Israeli Budget Planner

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

• Tel Aviv: 85-130
• Jerusalem: 55-80
• Haifa: 45-65
• Beer Sheva: 35-50
• Raanana: 70-95
• Herzliya: 75-100

• 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%)

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

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

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.

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 ~242 NIS/month (2025). 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 and varies by municipality. Tel Aviv residential ranges from 45-120 NIS/sqm/year depending on zone. Check the specific municipality's rate table.