Do Charedim Pay Taxes?
Yes. Despite the common accusation that “Charedim don’t pay taxes,” the reality is far more nuanced—and in most cases, completely false.
Charedim, like all Israeli citizens, pay multiple forms of taxes throughout their lives. These include indirect taxes (which everyone pays regardless of income or employment), as well as direct taxes for those who work—of whom there are tens of thousands, especially among Charedi women and an increasing number of men.
Let’s break it down clearly.
1. Indirect Taxes – Paid by Everyone
Value Added Tax (VAT): Every time someone buys a product or service in Israel, they pay a VAT of 17%. This is true whether the person is a kollel yungerman buying diapers, a rebbetzin shopping for groceries, or a high-tech CEO purchasing a new car.
Since the average Charedi family is large and spends significantly on food, clothing, baby supplies, household goods, rent, transportation, etc.—they pay a substantial amount of VAT each month.
Municipal Taxes (Arnona): Charedim pay property and municipal taxes like everyone else. Even if they receive partial subsidies based on income level or family size (which are available to all citizens who qualify), they are still taxed. In many cities with large Charedi populations, Charedim are the majority of arnona payers.
Excise Taxes: These are hidden taxes placed on fuel, alcohol, tobacco, electricity, and many other items. These taxes hit every household. The electricity powering a Charedi family’s home is taxed. The gasoline in the car is taxed. These are not symbolic taxes—they are significant.
2. Direct Taxes – Paid by Working Charedim
Income Tax: The claim that “Charedim don’t work” is outdated and false. As of 2024, over 55% of Charedi men and over 75% of Charedi women are in the workforce. That’s hundreds of thousands of working taxpayers.
Everyone who works pays income tax based on the national brackets. In fact, due to their growing participation in professions such as education, healthcare, software, and business, the tax contribution from Charedim continues to rise every year.
National Insurance (Bituach Leumi): Even yungeleit in kollel pay monthly Bituach Leumi. This entitles them (like any citizen) to healthcare and basic social services. The yeshivos and kollelim themselves also pay employer-side taxes on stipends.
Health Tax (Mas Briut): Every Israeli adult pays for healthcare through Bituach Leumi contributions, including Charedim. Their participation in the healthcare system is funded—like all citizens—by taxation and usage fees, not by government handouts.
3. Other Contributions Often Overlooked
Chesed and Tzedakah Contributions: While not "taxes" in the governmental sense, Charedi communities contribute staggering amounts of charity, volunteer work, and mutual aid. From Hatzolah and ZAKA to food distribution and interest-free loan societies (gemachim), these efforts often save the State millions annually in social service costs.
This is a communal tax of a higher kind—voluntary, generous, and done with love.
Correcting the Misconception
The idea that “Charedim don’t pay taxes” comes from a misleading oversimplification. Some say: “They don’t serve in the army, so they don’t contribute.” But that’s confusing military service with civic responsibility—and ignoring the very real financial and social contributions of Charedim across Israel.
Even among those learning full-time in yeshiva, many:
- Have spouses who work and pay tax
- Pay full indirect taxes on everything they buy
- Pay municipal taxes and fees
- Rely less on certain State systems due to community-based solutions
What the Gedolim Have Said
Rav Shmuel Wosner zt”l once responded to this accusation in a public shiur:
“If a man learns Torah and his wife works—are they not paying taxes? Are they not contributing? Torah is what protects Am Yisrael, and their income is taxed like anyone else.”
Rav Aharon Kotler zt”l explained decades ago:
“Our yeshiva students may not wear a uniform, but they serve the nation with their souls. And their families give from their flesh to sustain them.”
Conclusion
Yes—Charedim pay taxes. They pay through consumption, they pay through employment, and they contribute through Torah and chesed.
The real question is not whether they pay. It’s whether we’re willing to see past stereotypes—and recognize the full picture of what it means to contribute to Klal Yisrael.
Sources:
- Israel Central Bureau of Statistics (CBS) Labor Market Reports, 2023–2024
- Israel Tax Authority – VAT & Income Tax Data, 2022
- Israel Democracy Institute, “State of the Nation Report,” 2023
- Rav Shmuel Wosner, Shevet HaLevi 9:153
- Rav Aharon Kotler, Michtavei Daas, Letter #14