Olim Tax Calculator (Israeli Income Tax with New-Immigrant Benefits)

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 roughly ₪242 per month against tax owed. As an Oleh you get bonus points on top: 3 in year 1, 2 in year 2, 1 in year 3. That is worth ~₪725, ~₪484, and ~₪242 monthly respectively — roughly ₪17,400 across the first three years for a single filer. The calculator applies these automatically when you select 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. It also does not require you to declare these on your Israeli tax return during this period (with some exceptions for very large positions).

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.