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Olim Tax Calculator (Israeli Income Tax with New-Immigrant Benefits)
Estimate your annual Israeli income tax with the Olim-specific credit point bonus and ten-year exemption framework.
The standard Israeli tax calculator is built for someone who has lived in Israel their whole life. As an Oleh you have a different tax picture for your first ten years here: bonus credit points that reduce your tax bill, an exemption on most foreign-source income, and special treatment of foreign retirement savings. This calculator handles the parts of that picture that apply to your Israeli salary income — for foreign assets and rental income, you will need a tax advisor who specializes in Olim.
Every Israeli resident gets 2.25 tax credit points (nekudot zikkui) by default, each worth ₪242 per month, or ₪2,904 per year, against tax owed. As an Oleh you get bonus points on top, and they are staged by month since Aliyah rather than by calendar year. If you became a resident on or after 1 January 2022 the ladder runs 1 extra point through months 1 to 12, then 3 through months 13 to 30, then 2 through months 31 to 42, then 1 through months 43 to 54. That is ₪242, ₪726, ₪484 and ₪242 a month respectively, and 8.5 points in total, about ₪24,684 across four and a half years. Anyone who arrived before 2022 is on the older ladder, worth 7.5 points over 42 months. The calculator applies the right one automatically from your year of Aliyah.
The 10-year foreign-source exemption is the bigger deal. For your first ten years as a new resident (or as a returning resident after ten years abroad), Israel does not tax income you earn from non-Israeli sources — foreign salary work, dividends from non-Israeli companies, rental income on properties abroad, capital gains on foreign-held investments. The reporting side changed, and the two are easy to confuse. The exemption from Israeli tax is intact, but the separate exemption from having to file was abolished for anyone who becomes an Israeli resident on or after 1 January 2026, who must now file an annual return and a capital declaration even where no tax is due.
What this calculator does NOT cover: self-employment income, bonus or 13th-month payments, foreign-source income (which is exempt anyway for most Olim), or capital gains. For payslip-line reconciliation see the Payslip Decoder.
Olim Tax Benefit Calculator
Estimate how much you save each year through olim credit points and the 10-year foreign income exemption. Adjust your details below to see your personalised results.
Your Aliyah Details
2022
January
Country of Origin
US citizens may owe US taxes even while exempt in Israel. Consult a CPA familiar with the US-Israel tax treaty.Income Details
Annual Israeli Salary (NIS)
₪50K₪500K
Annual Foreign Income (NIS equivalent)
₪0₪1M
Not modelled: the proposed 2026 oleh tax relief
A temporary provision (hora'at sha'ah) has been announced that would cut Israeli income tax for people who establish residency between 5 November 2025 and 31 December 2026. It is not yet law, and published descriptions of it differ on whether the relief is a rate ladder or an annual exempt-income ceiling. This calculator therefore does not apply it. Check the Israel Tax Authority for the enacted text before relying on any figure you see quoted for it.
Credit Point Savings
-
Credit point period endedForeign Income Exempt (6yr left)
₪100,000
2031 exemption endsEffective Tax Rate vs Standard
10.5%
No current benefit on salaryYear-by-Year Tax Savings Breakdown
Credit point savingsForeign income exemption value
How Olim Tax Benefits Work
Credit points reduce the income tax you owe directly. Every Israeli resident gets a base allocation of 2.25 credit points. On top of that, an oleh who became a resident on or after 1 January 2022 accrues 8.5 extra points over 54 months: 1 extra point through months 1–12, 3 through months 13–30, 2 through months 31–42, and 1 through months 43–54. Anyone who arrived before 2022 is on the older ladder, worth 7.5 points over 42 months. Each credit point is worth ₪242 per month, ₪2,904 per year (2026 rate, frozen from 2025).
Foreign income exemption lets new olim (and returning residents) keep all foreign-source income - rental, dividends, business income from abroad - completely free of Israeli tax for 10 years from the date of aliyah. You still need to report it, but no Israeli tax is due.
US citizens: the Israeli exemption does not eliminate US tax obligations. US citizens are taxed on worldwide income regardless of residency. Work with a dual-qualified CPA (US + Israel) to use the Foreign Tax Credit and FEIE effectively.
Disclaimer: This calculator is for educational purposes only and uses 2026 tax parameters. Tax law changes frequently. Always consult a licensed Israeli tax advisor (רו״ח) before making financial decisions.
שתפו:
Frequently asked questions
For your first ten years of Israeli residency, income from non-Israeli sources is generally exempt from Israeli income tax under section 14. The exemption covers foreign salary, dividends from foreign companies, rental income on foreign properties, capital gains on foreign-held investments, and pensions from foreign employers earned for foreign work. Returning residents who lived abroad for at least ten years (Toshav Hozer Vatik) get the same treatment. Reporting is a separate question: the old exemption from filing was abolished for anyone becoming a resident on or after 1 January 2026.
The clock starts on the day of your Aliyah (the date stamped on your teudat oleh), and it runs in months since Aliyah, not in calendar years. For anyone who became a resident on or after 1 January 2022 the stages are months 1 to 12 at 1 extra point, months 13 to 30 at 3, months 31 to 42 at 2, and months 43 to 54 at 1, which is 8.5 points across four and a half years. Arrivals before 2022 follow the earlier ladder: months 1 to 18 at 3 points, 19 to 30 at 2, and 31 to 42 at 1, worth 7.5 points in total.
Most salaried employees do not have to file because employers withhold tax at source. You DO have to file if (1) you have multiple employers, (2) you have self-employment income, (3) you have Israeli-source rental income, (4) your spouse and you both work and want to optimize joint filing, or (5) you want to claim deductions that were not applied at source. Olim sometimes need to file in year 1 to claim retroactive credit points if their Aliyah happened mid-year and their employer did not adjust withholding correctly.
A Toshav Hozer Vatik is a former Israeli who lived outside Israel for at least ten consecutive years and has now returned. They get the same 10-year foreign-income exemption as a new Oleh under section 14. They do not get the section 35 oleh credit points, which is a common and expensive misreading: the exemptions and the credit points are separate benefits with separate eligibility. This calculator therefore applies the credit-point ladder only to a new Oleh.
No. US citizens remain subject to US income tax regardless of where they live, with the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC) reducing double-taxation. This calculator only computes the Israeli side. For the US side and the interaction with Israeli tax, you need a CPA who handles US-Israel cross-border returns — this is specialized work and worth paying for.
Related reading
Tax credit points for Olim explained
How nekudot zikkui work, what Olim get, and how to claim them retroactively.
The 10-year foreign-income exemption
What income is exempt, what still needs reporting, and how to sequence asset sales.
When do Olim need to file an Israeli tax return?
Filing triggers, deadlines, and how to claim missed credits from prior years.
Related tools
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- Israel Tax Authority — Olim and returning residents guide — Israel Tax Authority gov.il ↗ ↩
- Income tax brackets — current year — Israel Tax Authority gov.il ↗ ↩
- Misrad HaKlita — financial benefits for Olim — Ministry of Aliyah and Integration gov.il ↗ ↩
- Bituach Leumi rates and ceilings — National Insurance Institute btl.gov.il ↗ ↩
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