Israeli Rental Income Tax Calculator — Compare All 3 Tax Tracks
Teamz LabIsraeli Rental Income Tax Calculator — Compare All 3 Tax Tracks
Israel gives landlords a unique choice: three different ways to pay tax on rental income. Choosing the wrong track can cost thousands of shekels per year. This calculator compares all three side by side.
[Try the Rental Income Tax Calculator →](https://tool.teamzlab.com/il/rental-income-tax-israel/?utm_source=telegraph&utm_medium=article&utm_campaign=2026-05-il-rental-income-tax-calculator-3-tracks)
The 3 Israeli Rental Tax Tracks
### Track 1: Exemption (Patur)
Rental income up to ₪5,654/month (2025 ceiling) is completely tax-free. Between ₪5,654 and ₪11,308, a partial exemption formula applies. Above ₪11,308, no exemption at all. This is the simplest option for landlords with modest rental income.
### Track 2: 10% Flat Rate
Pay a flat 10% on gross rental income — no deductions allowed. Must be paid within 30 days of receiving rent. Under Section 122 of the Income Tax Ordinance, this track is popular with landlords who have no significant expenses.
### Track 3: Marginal Rates
Rental income gets added to your other income and taxed at marginal rates (10%–50%). Expenses are deductible — maintenance, depreciation at 2%/year, agent fees, insurance. Best for landlords with high deductible expenses.
When to Choose Each Track
Situation | Best Track
Rent under ₪5,654/mo, no other income | Track 1 (Exemption)
Rent ₪6,000-₪15,000/mo, few expenses | Track 2 (10% flat)
High expenses (mortgage interest, renovations) | Track 3 (Marginal)
Multiple properties, high rental income | Track 3 (Marginal)
The calculator shows the exact tax under each track and highlights which one saves you the most — no guesswork needed.
Important: Married Couples
Married couples can split rental income and each claim the Track 1 exemption ceiling independently. With two apartments renting at ₪5,000/month each, a couple could pay zero tax under Track 1.
Based on rates from the Israel Tax Authority (Mas Hachnasa) for 2025. Updated April 2026.
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[Compare all 3 tax tracks →](https://tool.teamzlab.com/il/rental-income-tax-israel/?utm_source=telegraph&utm_medium=article&utm_campaign=2026-05-il-rental-income-tax-calculator-3-tracks)
Originally published at tool.teamzlab.com