Study Reveals Widening Income Tax Gap Between Haredi and Non-Haredi Households
Translated & summarized from Calcalist by baba
A study by Dr. Gabi Gordon reveals that the income tax payment gap between non-Haredi and Haredi Jewish households in Israel has widened to nearly 1,000% between 2009 and 2024. Non-Haredi households' tax payments increased by 92% in real terms, while Haredi households' payments rose by only 12.5%. The research also found that Haredi men earn significantly more if they leave yeshiva earlier, and that Haredi women are disproportionately employed in the lower-paying education sector.
The story in 6 lines · by baba
- Income tax payments by non-Haredi households rose 92% while Haredi households' payments grew 12.5% from 2009-2024.
- The income tax gap between non-Haredi and Haredi households has widened to nearly 1,000%.
- Haredi men leaving yeshiva earlier earn significantly higher incomes by age 40.
- Only 4% of young Haredi men served in the IDF, compared to 89% of non-Haredi Jews.
- 51% of Haredi women study education, leading to a majority working in the sector.
- A growing number of Haredi girls are taking matriculation exams.
A new study by Dr. Gabi Gordon of the Israel Democracy Institute highlights a dramatic increase in the income tax payment gap between non-Haredi Jewish households and Haredi households. Between 2009 and 2024, the average real-terms payment to income tax by non-Haredi households rose by 92%, from 1,480 shekels to 2,840 shekels. In contrast, Haredi households saw a more modest 12.5% increase, from 240 to 270 shekels in real terms. This has caused the gap in tax payments to widen significantly, nearly doubling from 517% in 2009 to 952% in 2024, approaching a tenfold difference.
The research also indicates that Haredi men who leave yeshiva earlier tend to have significantly higher incomes by age 40, suggesting a substantial economic cost to prolonged yeshiva study. For instance, Haredi men who never attended a large yeshiva earn 71% of the average non-Haredi Jewish man's salary, while those who left by age 30 earn 63%, and those who left between 30 and 40 earn 49%.
A key reason for these wage disparities lies in employment sectors. Only 30.2% of Haredi men work in education, compared to 5.5% of non-Haredi Jewish men. Furthermore, only 4.8% of Haredi men are employed in high-tech, versus 19.1% of their non-Haredi counterparts.
The study also addresses Haredi women's education and employment. Despite an oversupply of teachers and a lack of economic viability, 51% of Haredi women study education, with 39% pursuing teaching seminars. This leads to 42.5% of Haredi women working in education, compared to 19.5% of non-Haredi Jewish women. Only 4.9% of Haredi women are in high-tech, compared to 9.4% of non-Haredi women.
Regarding military service, the study found that only 4% of young Haredi men (aged 20-29) served in the IDF, compared to 89% of non-Haredi Jews. The research notes that many Haredi conscripts are already on the path to leaving the Haredi community. The study also observed an increase in Haredi girls taking matriculation exams, with a significant rise in those taking combined matriculation and external exams, suggesting a potential shift towards higher education.
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