{"title":"Israeli payroll over-withholding, computed for tax year 2026","year":2026,"published":"2026-09-16","license":"Free to cite and reuse with attribution to hozer.co.il","nature":"modelled","disclaimer":"These figures are arithmetic, not observation. No sample, survey or user data is behind them: each profile is a stated set of inputs run through the same engine as the site's calculators. Your own figure depends on your credit points, pension arrangement and the rest of your year. The Israeli Tax Authority determines any actual refund.","assumptions":{"creditPoints":2.25,"creditPointValueAnnual":2904,"brackets":[{"upTo":84120,"rate":0.1},{"upTo":120720,"rate":0.14},{"upTo":228000,"rate":0.2},{"upTo":301200,"rate":0.31},{"upTo":560280,"rate":0.35},{"upTo":721560,"rate":0.47},{"upTo":null,"rate":0.5}],"bonusMonth":12,"rsuTrack":"section 102 capital gains track, held past 24 months","rsuGrantValue":140000,"rsuSaleValue":200000,"excluded":[{"factor":"national insurance and health contributions","direction":"lowers the estimate"},{"factor":"eligible-locality relief","direction":"lowers the estimate"},{"factor":"any credit point beyond the resident base of 2.25","direction":"lowers the estimate"},{"factor":"pension and study-fund credits under section 45a","direction":"not established either way for the partial-year table; excluded rather than guessed"}],"modelledNotExcluded":[{"factor":"surtax on the salary component of a vest","note":"the grant component is stacked through the full bracket ladder, so the 47% to 50% step above 721,560 is priced in"}]},"tables":{"exitMonth":{"description":"Refund created by leaving after N months: payroll withheld at a twelve-month pace on a year that did not happen.","columns":["3 months worked","6 months worked","9 months worked"],"rows":[{"salary":25000,"values":[11729,12531,10226]},{"salary":30000,"values":[15231,17007,12320]},{"salary":35000,"values":[18381,21507,13568]},{"salary":40000,"values":[21531,24687,13568]},{"salary":45000,"values":[23825,25887,13568]},{"salary":50000,"values":[27266,29470,17142]},{"salary":60000,"values":[35366,36718,27942]},{"salary":70000,"values":[44354,45695,33041]}]},"decemberBonus":{"description":"Over-withholding on a bonus paid in December, taxed by payroll as if it repeated in every month of the year.","columns":["1x monthly salary","2x monthly salary","3x monthly salary"],"rows":[{"salary":25000,"values":[441,3887,7637]},{"salary":30000,"values":[1597,6093,10593]},{"salary":35000,"values":[3093,8343,13593]},{"salary":40000,"values":[4593,10593,11827]},{"salary":45000,"values":[3127,4477,5827]},{"salary":50000,"values":[1196,2696,3343]},{"salary":60000,"values":[43,43,43]},{"salary":70000,"values":[0,0,0]}]},"rsuSale":{"description":"Trustee withholding versus liability on a 200000 shekel sale of a 140000 shekel grant.","columns":["withheld by the trustee","actually due","over-withheld"],"rows":[{"salary":25000,"values":[82600,63952,18648]},{"salary":30000,"values":[82600,64000,18600]},{"salary":35000,"values":[82600,64000,18600]},{"salary":40000,"values":[82600,71166,11434]},{"salary":45000,"values":[82600,78366,4234]},{"salary":50000,"values":[82600,81353,1247]},{"salary":60000,"values":[82600,84953,0]},{"salary":70000,"values":[82600,85000,0]}]}},"findings":{"bonusPeaksMidRange":{"statement":"The bonus trap is a mid-range phenomenon. It peaks around a 40,000 shekel salary, is down to tens of shekels at 60,000 and is exactly zero at 70,000, because a salary already in the top bracket cannot be pushed any higher by annualising a bonus.","peakSalary":40000,"peakValue":10593,"atTopOfRange":0},"refundIsConstantWithinABracket":{"statement":"Within one marginal bracket the partial-year refund does not depend on salary at all. Two engineers who both left in September are owed the same sum, whatever either was paid.","months":9,"bracketFloor":301200,"bracketCeiling":560280,"rate":0.35,"refund":13568,"salariesItHoldsFor":[35000,40000,45000],"derivation":"(m/12 - 1) * (K - r*c), where the salary terms cancel"},"trusteeWithholdingIsOnlyExcessBelowTheTop":{"statement":"The trustee's flat 47% on the salary component of a vest is an over-deduction only below a monthly salary of about 45,000. Above that the salary component is under-withheld, not over-withheld, and what remains in the table's total is the gain's own constant excess rather than anything reclaimable on the salary component.","vanishesAboveMonthlySalary":45000,"gainConstantExcess":1800,"gainNote":"The trustee withholds 28% on the capital component where 25% is due, so 3% of the gain is over-withheld at every salary. That part does not vary and is not what this finding is about."}},"composite":{"description":"One engineer, one eventful year: seven months worked, a bonus of two salaries on the way out, four years of severance without coordination or spreading, and one vest sold. Computed as a single year, not as a sum of four.","input":{"salary":42000,"monthsWorked":7,"bonusMultiple":2,"seniorityYears":4,"rsuGrant":140000,"rsuSale":200000},"result":{"salary":22325,"bonus":4764,"severance":6754,"rsu":18888,"total":52730,"severanceTaxable":113000,"severanceExempt":55000,"annualSalaryIncome":378000}},"reproduce":{"note":"Every row can be reproduced in the site's own calculators.","calculators":{"exitMonth":"https://hozer.co.il/calculator","decemberBonus":"https://hozer.co.il/bonus-calculator","rsuSale":"https://hozer.co.il/rsu-calculator","severance":"https://hozer.co.il/severance-calculator"}}}