Income Tax Changes for 2026 Budget Proposal: Key Points Explained
Introduction
As part of its 2026 economic plan, the Israeli Ministry of Finance has proposed significant changes to income tax brackets aimed at reducing the tax burden on the middle class and higher earners.
Expansion of Income Tax Brackets
The proposal includes an expansion of the income tax brackets for rates of 20% and 31%. This change is designed to lower the overall tax rate for individuals with medium to high income levels, enabling them to keep more of their earnings compared to the current tax structure.
Introduction of Property Tax
In conjunction with the changes to income tax, a new property tax of up to 1.5% will be imposed on unused land that is not designated for agricultural purposes. This measure aims to encourage the utilization of land for development and combat the housing crisis by disincentivizing landholdings that contribute to housing shortages.
Conclusion
These proposed adjustments mark a noteworthy shift in the taxation landscape, specifically targeting the middle-income population to alleviate financial pressure while simultaneously addressing land underutilization through the new property tax. Stakeholders and the public are encouraged to stay informed as these developments unfold.
Meta Description: Discover the proposed changes to Israeli income tax brackets and the introduction of a new property tax in the 2026 budget plan. Understand how these changes will impact the middle class and land usage.
Tags: Income Tax, Property Tax, Israel, 2026 Budget, Tax Brackets, Economic Policy, Middle Class, Land Utilization, Ministry of Finance
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