Income Tax Exemption for People with Disabilities and the Blind (Section 9(5)): who qualifies and how much
In short
- Blind people and those with a disability of at least 90% are exempt from income tax on earned income, up to a cap (section 9(5) of the Income Tax Ordinance).
- The cap for 2024–2027: ₪445,200 a year. For IDF disabled veterans and victims of hostilities with 100% disability: ₪684,000.
- At least one impairment must be 40% or more, and the disability must be set for at least 365 days. For shorter periods the exemption is smaller.
- If the exemption was not applied to your salary, you can reclaim tax up to 6 years back.
Who qualifies
- Blind people.
- People with a disability of at least 90%, even if it combines several impairments, provided one of them is at least 40%.
- The percentage comes from a decision under the National Insurance Law (general or work disability) or other laws, such as the Disabled Persons (IDF) Law. Without such a decision, a medical committee under the income tax regulations sets it.
How much is exempt
| Situation | Exempt income per year |
|---|---|
| Disability of 90% or more, or blindness, for 365 days or more | ₪445,200 |
| IDF disabled or victims of hostilities with 100% disability, for 365 days or more | ₪684,000 |
| Disability for 185 to 364 days | ₪81,960 |
| Unearned income, when earned income is below ₪81,960 or none | up to ₪81,960 in total |
| Interest on compensation or insurance money received for bodily injury | up to ₪337,200 |
If the disability covers only part of the year, the exemption is proportional to the number of days.
How to get it
- Get confirmation of your disability percentage and period from Bituach Leumi or the body that set it.
- Submit a request for a section 9(5) exemption to your assessing officer, with the confirmation.
- Give the exemption approval to your employer so tax is not deducted from your pay.
- For past years when tax was deducted, claim a refund, up to 6 years back.
Good to know
- The exemption covers income tax only, not national insurance and health contributions.
- If your disability percentage is temporary, eligibility is reviewed when the period ends.
Frequently asked questions
I have 75% disability. Do I get the exemption?
Not under section 9(5), which requires 90%. But check other rights, such as credit points or a refund for a part-year of work.
My disability was set retroactively. Can I get the exemption for past years?
Yes, for the years the disability covers. Claim a tax refund for each year, up to 6 years back.
Calculators for this topic
Tax refund calculator
From Form 106: how much tax you should have paid and the refund you may be owed for each year.
Disability percentage calculator
Combines impairments like a medical committee and checks the thresholds for disability benefits and tax relief.
Worth checking too
Tax Refund for Employees
A refund of tax over-deducted from your salary. You can claim up to 6 years back, yourself and with no fee.
Preparing for a medical committee
What to prepare, what happens in the room, expense refunds and appeal deadlines. Most health-related benefits go through the committee.
Rights of cancer patients
Fast-tracked disability pension, special services during chemotherapy, tax relief and insurance — from diagnosis to recovery.
General Disability Allowance
A monthly allowance for people whose earning capacity fell by at least 50% because of illness, injury or a birth defect. Up to ₪4,711 a month.
Tax Credit Points
Each credit point cuts your income tax by ₪242 a month. Children, aliyah, army service, a degree — and missed points can be reclaimed for past years.
Sources
This is general information, not legal advice. Amounts are correct as of the review date and change every January.