Israeli Income Tax Breaks

Are There Israeli Income Tax Breaks For New Olim?

Yes. There are discounted income tax payments on income earned in Israel. The income tax reduction works on a point system, where one point is equal to 235 NIS (as of January 2023). New Olim who made Aliyah prior to January 1, 2022 (date not inclusive) will enjoy an income tax credit over a period of 3.5 years. While new Olim, who made Aliyah after January 1, 2022 (date inclusive), will enjoy an income tax credit over a period of 4.5 years. The breakdown is as follows: New Olim receive one point per month (235 NIS) during the first 12 months after Aliyah, three points over the next 18 months, two points over the next 12 months, and one point during the last 12 months, for a total of 4.5 years. Once you begin to work, advise your employer that you are an Oleh, so that you receive this tax benefit.