Israeli Rental Income Tax for Non-Residents (2026) — Rates, Tracks & Free Calculator

🇫🇷 Version française : Impôt sur les revenus locatifs en Israël

The short version. Israel taxes rental income from Israeli property regardless of where you live. Individuals choose one of three tracks per property: the exemption track (no tax up to ₪5,654/month), the 10% flat track (10% of gross rent, from the first shekel), or the marginal-rate track (brackets, after expenses). Tax under the 10% track is due within 30 days of the end of the tax year.

The three tracks — 2026

Track	How it works	Best when
Exemption	Full exemption while monthly rent ≤ ₪5,654. Partial exemption between ₪5,654 and ₪11,308. No exemption above ₪11,308.	Lower rents / a single modest apartment
10% flat (Section 122)	10% of gross rent, from the first shekel. No deductions, no depreciation, no expenses.	Higher rents; simplicity; most non-residents
Marginal	Taxed at income-tax brackets after deducting expenses and depreciation.	High expenses / interest / renovations — case-specific

Exemption ceilings for 2026: ₪5,654 (full) / ₪11,308 (partial cap). Partial-exemption formula: exempt amount = 5,654 − (monthly rent − 5,654). Sources: Israel Income Tax Ordinance §122, and the Tax Authority guide linked at the foot of this page. These ceilings have not moved since 2024, and that is deliberate — see below.

Compare your options — free calculator

Your monthly rent from the Israeli property (₪)

This tool gives a general estimate for comparison only — it is not tax advice, not a filing, and does not account for your full circumstances (other Israeli income, the marginal track after expenses, tax-treaty effects, or eligibility questions for non-residents). Nothing you type is sent anywhere — the calculation runs entirely in your browser. Confirm your situation with a licensed Israeli tax professional.

Why these figures are not moving

Israeli tax amounts are normally re-indexed to inflation each year, which is why guides tell you to check the current-year number. That mechanism is currently switched off. On 16 December 2024 the Knesset Finance Committee approved a freeze, announced jointly by the Israel Tax Authority and the Ministry of Finance: for 2025, 2026 and 2027 no adjustment is made for the index changes of 2024 to 2026. The announcement lists what the freeze covers, and the exemption ceiling on rental income is named explicitly — alongside the purchase-tax brackets and the mas shevach exemption ceiling on the sale of a single apartment.

Two consequences. The ₪5,654 and ₪11,308 ceilings on this page are the same figures that applied in 2024: frozen, not out of date. And when indexation resumes in 2028, the announcement states that the restored amounts will not include the index change for 2024 to 2026 — so the effect is permanent, not deferred.

The same announcement carries a second item that reaches this income directly. On top of the existing 3% surtax on taxable income above the surtax threshold — ₪721,560 as at 2024 — an additional 2% applies from 2025 to income not derived from employment or a business, and the announcement names rental income and real-estate sales among the income it reaches. Whether it touches you depends on your total Israeli income, which is a question for an adviser rather than a line in a calculator.

How and when to pay (10% track)

Deadline: the tax is due within 30 days of the end of the tax year in which you received the rent. Late payment adds interest and linkage (indexation).
How: using the Israel Tax Authority's dedicated form — "Request for payment of tax on income from residential rent." Payment can generally be made without opening a full tax file, if the 10% track conditions are met.
Annual report: if your rent taxed under the 10% track exceeds ₪375,000 in the year, you must also file an annual return.

What's different for non-residents

You are taxed in Israel on Israeli-source income — rent from an Israeli apartment is Israeli-source, wherever you live.
The 10% and marginal tracks are available to non-residents. Eligibility for the exemption track in specific non-resident situations can be nuanced — confirm it for your case.
A tax treaty between Israel and your country of residence may affect how the same income is treated where you live (credits against US or French tax, etc.). Israel generally taxes the Israeli-source rent first.
Owning 10+ apartments may be treated as a business (taxed at brackets); 6–10 is examined case-by-case; 5 or fewer typically is not.

Still buying rather than renting out? Non-residents pay higher purchase tax (8% from the first shekel) — estimate it with our Israel purchase tax calculator for foreign buyers.

Ready to file — with a licensed professional

This site is an independent information resource and a free calculator. It is not a tax firm and does not represent taxpayers. When you're ready to file or want advice on your specific situation, the work should be done by a licensed Israeli tax professional (CPA / licensed tax representative / lawyer). Tell us about your case and we'll point you in the right direction.

Get pointed to a licensed professional

Frequently asked questions

Do I have to pay Israeli tax on rent if I live abroad?

Yes. Rental income from an apartment located in Israel is Israeli-source income and is taxable in Israel regardless of where the owner lives. You choose a taxation track (exemption, 10% flat, or marginal). A tax treaty with your country of residence may affect how the income is treated where you live, but Israel generally taxes the Israeli-source rent.

What is the 10% track (Section 122)?

Section 122 lets an individual pay a flat 10% on gross residential rent, from the first shekel, with no deduction of expenses or depreciation. The conditions include that the landlord is an individual, the property is used for residential purposes, and the rental is not a business. The tax is due within 30 days of the end of the tax year.

How does the exemption track work in 2026?

Rent is fully exempt in any month it does not exceed ₪5,654. Between ₪5,654 and ₪11,308 a partial exemption applies, calculated as: exempt amount = 5,654 − (monthly rent − 5,654). Above ₪11,308 per month there is no exemption. The taxable portion under this track is taxed at the individual's rates. The ceilings are frozen for 2025-2027 and have not moved since 2024.

When is the tax due?

Under the 10% track, payment is due within 30 days of the end of the tax year in which the rent was received; late payment adds interest and indexation. If income taxed under the 10% track exceeds ₪375,000 in the year, an annual report is also required.

Is this site a tax advisor or accountant?

No. This is an independent information resource with a free comparison calculator. It does not provide personal tax advice, does not represent taxpayers before the Israel Tax Authority, and is not a licensed tax firm. Filing and advice for your specific situation should be handled by a licensed Israeli tax professional.

Important. This page provides general information about Israeli tax rules and is not tax, legal, or accounting advice, and not a substitute for professional advice on your specific circumstances. Tax figures (ceilings, thresholds, rates) are updated periodically and may change — verify the current-year figures and your eligibility with a licensed Israeli tax professional or the Israel Tax Authority before acting. This site does not represent taxpayers before any tax authority.

Sources

Every figure on this page traces to one of these.

The sources are in Hebrew — they are the first-rank Israeli references, not secondary guides. Checked 5 September 2026.

Related guides

Letting is one side of it. These cover the rest.

Israel purchase tax for foreign buyers — what you pay when you buy — 8% from the first shekel
Capital gains tax when you sell (Mas Shevach) — the 25% rate and the pre-2014 exemption
New olim reporting from 2026 — the filing obligation for new immigrants

Tax on Israeli rental income for owners living abroad