Tax Refund for Olim and New Immigrants in Israel (2026)

New immigrants (olim) are entitled to income tax credit points (נקודות זיכוי) in their first years in Israel, on top of the 2.25 credit points every Israeli resident receives. In practice, many olim do not get all their points through their payslip: the form given to the employer was not updated, the year of aliyah was a partial year, or they changed jobs along the way. In these cases more tax was deducted from you than necessary, and you can claim the difference back up to 6 years. That is exactly what a tax refund for olim is.

Credit points for olim: how many and for how long

The number of points and the length of the entitlement depend on your date of aliyah. The period is counted from the date on your oleh certificate (תעודת עולה). In 2026 one credit point is worth ₪2,904 a year, which is ₪242 a month.

You made aliyah on or after January 1, 2022: 54 months

• First 12 months: 1/12 of a point per month, which is one point on an annual basis.
• Next 18 months: 1/4 of a point per month, which is 3 points on an annual basis.
• Following 12 months: 1/6 of a point per month, which is 2 points on an annual basis.
• Last 12 months: 1/12 of a point per month.

A total of 8.5 credit points, spread over four and a half years.

You made aliyah before 2022: 42 months

• First 18 months: 1/4 of a point per month.
• Next 12 months: 1/6 of a point per month.
• Last 12 months: 1/12 of a point per month.

A total of 7.5 credit points, spread over three and a half years.

The period runs continuously, including months in which you had no income, so a month without work is not "saved" for later. The exception is regular IDF service and studies at a post-secondary institution: these periods are not counted, and you receive the rest of the benefit after your discharge or after you finish your studies. All the other credit points are explained in our tax credit points guide.

Why olim in particular get tax refunds

• Form 101 was not updated. For your employer to give you the points, you need to fill in Form 101 (⁨טופס 101⁩) when you start working and at the start of every tax year, and attach your oleh certificate. If you did not mark that you are an oleh, or did not attach the certificate, your payslip came without the points.
• Your year of aliyah was a partial year. The credit is set for a full tax year: if you worked for only part of the year, you may use all the points for that year against the tax on your salary in the months you worked. When that did not happen on your payslip, you get the difference through a tax refund request.
• You changed jobs or worked two jobs. This is very common in the first years in Israel, and each employer deducts tax as if it were your only one. You can read about this and other cases in our guide who is eligible for a tax refund.
• The tiers change in the middle of the year. The number of points changes according to your months in Israel, not according to tax years. A move from one tier to the next that was not updated in your salary can leave points unused.
• Your income from work was low. Olim credit points apply to all taxable income, not only to salary. If you did not use them against your salary, you can also use them against tax on other income, such as interest on deposits or capital gains, through a tax refund request after the end of the year.

More tax benefits for olim and returning residents

Tax exemption on foreign income for 10 years

For 10 years from their aliyah, olim are exempt from Israeli tax on income from outside Israel, including a pension from abroad, capital gains on assets abroad and ongoing income earned there. The same exemption is given to a veteran returning resident (תושב חוזר ותיק), meaning someone who returned to Israel after at least 10 consecutive years abroad. An adjustment year, if you asked for one, is included within the 10 years.

Olim and veteran returning residents who arrived by the end of 2025 are also exempt from reporting this income. Anyone who made aliyah or returned on or after January 1, 2026 must report their income and assets abroad to the Israel Tax Authority, even though the tax exemption on them remains in force.

The new exemption on income in Israel: for those who arrived or returned from November 2025

The Law for Encouraging Aliyah and Return to Israel (Temporary Provision), 5786-2026 (חוק עידוד עלייה לישראל וחזרה אליה), grants an income tax exemption on income from personal exertion earned in Israel, such as salary or business income. It applies to olim who became Israeli residents for the first time, and to veteran returning residents who returned, between November 5, 2025 and December 31, 2026. Anyone who made aliyah before November 5, 2025 is not included, but the credit points continue to apply to them as usual.

• 2026: exemption up to ₪600,000, in proportion to the part of the year in which you were an Israeli resident.
• 2027 and 2028: up to ₪1,000,000 each year.
• 2029: up to ₪350,000.
• 2030: up to ₪150,000.

For income from a relative, or from a company that the person or their relatives hold at least 25% of, the ceiling is lower: ₪140,000 a year through 2029. Interest, dividends, rent and capital gains are not included in the exemption. Anyone who stops being an Israeli resident in 2028 or 2029 and stays in Israel fewer than 75 days that year loses the entire exemption, including for the previous years. You receive the exemption through a tax refund request or the annual tax return after the end of the tax year, and the Israel Tax Authority has also published conditions for receiving part of it during the year through tax coordination (תיאום מס).

And what about returning residents?

The credit points described above are given to olim. Returning residents are generally not entitled to them, except for certain statuses that the law treats as equal to olim, so it is worth checking which status the Ministry of Aliyah and Integration gave you. The main benefits for a veteran returning resident are the exemption on foreign income and the new exemption on income in Israel, depending on the date of return.

How to get the refund

1. Collect Form 106 (⁨טופס 106⁩) from every employer, for each relevant year.
2. Attach your oleh certificate, or a returning resident certificate from the Ministry of Aliyah and Integration.
3. File a tax refund request with the Israel Tax Authority for each year separately. In 2026 you can claim the years 2020 to 2025.

This information is general and is not tax advice. In complex cases, such as income from abroad or a business, it is worth contacting a professional or the business information center for olim and returning residents of the Ministry of Aliyah and Integration, at *8115.

Frequently asked questions about tax refunds for olim

I made aliyah in 2021. Am I entitled to 54 months of credit points?

No. The extension to 54 months and 8.5 points applies to those who made aliyah on or after January 1, 2022. Those who arrived earlier are entitled to 42 months and 7.5 points.

I did not work in my first months after aliyah. Are the points lost?

The period runs from the date on your oleh certificate even when you have no income. However, the credit is set for each tax year, so if you worked for only part of the year you can use all the points for that year against the tax on your salary in the months you worked.

How many years back can I claim a tax refund?

Up to 6 years from the end of the tax year. In 2026 you can file requests for the years 2020 to 2025, and 2020 closes at the end of 2026.

I made aliyah in 2024. Does the new 2026 exemption apply to me?

No. The new exemption on income in Israel applies only to those who became Israeli residents between November 5, 2025 and December 31, 2026. The credit points for olim still apply to you according to your date of aliyah.

Do I need to report income from abroad to the Israel Tax Authority?

Income from abroad is exempt from tax for 10 years from aliyah. Those who made aliyah by the end of 2025 are also exempt from reporting it. Those who made aliyah on or after January 1, 2026 must report it, even though it remains tax-exempt.