Income tax + new immigrant exemption — impact on salary

Credit points — the full schedule

For aliyah from 1.1.2022, under s.35 of the Income Tax Ordinance:

The value of a credit point in 2026 is ₪242 per month (₪2,904 a year). Total benefit across the 54 months: about ₪24,700.

This page previously said "1 point + 0.5 extra for the first 3 years". No such schedule exists.

What it actually means, in numbers

On ₪10,000 gross (2026):

• an established resident nets about ₪8,816
• an oleh in year one, about ₪9,058 (a ₪242 difference)
• an oleh in months 13-30, about ₪9,392 (a ₪575 difference, because income tax falls to zero)

That is the ceiling. An established resident on that salary pays ₪575 in income tax in total, so no larger saving is arithmetically possible. This page previously claimed "~₪9,200 net vs ~₪7,800" and "15-25% higher" — a ₪1,400 gap cannot happen.

Foreign-income exemption

The 10-year exemption on foreign income still applies to someone making aliyah today. Amendment 272 (2024) removed only the exemption from reporting, from tax year 2026 — the tax exemption itself remains.

First home — a correction

Olim have no capital-gains (מס שבח) exemption on a first home. The real benefit is a reduced purchase tax (מס רכישה), in a window running from one year before aliyah to the end of the seventh year after, for a single apartment for the oleh's own residence. The brackets differ by when you entered the scheme — check with the Tax Authority before buying.

How to claim

Credit points are claimed through form 101 with your employer. For a retroactive correction, file form 135 (short annual return), up to six years back. (Form 116, which this page named, is a tax-coordination request — a different document entirely.)

See also

• Immigrant tax relief — right
• Klita basket — right