Israel will experience a series of tax increases, price hikes, and utility cost rises starting on January 1, 2025. The value-added tax will rise from 17% to 18%, affecting the prices of most transactions. Take-home pay will shrink as sums deducted for National Insurance Institute increase. Income tax brackets and tax credit points will be frozen, leaving taxpayers with less disposable income. The surtax on the country's wealthiest will be raised from 3% to 5%. Electricity prices will climb by 3.5% and water prices by 2%. Property rates may be raised by 5.2% in most cities.