A tax credit point (נקודת זיכוי, "nekudat zikui") is a fixed reduction in the amount of tax you owe. Each point reduces your annual tax by an amount that is set and updated every year. The logic is simple: first the tax on your income is calculated, and then the value of your points is subtracted from it. If you did not receive all the points you are entitled to, you paid too much tax and can claim the difference back for up to 6 years retroactively.
The basic points: almost everyone gets them
- 2.25 points for every Israeli resident: two resident points plus a quarter of a travel point.
- An extra half point for women.
Your employer applies these automatically through your payslip, provided you filled in Form 101 (טופס 101) properly. The problems start with the points that require you to report them yourself.
The points that get lost, and the money with them
Parents
Fathers and mothers are entitled to tax credit points for each child up to age 18, with increased points in the early childhood years. Changes such as a birth, a divorce or a change of custody partway through the year almost always lead to too little credit on the payslip.
Graduates of an academic degree or a teaching certificate
Graduates with a bachelor’s degree are entitled to one full tax credit point and graduates with a master’s degree to half a point, in the years after completing their studies. Students who graduated and did not update their employer miss out on thousands of shekels.
Discharged soldiers and national service volunteers
They are entitled to tax credit points in the first years after discharge, depending on the length of service. If you changed several jobs after the army, you almost certainly did not use your full entitlement.
New immigrants and returning residents
Olim receive tax credit points on a sliding scale during their first years in Israel. The entitlement shrinks over time, so it is important to claim it on time, including retroactively for years that have already passed.
Single parents, parents paying child support and special family situations
Single parents, divorced parents who pay child support and parents of children with disabilities are entitled to additional points, and some of them can be given to both parents at the same time.
How do you get tax credit points retroactively?
- Collect your Form 106 certificates (טופס 106) from every employer for the relevant years.
- Attach proof of eligibility: discharge certificate (תעודת שחרור), certificate of degree completion (אישור זכאות לתואר), the ID appendix (ספח תעודת זהות) listing your children, oleh certificate (תעודת עולה).
- Submit a tax refund request to the Israel Tax Authority (רשות המסים) for each year in which the points were not used.
Not sure which points you are entitled to? That is exactly what we check. Fill in the free questionnaire and get a clear answer.
Frequently asked questions about tax credit points
Can tax credit points get me back more tax than I paid?
No. Tax credit points can reduce your tax by no more than the amount of tax you actually paid. If you paid little tax, you will benefit from the points only partially.
Do I need an accountant to claim them?
Not necessarily. You can submit the request yourself to the Israel Tax Authority. The advantage of professional help is spotting all your entitlements at once and a correct submission that does not get delayed.
What happens if more than six years have passed?
The entitlement has expired and the money can no longer be claimed, so it is best not to put it off. Tax year 2020 closes for claims at the end of 2026.