Israeli Budget Planner

Key Financial Rates

Rate	Value (Reference)
BOI Interest Rate	4.50% (rates change frequently, verify at boi.org.il)
Prime Rate	BOI + 1.00% = ~5.50%
VAT (Ma'am)	18%
Minimum Wage	Verify current 2026 rate with government sources
Average Wage	~12,500 NIS/month

Mashkanta (Mortgage) Tracks

Track	Rate Type	Range
Prime-linked	Variable	Prime +/- 0.5%
Fixed unlinked	Fixed	4.5%-6.5%
CPI-linked fixed	Fixed + CPI	3.0%-5.0% + CPI
CPI-linked variable	Resets every 5 yrs	2.5%-4.5% + CPI

BOI rules: Max LTV 75% first home, max 33.33% variable rate, max 33.33% CPI-linked.

Arnona by City (NIS/sqm/year, 2024 rates - verify current)

• Tel Aviv: 1,020-1,560
• Jerusalem: 660-960
• Haifa: 540-780
• Beer Sheva: 420-600
• Raanana: 840-1,140
• Herzliya: 900-1,200

Monthly Budget Template (Couple + 1 Child)

• Housing: 4,000-8,000 (25-35%)
• Food: 2,500-4,500 (15-25%)
• Education: 1,500-3,500 (8-15%)
• Transportation: 500-1,500 (3-8%)
• Arnona: 400-800 (3-5%)

Savings Vehicles

• Keren Pensia: Tax-deductible, locked until retirement
• Keren Hishtalmut: Tax-free after 6 years
• Kupat Gemel: Capital gains exempt, 6-year lock

Examples

Example 1: Create a Monthly Household Budget

User says: "Help me plan a monthly budget for a family in Tel Aviv" Actions:

1. Input gross salary, calculate net after tax (brackets: 10%-50%)
2. Deduct Bituach Leumi (3.5%/12%), health tax (3.1%/5%), pension (6.5%)
3. Budget categories: rent/mortgage (30-40%), groceries (15%), transport (10%), utilities (8%), childcare
4. Include arnona estimate for Tel Aviv (varies by zone, ~500-1500 NIS/month)
5. Savings target: keren hishtalmut + pension + emergency fund Result: Complete monthly budget with Israeli-specific deductions and savings plan

Example 2: Evaluate a Mashkanta (Mortgage) Option

User says: "Should I take a fixed or variable rate mortgage in Israel?" Actions:

1. Compare mortgage tracks: Prime-linked, fixed (kvua), CPI-linked (tzamud madad)
2. Calculate monthly payment for each track at current BOI rate
3. Apply Bank of Israel's PTI limit (max 40% of income)
4. Factor in life insurance and structural insurance requirements
5. Compare total cost over 15/20/25 year terms Result: Mortgage comparison with monthly payments and total cost per track

Bundled Resources

Scripts

• scripts/budget_calculator.py -- Calculates Israeli household budget including income tax, Bituach Leumi, health tax, pension deductions, and mashkanta payments. Run: python scripts/budget_calculator.py --help

References

• references/israeli-financial-rates.md -- Current BOI interest rates, mortgage guidelines, arnona rates by city, cost of living benchmarks, and savings vehicle comparisons. Consult when calculating specific financial figures or comparing options.

Recommended MCP Servers

For live financial data, pair this skill with:

MCP Server	What it provides	Install
boi-exchange	Live Bank of Israel exchange rates and interest rate data	Install
israeli-cbs	Consumer Price Index (CPI), housing indices, and economic statistics from the Central Bureau of Statistics	Install
israel-statistics	Additional CBS price indices and inflation-adjusted price calculations	Install
il-budget	Israeli government budget data, procurement contracts, and support payment information	Install
budgetkey	Comprehensive Israeli State Budget data (1997-2025) with full SQL query support	Install

When these MCPs are available, use them for real-time rates and indices instead of the static reference tables above.

Gotchas

• Agents often use US mortgage conventions (30-year fixed rate) for Israeli mortgages. Israeli mashkantaot use a mix of tracks (maslulim): Prime-linked, CPI-linked fixed, CPI-linked variable, and fixed-rate unlinked, with typical terms of 15-30 years.
• Bituach Leumi (National Insurance) deductions are mandatory for all Israeli workers and reduce take-home pay significantly. Agents may omit these from budget calculations, using gross salary as available income.
• Israeli rent is commonly quoted as monthly amounts excluding arnona and va'ad bayit (building maintenance). Agents may compare rents without accounting for these additional fixed costs that can add 500-2,000 NIS/month.
• The Hishtalmut fund (keren hishtalmut) is a unique Israeli savings vehicle with tax benefits. Agents unfamiliar with Israeli financial products may suggest generic savings accounts instead.

Troubleshooting

Error: "Tax calculation doesn't match pay slip"

Cause: Tax credits (nekudot zikui) not properly applied Solution: Every Israeli resident gets 2.25 base credit points. Women get 0.5 additional. New immigrants get extra credits for 3.5 years. Each point is worth approximately 250 NIS/month (verify current 2026 value with tax authorities). Apply credits before calculating tax.

Error: "Arnona amount seems wrong"

Cause: Arnona varies significantly by city, zone, and property classification Solution: Arnona is calculated per square meter annually and varies by municipality. Tel Aviv residential ranges from 85-130 NIS/sqm/year depending on zone. Check the specific municipality's rate table.