Calculate your Section 46 charitable donation tax saving in Israel. Enter annual income and total donations to see the deductible amount, tax saving at your marginal rate, and effective donation cost in ILS.
Enter your annual income and total qualifying donations to calculate your Section 46 tax saving and the effective cost of your donation after tax relief.
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How Section 46 donation deductions work in Israel
Israel incentivises charitable giving through Section 46 of the Income Tax Ordinance. When you donate to an approved institution, you can deduct the donation from your taxable income, provided it exceeds 190 ILS for the year and does not exceed 30 percent of your income. The tax saving is calculated at your marginal rate. For a taxpayer with an income of 200,000 ILS (marginal rate of 31 percent in 2025), every 1,000 ILS donated saves approximately 310 ILS in income tax. The effective cost of the donation to the donor is therefore 690 ILS, while the charity receives the full 1,000 ILS.
Which institutions qualify for Section 46 deductions?
Only institutions with a specific Section 46 approval from the Israel Tax Authority qualify. This approval is separate from having a non-profit (Amuta) registration. Before donating with the intention of claiming a deduction, verify the organisation appears on the Tax Authority approved list. Common qualifying institutions include Hebrew University, Technion, Weizmann Institute, major Israeli hospitals (Hadassah, Sheba, Rambam), and many registered charities working in education, welfare, and social services. The charity must provide you with a receipt including their Section 46 number and the donation amount to support your tax return claim.
Practical tips for maximising donation tax relief in Israel
If you plan to make several donations during the year, consider consolidating them into one or two approved institutions to ensure the 190 ILS threshold is clearly met and to simplify your tax reporting. For higher earners in the 47 to 50 percent bracket, the net cost of a 10,000 ILS donation is only 5,000 to 5,300 ILS after tax relief. Donating appreciated securities (stocks or mutual fund units) rather than cash can be particularly efficient: you avoid capital gains tax on the appreciation and also claim the full market value as the donation amount. Self-employed individuals file their donation deductions on the annual Doch (tax return) due by April 30 for the previous calendar year.
Frequently asked questions
What is Section 46 of the Israeli Income Tax Ordinance?
Section 46 of the Income Tax Ordinance grants a tax deduction or credit to Israeli taxpayers who donate to approved public institutions (Mosad Tzibburi Meooshar). The institution must hold a specific Section 46 approval certificate issued by the Tax Authority. Approved institutions include universities, hospitals, registered charities (Amutot) with Section 46 status, and certain cultural and educational organisations. The donation must be in cash or marketable securities. Donations of services or in-kind goods do not qualify. The list of approved institutions is published on the Israel Tax Authority website.
How much of my donation is tax-deductible in Israel?
Donations above the minimum threshold of 190 ILS in the tax year and up to a maximum of 30 percent of your taxable income (or 9,300,000 ILS in absolute terms, whichever is lower) are deductible. If your total qualifying donations in a year are less than 190 ILS, you receive no deduction. If your donations exceed 30 percent of your income, the excess can be carried forward to the following tax year. The deduction applies at your marginal income tax rate, so a taxpayer in the 31 percent bracket saves 31 ILS per 100 ILS donated, while someone in the 50 percent bracket saves 50 ILS per 100 ILS donated.
What is the marginal income tax rate in Israel for 2025?
Israel has six income tax brackets in 2025. The rates are: 10 percent on income up to 81,480 ILS; 14 percent up to 116,760 ILS; 20 percent up to 187,440 ILS; 31 percent up to 260,520 ILS; 35 percent up to 557,640 ILS; and 47 percent above 557,640 ILS. Higher earners also pay the 3 percent surtax on income above 721,560 ILS, making the effective top rate 50 percent. Your marginal rate is the rate that applies to your last (highest) shekel of income, and this is the rate used to calculate the tax saving on your Section 46 donations.
Can I carry forward unused donation deductions in Israel?
Yes. Under Section 46, if your qualifying donations exceed 30 percent of your taxable income in a given year, the unused deduction can be carried forward and claimed in the following tax year. This is useful for taxpayers who make a large one-time donation, such as donating shares or property that has appreciated in value. The carry-forward is unlimited in number of years but must be used before the donation loses its eligibility. To ensure your donation qualifies, always obtain a receipt from the charity confirming their Section 46 approval number and the amount donated.