Tax gap: Orthodox pay 10.5 times less than other Jewish Israelis

A study by Dr. Gaby Gordon of the Israel Democracy Institute shows that non-ultra-Orthodox Jewish households pay 10.5 times more income tax than ultra-Orthodox ones. Over 15 years, the gap has nearly doubled. The data also cover employment, education, and military service in the ultra-Orthodox sector.

A new study by Dr. Gaby Gordon of the Israel Democracy Institute, reported by Calcalist on November 1, found that non-ultra-Orthodox Jewish households in Israel pay on average 10.5 times more income tax than ultra-Orthodox ones. Over 15 years, from 2009 to 2024, this gap nearly doubled: the average payment by non-ultra-Orthodox rose by 92% (from 1,480 to 2,840 shekels per month), while ultra-Orthodox payments rose only 12.5% (from 240 to 270 shekels). For most of this period, the government was led by Benjamin Netanyahu. The gap in National Insurance contributions narrowed slightly: a non-ultra-Orthodox family now pays 2.4 times more. The study also shows that the earlier an ultra-Orthodox man leaves yeshiva, the higher his earnings by age 40. In education, 30.2% of ultra-Orthodox men work versus 5.5% of others, while in high-tech the figures are 4.8% versus 19.1%. Among ultra-Orthodox men aged 20–29, only 4% served in the IDF, compared to 89% of other Jews. Among girls, the share taking matriculation exams is rising, but 51% choose teaching specialties, creating a surplus of female teachers.