The Most Overlooked Salary Boost in Israel
This is educational content, not tax advice. Consult a licensed Israeli tax accountant for advice specific to your situation.
As a new oleh, you receive extra נקודות זיכוי (Nekudot Zikui) (tax credit points) on top of the standard Israeli allocation. These extra points reduce your monthly income tax bill directly, putting more money in your pocket every payday for 3.5 years. The schedule is graduated — generous at the start and tapering off over time.
The Three-Phase Schedule
The olim credit point schedule runs for exactly 42 months from your aliyah date and is divided into three phases:
- Months 1–18: 3 extra credit points per month
- Months 19–30: 2 extra credit points per month
- Months 31–42: 1 extra credit point per month
Each credit point is worth approximately 216 NIS per month in 2026 (the value is updated annually by the Israel Tax Authority). Using this figure:
- Months 1–18: 3 × 216 = 648 NIS/month off your tax bill
- Months 19–30: 2 × 216 = 432 NIS/month off your tax bill
- Months 31–42: 1 × 216 = 216 NIS/month off your tax bill
Note: Some sources cite the credit point value as 242 NIS for 2026 depending on which measure is used — the exact figure for your year is published by Rashut HaMisim. The principle and the schedule remain the same.
Total Tax Savings Over 42 Months
Adding up all three phases gives you the total tax reduction you receive as an oleh during your first 3.5 years, before accounting for your standard baseline points:
- Phase 1 total: 648 × 18 = 11,664 NIS
- Phase 2 total: 432 × 12 = 5,184 NIS
- Phase 3 total: 216 × 12 = 2,592 NIS
Combined total: approximately 19,440 NIS in direct tax savings — nearly 20,000 NIS that stays in your pocket over 42 months purely from the olim credit point schedule, on top of the standard points every Israeli resident receives.
How the Count Works
The 42-month count begins on the first day of the month in which you made aliyah. If you arrived mid-month, you still receive the full credit point benefit for that partial first month. The count does not reset if you leave Israel temporarily — it runs continuously from your aliyah date.
If you were not employed during part of the 42-month window, those months of credit points are not automatically "saved" — credit points only reduce tax owed, so if you had no income and no tax liability, there is nothing to reduce. However, unused points from prior years may be claimable through a retroactive annual return in some circumstances. Speak to an accountant about your specific situation.
Adding It All Together: Your Full Credit Point Picture
As a male oleh in your first 18 months, your total credit point entitlement includes your baseline Israeli points plus the extra olim points. As an example at 216 NIS per point:
- 2.25 base points (all residents): 486 NIS/month
- 3 olim bonus points: 648 NIS/month
- Total: 1,134 NIS/month off your tax bill
A female olah adds 0.5 additional points (108 NIS) for a total of approximately 1,242 NIS/month. These figures compound significantly if you also qualify for other credit points — for children, military service, or academic degrees.
What Comes Next
Knowing the schedule is one thing — making sure you actually receive the benefit is another. In the next article, we cover exactly how to claim your olim credit points: which forms to submit, what documents your employer needs, and how to recover points you may have missed.