Israel is situated along the margins of the seismically active Dead Sea Transform (DST) fault system, which is responsible for several strong historical earthquakes. In this paper, we suggest improvements and modifications to the seismo-tectonic model of Israel and incorporate them into the hazard calculations, to study their effects on the resulting hazard. First, a homogeneous Mw based catalog is created which is subsequently declustered using the Gardner and Knopoff (1974) windowing algorithms. Then, a smooth gridded-seismicity model is created, using the Frankel (1995) approach with subjectively chosen fixed correlation distance of 30km. Two approaches are used to incorporate the gridded seismicity into the hazard code, representing different on-fault/off-fault interactions. Finally, a full PSHA calculation is performed using the hazard code-HAZ45.2, generating hazard maps for the entire country. The maps, as well as specific values at 6 cities, are compared to study their sensitivity to the underlying seismic source assumptions.