israeli-spreadsheets

Israeli Spreadsheets

Instructions

Step 1: Set Up Python Environment

Install openpyxl:

pip install openpyxl

Step 2: Israeli Financial Constants

• VAT rate: 18% (raised from 17% on 2025-01-01). A rise to 19% was floated at the Finance Ministry but not enacted: the 2026 state budget contains no such increase.
• Tax brackets 2026 (after the 2026 bracket widening): 10% up to 84,120 NIS, 14% up to 120,720, 20% up to 228,000, 31% up to 301,200, 35% up to 560,280, then 47% on every additional shekel. The 20% and 31% bands were widened on 1 January 2026; the other thresholds were carried over from 2025 (frozen through 2027).
• There is no statutory 50% bracket. The official table stops at 47%. The 50% figure comes from adding the Section 121B(a) surtax of 3% on taxable income above 721,560 NIS, which gives 50% effective on personal-exertion income. Section 121B(a1) adds a FURTHER 2% on capital-source income above the same threshold, so investment income above it reaches 5% of surtax, not 3%. Label these as surtax, not as brackets, or a sheet will apply the capital limb to salary.
• Credit point value: 2,904 NIS/year (242 NIS/month). Entitlement is 2.25 points for a male Israeli resident and 2.75 for a female Israeli resident (the extra half point for a woman). Using 2.25 for everyone understates a woman's credit by 1,452 NIS/year.
• Bituach Leumi (employee, resident aged 18 to retirement age): 1.04% up to the reduced-collection step of 7,703 NIS/month, 7.00% above it up to the 51,910 NIS/month maximum insurable income; income above that is not insurable
• Health tax (employee, same category): 3.23% up to 7,703 NIS/month, 5.17% above
• Those two lines are ONE ROW of the official table. The employee rate varies by age, pension status and disability status, and for several categories it is ZERO. See "Step 2.5: the full employee rate table" below before generating any payroll sheet.

Step 2.5: The Full Employee Bituach Leumi / Health Tax Table