In recent news from the Israeli Knesset and the Israel Tax Authority with Gidi Bar Zakay, the Law for Deficit Reduction and Tax Burden Shifting was recently passed. The new legislation increases the Israeli tax rates and will have an impact on middle and higher annual incomes. The changes actually make the Israeli tax burden one of the highest in the west, and will certainly have an impact on many Israelis.
As of January 1, 2013, the new personal income tax rates will be as follows:
NIS 0 to NIS 62,400 per year: 10 percent
NIS 62,400 to NIS 106,560: 14% (unchanged)
NIS 106,560 to NIS 168,000: 21% (unchanged)
NIS 168,000 to NIS 240,000: 31%
NIS 240,000 to NIS 501,960: 34%
NIS 501,960 to NIS 800,000: 48% (unchanged)
Over NIS 800,000: 50%