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 4.5 years. The schedule is graduated and, under the 2022 reform, back-loaded: it starts modest, peaks in your second and third years, then tapers off.
How does the olim credit point schedule work?
For anyone who made aliyah on or after 1 January 2022, the olim credit point schedule runs for 54 months from your aliyah date and is divided into four phases:
- Months 1–12: 1 extra credit point per month
- Months 13–30: 3 extra credit points per month (peak)
- Months 31–42: 2 extra credit points per month
- Months 43–54: 1 extra credit point per month
This back-loaded structure replaced the older front-loaded schedule. Olim who arrived before 1 January 2022 are on a 42-month schedule instead: 3 extra points a month for the first 18 months, 2 for the next 12, and 1 for the 12 after that. Confirm your exact dates with an accountant.
Each credit point is worth approximately 242 NIS per month in 2026 (about 2,904 NIS per year; the value is updated annually by the Israel Tax Authority). Using this figure:
- Months 1–12: 1 × 242 = 242 NIS/month off your tax bill
- Months 13–30: 3 × 242 = 726 NIS/month off your tax bill
- Months 31–42: 2 × 242 = 484 NIS/month off your tax bill
- Months 43–54: 1 × 242 = 242 NIS/month off your tax bill
How much do olim credit points save you over 54 months?
Adding up all four phases gives you the total tax reduction you receive as an oleh during your first 4.5 years, before accounting for your standard baseline points:
- Phase 1 total: 242 × 12 = 2,904 NIS
- Phase 2 total: 726 × 18 = 13,068 NIS
- Phase 3 total: 484 × 12 = 5,808 NIS
- Phase 4 total: 242 × 12 = 2,904 NIS
Combined total: approximately 24,684 NIS in direct tax savings - roughly 25,000 NIS that stays in your pocket over 54 months purely from the olim credit point schedule, on top of the standard points every Israeli resident receives.
When does the 54-month count start?
The 54-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. Leaving Israel does not simply forfeit the balance: the Tax Authority allows an oleh who was out of Israel for at least 6 months but no more than 3 years to ask that the absence be excluded from the 42- or 54-month count, though the entitlement cannot be dragged beyond that absence. Olim who leave during the benefit period for regular military service, national service, or post-secondary studies may similarly ask that the service or study period be excluded from the count.
If you were not employed during part of the 54-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
During the peak months 13-30, your total credit point entitlement includes your baseline Israeli points plus the 3 extra olim points. As an example for a male oleh at 242 NIS per point:
- 2.25 base points (every Israeli resident): 544.5 NIS/month
- 3 olim bonus points: 726 NIS/month
- Total: approximately 1,271 NIS/month off your tax bill
A woman resident in Israel receives an extra half point, for 2.75 base points and 665.5 NIS/month, which brings the peak-phase total to roughly 1,392 NIS/month. These figures compound significantly if you also qualify for other credit points - for children, military service, or academic degrees.
Olim who made aliyah on or after 1 January 2022 receive extra income tax credit points on a back-loaded 54-month schedule: 1 point per month in months 1-12, 3 points per month in months 13-30 (the peak), 2 points per month in months 31-42, and 1 point per month in months 43-54. In 2026 each point is worth about 242 NIS per month, so the total benefit comes to roughly 25,000 NIS spread across 4.5 years.
For anyone who made aliyah on or after 1 January 2022 it runs for 54 months (4.5 years) from your aliyah date. Olim who arrived before 1 January 2022 are on a 42-month schedule instead: 3 extra points a month for 18 months, then 2 for 12 months, then 1 for 12 months.
Approximately 242 NIS per month, or about 2,904 NIS per year. The Israel Tax Authority updates this value annually, so confirm the figure for your tax year.
The schedule is back-loaded. The peak is months 13 to 30, when you receive 3 extra points per month (about 726 NIS per month at the 2026 value). Months 1-12 and months 43-54 give 1 point per month, and months 31-42 give 2 points per month.
It starts on the first day of the month in which you made aliyah, regardless of when you start working. Credit points only reduce tax you actually owe, so months with no taxable income produce no immediate benefit. If you leave Israel for at least 6 months and no more than 3 years, you can ask the Tax Authority to exclude that absence from the count.
At the 2026 point value of about 242 NIS per month, the four phases add up to roughly 24,684 NIS, or about 25,000 NIS, on top of the standard credit points every Israeli resident receives.
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.