DoubleTaxationTaxes on salary: Palestinian Territories preliminary data
How much income tax and social contributions are paid on a salary in Palestinian Territories, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | ₪223,707 ≈ €60,000 |
|---|---|
| Income tax | ₪16,906 ≈ €4,534 |
| Take-home pay | ₪206,801 ≈ €55,466 |
| Employer's labour cost | ₪223,707 ≈ €60,000 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 ₪111,854 | €60,000 ₪223,707 | €120,000 ₪447,414 |
|---|---|---|---|
| Sole proprietor | ₪3,233 3.2 % | ₪13,550 6.7 % | ₪43,751 10.9 % |
| Company | ₪15,100 15.0 % | ₪30,200 15.0 % | ₪60,401 15.0 % |
Special tax regimes
There are no special regimes for individuals.
Tax residence
The tax residence check does not cover Palestinian Territories yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 3.72845 ILS (UN Treasury — UN operational rates of exchange, 2025-12-31) ↗
Sources
- Maqam (An-Najah University legal database) — Decree-Law No. 5 of 2015 amending Income Tax Decree-Law No. 8 of 2011 (law text from a third-party publisher; no official copy found)
- Maqam — Decree-Law No. 8 of 2011 on Income Tax, art. 16 (original rates) (law text from a third-party publisher; no official copy found)
- UN Treasury — UN operational rates of exchange (rate history per currency; January 2026 rate effective 31 Dec 2025)
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.