How much tax do you pay on crypto profit in Israel?
The short answer
An individual pays 25% on the real capital gain, and a company is charged that tax year’s statutory corporate tax rate.
In brief
- Individual
- 25% on the real gain
- Substantial shareholder
- 30%, for assets where that definition applies
- Company
- That tax year’s corporate tax rate
- Calculation basis
- The gain alone, not the sale amount
- Inflation indexation
- The inflationary part is separated from the real gain
- Loss offset
- Realized losses are offset against gains
What exactly is the tax applied to?
Tax applies to the gain, not to the sale amount: the difference between the proceeds received on sale and the original price the asset was bought at.
Selling a coin for 100,000 shekels that was bought for 80,000 shekels produces a gain of 20,000 shekels, and the tax is calculated on that amount alone.
What is a real gain, and why is it lower than the nominal gain?
A capital gain is split in two: an inflationary part, arising from the rise in the Consumer Price Index over the holding period, and a real part, which is the remainder.
The 25% rate applies to the real part. The longer the asset was held and the higher the inflation over that period, the larger the inflationary part and the smaller the taxable real gain.
Crypto Tax performs that split automatically, using Consumer Price Index data from the Central Bureau of Statistics.
How does offsetting losses change the amount owed?
Realized capital losses are offset against capital gains, so tax is calculated on the net gain rather than on each profitable trade in isolation.
A year with both gains and losses therefore produces a lower liability than looking only at the profitable trades would suggest.
Is there any additional tax beyond the 25%?
High income may attract an additional surtax above a threshold set for each tax year.
Both the threshold and the rate change between tax years, so take the current figure from the Tax Authority’s own site or from a tax advisor.
Sources
Last updated: 2026-09-28
This page is general information only and is not tax advice. For your own circumstances, consult a tax advisor or accountant.