What is the dividend tax rate in Israel?

An ordinary resident shareholder pays 25% on dividends. A substantial shareholder — someone who holds 10% or more of the company at any point in the 12 months before the dividend — pays 30%. The calculator applies 25% by default and 30% when you flag substantial-shareholder status.

What is the surtax (mas yasaf)?

Israel levies an additional surtax of 3% on annual taxable income above a high threshold (around ₪721,000). Where your dividend falls above that line it can be subject to the extra 3%. Tick the surtax box to add it on top of the base dividend rate.

Is dividend tax withheld at source in Israel?

Yes. Israeli companies and brokers withhold the dividend tax at source — typically 25% or 30% — and remit it to the tax authority, so you usually receive the dividend net. This tool shows both the amount withheld and the net you receive.

How are foreign dividends treated?

Dividends from abroad are generally taxable in Israel at the same 25% or 30% rates, with a credit for foreign tax already withheld under a tax treaty. This calculator models the domestic rate only; for treaty foreign-tax credits, consult an adviser.

Is this a substitute for advice?

No. It is a quick estimate of dividend tax at the headline Israeli rates. Personal circumstances, treaty relief, exempt vehicles and the precise surtax computation can change the figure. Confirm with a qualified Israeli tax adviser before relying on it.

Israel Dividend Tax Calculator

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This Israel dividend tax calculator shows how much of a dividend you keep after Israeli tax. It applies the 25% ordinary rate, the 30% substantial-shareholder rate for holders of 10% or more, and an optional 3% surtax on high incomes, then reports the tax withheld and your net income.

How it works

Israel taxes resident dividends at a flat rate withheld at source:

25% for an ordinary shareholder.
30% for a substantial shareholder — someone holding 10% or more of the company in the 12 months before the distribution.

A surtax (mas yasaf) of 3% can apply to income above a high annual threshold. When enabled, it is added to the base rate:

effective rate = base rate + (surtax ? 3% : 0%)
tax            = gross dividend × effective rate
net dividend   = gross dividend − tax

Example

A ₪50,000 ordinary dividend is taxed at 25%, so ₪12,500 is withheld and you keep ₪37,500. If you are a substantial shareholder and the surtax applies, the rate becomes 33% (30% + 3%), the tax is ₪16,500 and you keep ₪33,500.

Notes

This models the headline domestic rates only. It does not handle foreign-tax credits under treaties, exempt vehicles, or the precise surtax computation across all income types. Confirm with a qualified Israeli tax adviser. Not financial advice.