b2]) + $const.r4 * $max([0, $min([$i, $const.b4]) - $const.b3]) + $const.r5 * $max([0, $min([$i, $const.b5]) - $const.b4]) + $const.r6 * $max([0, $min([$i, $const.b6]) - $const.b5]) + $const.r7 * $max([0, $i - $const.b6]) - $const.creditPoints * $const.creditPointValue]), 2))"
    },
    {
      "name": "netIncome",
      "type": "number",
      "label": "Net income / year",
      "format": "number",
      "formula": "$round($max([0, annualIncome - nationalInsurance - incomeTax]), 2)"
    }
  ],
  "testCases": [
    {
      "description": "300,000 ILS income — a typical full-time freelancer",
      "given": {
        "annualIncome": 300000
      },
      "expect": {
        "nationalInsurance": 44479.09,
        "incomeTax": 55768.8,
        "netIncome": 199752.11
      }
    },
    {
      "description": "90,000 ILS — below the National Insurance step",
      "given": {
        "annualIncome": 90000
      },
      "expect": {
        "nationalInsurance": 6930,
        "incomeTax": 2701.2,
        "netIncome": 80368.8
      }
    },
    {
      "description": "700,000 ILS — above the National Insurance ceiling",
      "given": {
        "annualIncome": 700000
      },
      "expect": {
        "nationalInsurance": 102604.69,
        "incomeTax": 212535.2,
        "netIncome": 384860.11
      }
    }
  ],
  "spec": {
    "id": "self-employed-israel",
    "version": "1.0.0",
    "schema": {
      "type": "object",
      "properties": {
        "annualIncome": {
          "type": "number",
          "minimum": 0
        },
        "nationalInsurance": {
          "type": "number",
          "readOnly": true
        },
        "incomeTax": {
          "type": "number",
          "readOnly": true
        },
        "netIncome": {
          "type": "number",
          "readOnly": true
        }
      },
      "required": [
        "annualIncome"
      ]
    },
    "constants": {
      "niStep": 92436,
      "niCeiling": 622920,
      "niLowRate": 0.077,
      "niHighRate": 0.18,
      "creditPoints": 2.25,
      "creditPointValue": 2904,
      "b1": 84120,
      "b2": 120720,
      "b3": 193800,
      "b4": 269280,
      "b5": 560280,
      "b6": 721560,
      "r1": 0.1,
      "r2": 0.14,
      "r3": 0.2,
      "r4": 0.31,
      "r5": 0.35,
      "r6": 0.47,
      "r7": 0.5
    },
    "defaultValues": [
      {
        "path": "$",
        "expr": "{ \"annualIncome\": 300000 }"
      }
    ],
    "derivations": [
      {
        "path": "$.nationalInsurance",
        "expr": "($i := annualIncome; $round($const.niLowRate * $min([$i, $const.niStep]) + $const.niHighRate * $max([0, $min([$i, $const.niCeiling]) - $const.niStep]), 2))"
      },
      {
        "path": "$.incomeTax",
        "expr": "($i := annualIncome; $round($max([0, $const.r1 * $min([$i, $const.b1]) + $const.r2 * $max([0, $min([$i, $const.b2]) - $const.b1]) + $const.r3 * $max([0, $min([$i, $const.b3]) - $const.b2]) + $const.r4 * $max([0, $min([$i, $const.b4]) - $const.b3]) + $const.r5 * $max([0, $min([$i, $const.b5]) - $const.b4]) + $const.r6 * $max([0, $min([$i, $const.b6]) - $const.b5]) + $const.r7 * $max([0, $i - $const.b6]) - $const.creditPoints * $const.creditPointValue]), 2))"
      },
      {
        "path": "$.netIncome",
        "expr": "$round($max([0, annualIncome - nationalInsurance - incomeTax]), 2)"
      }
    ],
    "constraints": [],
    "viewDefinition": {
      "renderer": "builtin",
      "defaultView": "main",
      "views": [
        {
          "id": "main",
          "label": "Self-employed net income",
          "layout": "vertical",
          "components": [
            {
              "id": "illustrativeNotice",
              "type": "alert",
              "variant": "warning",
              "label": "What this model leaves out",
              "text": "'The National Insurance step is the feature to understand: 7.7% applies only up to 60% of the average wage and the rate then more than doubles to 18% on everything above it, up to the ceiling — so a modest rise in income can be far more expensive than the income-tax bands alone suggest. Credit points are applied at the 2.25 a resident man receives; a resident woman receives 2.75, and children, new immigrant status and other circumstances add more. Pension contributions, which are mandatory for the self-employed, and the deductibility of part of the National Insurance are not modelled. Not tax advice.'"
            },
            {
              "id": "inputField",
              "type": "numericField",
              "label": "Annual income after expenses (ILS)",
              "bind": "$.annualIncome",
              "placeholder": "300000"
            },
            {
              "id": "tiles",
              "type": "group",
              "layout": "horizontal",
              "components": [
                {
                  "id": "netIncomeTile",
                  "type": "statTile",
                  "label": "Net income / year",
                  "bind": "$.netIncome",
                  "format": "number"
                },
                {
                  "id": "nationalInsuranceTile",
                  "type": "statTile",
                  "label": "National Insurance + health tax",
                  "bind": "$.nationalInsurance",
                  "format": "number"
                },
                {
                  "id": "incomeTaxTile",
                  "type": "statTile",
                  "label": "Income tax (after credit points)",
                  "bind": "$.incomeTax",
                  "format": "number"
                }
              ]
            },
            {
              "id": "sources",
              "type": "sourceList",
              "label": "Sources",
              "items": [
                {
                  "label": "ביטוח לאומי — שיעורי דמי ביטוח לעצמאי",
                  "url": "https://www.btl.gov.il/",
                  "date": "2026-08-22"
                },
                {
                  "label": "מדרגות מס הכנסה 2026 ושיעורי ביטוח לאומי לעצמאים",
                  "url": "https://calcfinance.co.il/blog/income-tax-brackets-2026/",
                  "date": "2026-08-22"
                }
              ]
            }
          ]
        }
      ]
    },
    "tests": [
      {
        "description": "300,000 ILS income — a typical full-time freelancer",
        "given": {
          "$.annualIncome": 300000
        },
        "expect": {
          "$.nationalInsurance": 44479.09,
          "$.incomeTax": 55768.8,
          "$.netIncome": 199752.11
        }
      },
      {
        "description": "90,000 ILS — below the National Insurance step",
        "given": {
          "$.annualIncome": 90000
        },
        "expect": {
          "$.nationalInsurance": 6930,
          "$.incomeTax": 2701.2,
          "$.netIncome": 80368.8
        }
      },
      {
        "description": "700,000 ILS — above the National Insurance ceiling",
        "given": {
          "$.annualIncome": 700000
        },
        "expect": {
          "$.nationalInsurance": 102604.69,
          "$.incomeTax": 212535.2,
          "$.netIncome": 384860.11
        }
      }
    ]
  }
}