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About Israel tax

Israel's mas hachnasa (income tax) uses six brackets from 10% on the first ₪81,480/year up to 50% above ₪698,280/year. Bituach leumi (National Insurance Institute contributions) adds 3.5% on income up to the average wage (roughly ₪11,440/month) and 12% above that, up to a ceiling. Health insurance (bituach briut) is 3.1% up to the same ceiling.

Israel's tech sector is notable for heavy RSU (restricted stock unit) and ESOP compensation — particularly at multinationals like Intel, Microsoft R&D, and local unicorns. Cash take-home for senior software engineers often understates total compensation by 30–50% once equity vesting is included. Read the full Israel tech salary guide →

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