What a credit point is
A credit point is a fixed amount taken off the income tax you owe. In 2026 one point is worth 242 shekels a month (2,904 a year), according to the Tax Authority’s 2026 deduction tables and the Knesset research center. Every resident gets a basic 2.25 points, and women get half a point more; children, degrees, military service and aliyah can add more.
Your employer applies the points each month, based on what you declared on Form 101. That is why a missing tick on the form means paying too much tax until someone notices.
The oleh schedule
Extra points for olim who arrived on or after 1 January 2022, in the monthly terms your payslip uses. The benefit runs for 54 months (four and a half years) from your first month in Israel as an oleh. Regular army service and post-secondary study are not counted in those months, and an absence abroad of six months to three years can be left out on request.
| Months after aliyah | Extra points each month | How the Tax Authority writes it |
|---|---|---|
| Months 1 to 12 | 1 | 1/12 of an annual point per month |
| Months 13 to 30 | 3 | 1/4 of an annual point per month |
| Months 31 to 42 | 2 | 1/6 of an annual point per month |
| Months 43 to 54 | 1 | 1/12 of an annual point per month |
New in 2026: tax exemption on income earned in Israel
On top of credit points, a temporary law in force since 31.03.2026 exempts new olim and veteran returning residents who arrived between 05.11.2025 and 31.12.2026 from income tax on salary and business income earned in Israel, up to a yearly ceiling. Passive income (interest, dividends, rent, capital gains) is not included. The Tax Authority publishes the conditions and how to claim in a separate circular, so check it, or ask payroll, before you count on it.
| Tax year | Exempt up to |
|---|---|
| 2026 | ₪600,000 |
| 2027 | ₪1,000,000 |
| 2028 | ₪1,000,000 |
| 2029 | ₪350,000 |
| 2030 | ₪150,000 |
How to claim them
Employees: Form 101
In section ח (chet), box 4, tick the line that begins אני עולה חדש/ה (I am a new immigrant), write your aliyah date and attach a copy of your Teudat Oleh.
Self-employed: Form 1301
The annual income tax return for individuals. The Ministry of Aliyah and Integration’s rights guide names it as the route for self-employed olim.
Check the payslip
Find the נקודות זיכוי line on your tlush maskoret and make sure it went up after you handed in the form.
Missed some months?
The rights guide says olim can get the tax back retroactively for up to six years, by applying on the Tax Authority’s website.
Tax words you will meet
- נקודת זיכויnekudat zikuiA tax credit point. The plural is נקודות זיכוי (nekudot zikui).
- שווי נקודת זיכויshovi nekudat zikuiThe value of one point.
- זיכוי ממסzikui mi-masTax credit.
- פטור ממסptor mi-masTax exemption.
- מס הכנסהmas hachnasaIncome tax.
- רשות המסיםrashut ha-misimThe Israel Tax Authority.
- מדרגות מסmadregot masTax brackets.
- שנת מסshnat masTax year, January to December.
- החזר מסhechzer masTax refund.
- תיאום מסteum masTax coordination when you have more than one source of income.
- פקיד שומהpkid shumaAssessing officer; also the name of your local tax office.
- עצמאי / עצמאיתatzmai / atzmaitSelf-employed, man / woman.
- שכיר / שכירהsachir / schiraSalaried employee, man / woman.
- תושב חוזר ותיקtoshav chozer vatikVeteran returning resident, a separate status with its own tax benefits.
- אזור אישיezor ishiYour personal area on the Tax Authority website.
Asking payroll or an accountant
Male form first, female form second.
| English | Hebrew | Say it |
|---|---|---|
| I’m a new immigrant. Are my credit points included? | אני עולה חדש / עולה חדשה. נקודות הזיכוי שלי נכללו? | ani oleh chadash / olah chadasha. nekudot ha-zikui sheli nichlelu |
| How many credit points do I have on the payslip? | כמה נקודות זיכוי יש לי בתלוש? | kama nekudot zikui yesh li ba-tlush |
| I made aliyah in March 2025. | עליתי במרץ 2025. | aliti be-mertz alpayim esrim ve-chamesh |
| I want to claim a tax refund for last year. | אני רוצה לבקש החזר מס על השנה שעברה. | ani rotze / rotza levakesh hechzer mas al ha-shana she-avra |
| I served in the army. Is that period counted? | שירתתי בצבא. התקופה הזאת נספרת? | sherateti ba-tzava. ha-tkufa ha-zot nisperet |
| I was abroad for eight months. | הייתי בחו״ל שמונה חודשים. | hayiti be-chul shmona chodashim |
| Do I need a tax coordination? | אני צריך / צריכה תיאום מס? | ani tzarich / tzricha teum mas |
| I’m self-employed. Which form do I file? | אני עצמאי / עצמאית. איזה טופס מגישים? | ani atzmai / atzmait. eize tofes magishim |
Read tax letters and forms in English
baba translates Tax Authority letters, Form 101 and payslips from a photo or PDF, with every figure intact. It helps you understand them; it is not tax advice.
- Photo and PDF translation with baba Pro
- Numbers and dates kept exactly
- Write to payroll in polite Hebrew
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Frequently asked questions
How much is one tax credit point worth in 2026?
242 shekels a month, or 2,904 a year, according to the Tax Authority’s 2026 tables.
How long do olim get extra credit points?
For olim who arrived on or after 1 January 2022, 54 months (four and a half years). For earlier olim, 42 months.
Do I get the oleh points automatically?
No. Employees claim them on Form 101, section ח, with a copy of the Teudat Oleh. Self-employed olim claim them through their annual return.
I didn’t claim my points last year. Is the money lost?
No. The Ministry of Aliyah and Integration says you can claim the tax back retroactively for up to six years through the Tax Authority’s website.
Official sources
Rules, amounts and deadlines change. Check the official page before you act on anything here.
- Tax Authority: monthly deductions booklet 2026 (encouraging aliyah, temporary order)checked September 29, 2026
- Ministry of Aliyah and Integration: Rights guide for new olim, tax benefits (Hebrew)checked September 29, 2026
- Israel Tax Authority: Income tax guide for new olim (Hebrew)checked September 29, 2026
- Israel Tax Authority: Know your rights and obligations 2025 (PDF, Hebrew)checked September 29, 2026
- Israel Tax Authority: Monthly deduction tables, January 2026 (PDF, Hebrew)checked September 29, 2026
- Knesset Research and Information Center: Income tax brackets from 2026 (PDF, Hebrew)checked September 29, 2026
- Nefesh B’Nefesh: Aliyah rights and benefits (income tax)checked September 29, 2026