Proposed Income Tax Cuts in Israel
Check out this article in the Jerusalem Post on proposed tax-cuts that would be put in place over the next 7 years. To sum it up:
| Monthly Salary (NIS) | 2008 tax rate | 2015 tax rate | Current US Rate |
| 0-4,390 | 10% | 10% | 10-15% |
| 4,390-7,810 | 16% | 10% | 15% |
| 7,810-11,720 | 26% | 17% | 15-25% |
| 11,720-16,840 | 33% | 25% | 25% |
| 16,840-36,760 | 35% | 30% | 25-28% |
| 36,760+ | 48% | 42% | 28-35% |
Yay! While this will still leave Israel tax rates higher than US rates, it makes up most of the difference, and in some cases will have a lower tax rate in Israel than in the US (more at the lower levels – Israel has a more progressive tax than the US does). Combine this with the proposed new tax benefits for olim and there goes at one more common excuse not to make aliyah.
(Note: US rates above based on an 3.35 exchange rate, and assume that you are filing in the US as a single person, since in Israel the income from each spouse is taxed at a different rate, based on that spouse’s tax bracket).
really good to know – thanks
Rebecca
12 Jun 08 at 9:30
finally they take majority into account
John
17 Jun 08 at 22:32