A tax refund (החזר מס) is money you paid in income tax beyond what you owed by law, and it is waiting for you to ask for it back. The Israel Tax Authority (רשות המסים) does not return it on its own initiative to salaried employees who do not file an annual tax return, so if you never check, you simply give it up. Your entitlement lasts up to 6 years from the end of the tax year, which means that in 2026 you can claim refunds for the years 2020 to 2025.
Want to skip the reading? The eligibility check on our site takes three minutes, is free, and gives you an initial answer right away.
Why do you end up overpaying tax in the first place?
Tax on your salary is deducted at source by your employer, based on a simple assumption: that your current monthly income will stay the same all year, and that the personal details you declared on Form 101 (טופס 101) are complete and up to date. In practice, life does not follow that assumption. Any gap between the assumption and reality almost always turns into excess tax deducted from you.
The 12 most common situations that entitle you to a tax refund
1. You changed jobs or stopped working partway through the year
This is the most common case. If you worked only part of the year, because of dismissal, resignation, unpaid leave (חל"ת) or moving between jobs, then during the months you worked you paid tax at the brackets of a full year. Recalculating over the whole year almost always shows you paid too much.
2. You worked two jobs at the same time without tax coordination
Without tax coordination (תיאום מס), tax is deducted from your second salary at the maximum rate. If the total tax deducted is higher than your actual tax liability, the difference is owed back to you.
3. You received unemployment benefits, maternity allowance or reserve duty compensation
Wage-replacement benefits from National Insurance (ביטוח לאומי) are taxable, and the tax on them is also deducted without looking at the whole year. A year with a period of unemployment or maternity leave is an excellent candidate for a refund.
4. You made private contributions to a pension, provident fund or life insurance
Private contributions, including life insurance that comes with a mortgage, entitle you to a tax deduction and a tax credit that are not given through your payslip. You only get them by submitting a refund request.
5. You donated to recognized institutions
Donations to public institutions recognized under section 46 of the Income Tax Ordinance give you a tax credit of 35% of the amount donated, above a minimum annual amount. Keep the original receipts.
6. You completed an academic degree or a teaching certificate
Graduates with a bachelor’s degree are entitled to one tax credit point and graduates with a master’s degree to half a point, in the years after completing their studies. If you did not use them through your employer, you can get them retroactively.
7. You were discharged from the IDF or completed national service
Discharged soldiers and national service volunteers are entitled to tax credit points during the first years after discharge. If you changed jobs during that period, you probably did not receive them in full.
8. You have children under 18
Parents are entitled to tax credit points for their children, with increased benefits for younger children. Changes in family status partway through the year are a classic source of credits that go unclaimed.
9. You are a single parent or you pay child support
Single-parent families, divorced parents who pay child support and parents of children with disabilities are entitled to additional tax credit points, which are often not reflected in the payslip.
10. You or a family member has a medical condition
Keeping a family member in a nursing facility, or supporting a child with a disability or an incapacitated person, entitles you to credits and tax relief. Some of these require the appropriate medical certificates.
11. You lost money on the stock market or paid tax on gains
Capital gains tax is deducted at source on every profitable sale, without offsetting losses from other securities or from previous years. With Form 867 (טופס 867) from your bank, you can offset the losses and get some of the tax back.
12. You made aliyah or returned to Israel
New immigrants are entitled to tax credit points on a sliding scale during their first years in Israel, and long-term returning residents to similar benefits. Here too, if you did not claim them, you did not get them.
How much money can you get?
The refund depends on your income, the tax rate you paid and the reason you are eligible, so there is no standard amount: it ranges from hundreds of shekels to tens of thousands of shekels in cases that build up over several years. The refund is paid with linkage differentials and interest from the end of the tax year, so even a request for older years is worth making.
How do you actually check and claim?
- Collect Form 106 (טופס 106) from every employer for each relevant year. The full Form 106 guide is here.
- Add supporting documents for your reason for eligibility: National Insurance, pension, donations, degree, Form 867.
- Submit a tax refund request to the Israel Tax Authority, on paper or online.
- The refund is transferred directly to your bank account.
You can do all of this yourself with the Israel Tax Authority, or you can let us check for you and make sure no credit is forgotten. Start with a free eligibility check.
Keep in mind: tax year 2020 closes for claims at the end of 2026. A request not submitted by then is lost for good.