In 2027, the taxable benefit of a company car in Israel (shovi shimush) will still be calculated the same way: 2.48% a month of the car's adjusted price, up to a ceiling. The reductions for electric, plug-in and hybrid cars are set by a temporary order through December 31, 2028, so they apply throughout 2027. The ceiling and the reduction amounts are indexed every January 1, and the 2027 figures have not been published yet. The 2026 baseline: a ceiling of ILS 596,860 and monthly reductions of ILS 1,380 for electric, ILS 1,150 for plug-in and ILS 580 for hybrid cars.
Last updated: November 6, 2026. The official 2027 amounts (the adjusted-price ceiling and the green-car reductions) have not been published yet. We will update this page when the Israel Tax Authority releases them.
If your employer or your own company gives you a car you can also use privately, Israel taxes you on a monthly benefit called shovi shimush. In 2027 it will be calculated the same way as today: 2.48% a month of the car's adjusted price, up to a ceiling, minus a reduction for electric, plug-in and hybrid cars. That reduction is locked in by a temporary order through December 31, 2028. What changes on January 1, 2027 are the amounts: the ceiling and the reductions are indexed, and the 2027 figures are not out yet.
The benefit is added to your gross salary for tax purposes. You never receive it in cash, but you pay income tax on it at your marginal rate, so the 2027 tax brackets matter here too.
From the Tax Authority's 2026 payroll withholding tables (Hebrew):
For example, a gasoline car with a 2026 adjusted price of ILS 200,000 carries a benefit of 200,000 × 2.48% = ILS 4,960 a month. An electric car at the same price gets ILS 1,380 off, for ILS 3,580. We are not giving a 2027 example, because the 2027 amounts have not been published.
Even with no change to the rules, the amount on your pay slip for the same car can go up a little in January. Under the regulations, from the year after the car was first registered, its adjusted price is multiplied by an index ratio: the price index known on January 1 of the tax year, divided by the index known on January 1 of the registration year. If prices rose during 2026, your car's adjusted price rises for 2027, and so does the benefit, up to the ceiling. There is no indexation in the year the car is first registered.
These amounts appear in the Tax Authority's annual withholding tables, and usually in its vehicle benefit calculator as well.
If you own an Israeli company and are deciding whether the company should provide you with a car, the benefit is part of your overall pay package, alongside salary and dividends; see our year-end tax checklist for the decisions worth closing before December 31. Thinking of moving your business into a company? Start with switching from osek murshe to a company. Want to know what your car's benefit will look like in 2027? Book a consultation call with our English-speaking team or call +972-52-448-5784. Meetings are by appointment in the Tel Aviv area.
It has not been published yet. The vehicle benefit regulations index the ceiling every January 1 and round it to the nearest ILS 10. The ceiling is ILS 596,860 in 2026 and was ILS 583,100 in 2025.
Yes. Under the temporary order regulations, the reductions for electric, plug-in and hybrid cars run through December 31, 2028. The amounts are indexed every January 1, and the 2027 amounts have not been published yet.
No. The ceiling and the reductions are set in the vehicle benefit regulations, and they were updated in both 2025 and 2026 while the income tax brackets were frozen.
Possibly. From the year after first registration, a car's adjusted price is linked to the price index known on January 1 of each tax year. If the index rose, the benefit on the same car rises slightly, up to the ceiling.
In the Tax Authority's vehicle benefit calculator, once it has been updated for tax year 2027. You need the registration year, vehicle type, manufacturer code and model code from the car's registration.