The 2026 olim tax exemption: be resident by 31 December

Who qualifies

New immigrants holding an oleh visa, and veteran returning residents (ten or more consecutive years abroad, with a Veteran Returning Resident certificate from the Ministry of Aliyah and Integration), whose centre of life moves to Israel between 5 November 2025 and 31 December 2026. The date that counts is when your life actually moves here, not when your file was opened.

Sources:Gornitzky & Co. (2026-08-03)Herzog Fox & Neeman (2026-04-06)

What is exempt

Israeli-source income from personal exertion: salary and business or professional income you earn by working in Israel. Income a foreign company earns in Israel solely from your personal services here in 2026 to 2030 can also be exempt.

Agreed by two independent legal readings, one summarising the Tax Authority’s own circular. Confirm your case with a tax adviser.

Sources:Herzog Fox & Neeman (2026-04-06)Gornitzky & Co. (2026-08-03)

Income from a relative is capped lower

If the income comes from a relative (for example a family business that employs you), the exempt amount is capped at NIS 140,000 a year from 2026 to 2029, and it can only be claimed on the annual tax return.

Agreed by two independent legal readings, one summarising the Tax Authority’s own circular. Confirm your case with a tax adviser.

Sources:Gornitzky & Co. (2026-08-03)Herzog Fox & Neeman (2026-04-06)

When it is clawed back

If you stop being an Israeli tax resident in 2028 or 2029 and spend fewer than 75 days in Israel in that year, the exemption is lost retroactively. Both conditions must hold; a temporary absence alone does not cost you the relief.

Agreed by two independent legal readings, one summarising the Tax Authority’s own circular. Confirm your case with a tax adviser.

Sources:Gornitzky & Co. (2026-08-03)Herzog Fox & Neeman (2026-04-06)

How it is claimed

Employees can ask for tax coordination so less is withheld during the year, and the self-employed can ask to reduce their advance payments. That in-year relief is capped (NIS 300,000 or NIS 500,000 a year depending on filing status) and is subject to a test of days spent in Israel in 2016 to 2025. Anyone who does not qualify for it in-year claims the full benefit on the annual tax return.

Agreed by two independent legal readings, one summarising the Tax Authority’s own circular. Confirm your case with a tax adviser.

Sources:Gornitzky & Co. (2026-08-03)Israel Tax Authority, gov.il

If you arrived before November 2025

You are not eligible, even if you were not yet an Israeli tax resident that year. Electing an acclimation year does not move your immigration date for this purpose.

Agreed by two independent legal readings, one summarising the Tax Authority’s own circular. Confirm your case with a tax adviser.

Sources:Gornitzky & Co. (2026-08-03)

Why other sites may show different numbers

The November 2025 government draft promised 0% tax in 2026 and 2027 with NIS 1,000,000 caps. The law the Knesset approved on 30 March 2026 is different: the caps above, a prorated 2026 and a five-year schedule. If a figure you saw elsewhere does not match, check its date.

Sources:Herzog Fox & Neeman (2026-04-06)