Tax Credit Points in Israel (2026): who gets them and how not to miss out
In short
- A credit point (נקודת זיכוי) reduces income tax by ₪2,904 a year, or ₪242 a month (2024–2027).
- Every resident gets 2.25 points, and women get another half point.
- Extra points come with children, aliyah, regular army service, an academic degree or professional diploma, a child with a disability and more.
- Your employer gives points only according to Form 101. Missed points are reclaimed through a tax refund, up to 6 years back.
Basic points
- Israeli resident: 2 points plus a quarter point, 2.25 in total.
- Women: another half point.
Children
Points depend on the age the child reaches in the tax year:
| Child's age in the tax year | Mother | Father |
|---|---|---|
| Year of birth | 2.5 | 2.5 |
| 1–2 | 4.5 | 4.5 |
| 3 | 3.5 | 3.5 |
| 4–5 | 2.5 | 2.5 |
| 6–17 | 2 | 1 |
| 18 | 0.5 | — |
A mother can move one point from the birth year to the following year. Single parents get extra points.
New immigrants
- Arrived from 2022: in the first year, 1 point. The next 18 months, 3 points a year. The year after, 2 points. The last year, 1 point. 54 months in total.
- Arrived before 2022: the first 18 months, 3 points a year. The year after, 2 points. The last year, 1 point.
Discharged soldiers and reservists
- For 36 months after regular service ends: 2 points a year if you served at least 23 months (men) or 22 months (women). Shorter service gives 1 point a year.
- Combat reservists get points based on the number of combat reserve days in the previous year, up to 4 points.
Studies
- First degree: 1 point a year, for up to 3 years according to years of study, from the year after you finish.
- Second degree: half a point a year, for up to 2 years.
- Recognised professional diploma (at least 1,700 study hours): 1 point a year, for up to 3 years.
- You get the points only after you submit confirmation of eligibility for the degree or diploma.
A child with a disability
A parent of a child who is paralysed, blind or has an intellectual-developmental disability gets 2 credit points for each such child, unless they received another tax credit for that child.
How to get them
- Fill in Form 101 with your employer at the start of each year or job, and attach certificates: immigrant certificate, discharge certificate, degree confirmation.
- If you work for several employers, you get the points at one of them.
- Points not applied in your salary are reclaimed through a tax refund, up to 6 years back.
Frequently asked questions
I don't pay income tax. Do credit points help me?
No. A credit point reduces tax you pay and is not paid out in cash beyond that.
How do I know how many points I got?
The number of credit points appears on your payslip. If it is lower than you are entitled to, update Form 101 and claim a refund for previous years.
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.
Tax credit points calculator
How many tax credit points you have in a tax year and what they are worth in shekels.
Maternity allowance calculator
The daily amount and the total for your leave, from your wage, work record and number of babies.
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.
Disabled Child Benefit
For parents of a child with an illness, impairment or dependence on others, from 91 days to 18. ₪1,943–₪9,126 a month, up to a year back.
Disability Tax Exemption (9(5))
People with a disability of 90% or more, or who are blind, pay no income tax on earnings up to ₪445,200 a year.
Maternity allowance
15 or 8 weeks depending on your work record, based on your wage up to ₪1,752.33 a day. Fathers can take part of it.
Sources
This is general information, not legal advice. Amounts are correct as of the review date and change every January.