With effect from January 1, 2024, no deduction of Income Tax under the P.A.Y.E. System should be made from the remuneration of employees whose gross income per month is One Hundred Thousand Dollars ($100,000.00) or less.
The table set out below, identifies the personal allowance rate of tax on chargeable income by Year of Income/ Year of Assessment.
| Year of Income (YI) | Year of Assessment (YA) |
Personal Allowance
|
NIS
|
Medical & Life Insurance Premium |
Rate of Tax on Chargeable Income
|
||
| 2014 | 2015 | $600,000 | – | 30% | |||
| 2015 | 2016 | $600,000 |
5.6% Jan. – Sept.-$170,812 Oct-Dec. -$200,000 |
– |
30% |
||
| 2016 | 2017 | $660,000 |
5.6% (maximum of $220,000) |
– |
30% |
||
| 2017 | 2018 |
$720,000 On Income under ($2,160,000) |
1/3 On Income above ($2,160,000) |
5.6% (maximum of $220,000) |
– |
28% on the First $1,440,000 of Chargeable Income 40% on the Balance remaining of Chargeable Income |
|
| 2018 | 2019 |
$720,000 On Income under ($2,160,000) |
1/3 On Income above ($2,160,000) |
5.6% (maximum of $240,000) |
– |
28% on the First $1,440,000 of Chargeable Income 40% on the Balance remaining of Chargeable Income |
|
| 2019 | 2020 |
$780,000 On Income under ($780,000*3 =$2,340,000) |
1/3 On Income above ($2,340,000) |
5.6% (maximum Jan $240,000 Feb-Dec $256,800) |
– |
28% on the First $1,560,000 of Chargeable Income 40% on the Balance remaining of Chargeable Income |
|
| 2020 | 2021 |
$780,000 On Income under ($780,000*3 =$2,340,000) |
1/3 On Income above ($2,340,000) |
5.6% (maximum of $280,000) |
– |
28% on the First $1,560,000 of Chargeable Income 40% on the Balance remaining of Chargeable Income |
|
| 2021 | 2022 |
$780,000 On Income under ($780,000*3 =$2,340,000) |
1/3 On Income above ($2,340,000) |
5.6% (maximum of $280,000) | – |
28% on the First $1,560,000 of Chargeable Income 40% on the Balance remaining of Chargeable Income |
|
| 2022 | 2023 |
On Income under $900,000 ($900,000*3 =$2,700,000) |
1/3 On Income above ($2,700,000) |
5.6% (maximum of $280,000) | Premium paid/10% of Gross Salary/$360,000 |
28% on the First $1,800,000 of Chargeable Income 40% on the Balance remaining of Chargeable Income |
|
| 2022 | 2023 |
$900,000 On Income under ($900,000*3 =$2,700,000) |
1/3 On Income above ($2,700,000) |
5.6% (maximum of $280,000) | Premium paid/10% of Gross Salary/$360,000 |
28% on the First $1,800,000 of Chargeable Income 40% on the Balance remaining of Chargeable Income |
|
| 2023 | 2024 |
$1,020,000 On Income under ($1,020,000*3 = $3,060,000) |
1/3 On Income above ($3,060,000) |
5.6% (maximum of $280,000) |
Premium paid/10% of Gross Salary/$360,000 |
28% on the First $2,040,000 of Chargeable Income 40% on the Balance remaining of Chargeable Income |
|
| 2024 | 2025 |
$1,200,000 On Income under ($1,200,000*3 = $3,600,000) |
1/3 On Income above ($3,600,000) |
5.6% (maximum of $280,000) |
Premium paid/10% of Gross Salary/$600,000 |
28% on the First $2,400,000 of Chargeable Income 40% on the Balance remaining of Chargeable Income |
|
For additional calculations for Year of Income 2024, click here.
