The questions every future oleh ends up googling at 1am — answered in a paragraph each, with links to the tools that put numbers on them.
Yes — enacted March 2026 within Israel's budget law. Israeli earned income up to ₪1M/year is exempt for qualifying olim and veteran returning residents arriving November 5, 2025 – December 31, 2026. Details and fine print: the law explained.
Generally not for the first 10 years — the classic exemption covers foreign-source income and capital gains. What changed in 2026: new arrivals must report foreign income and assets even though it stays exempt. If that reporting matters to you, read the timing guide.
Foreign-income exemption: 10 years from residency. The new Israeli earned-income exemption: through the program years to 2030, full-strength early and tapering toward the end.
No — it covers income from personal effort produced in Israel (salary, active business). Rent, dividends and capital gains fall outside it, though foreign passive income is often exempt under the 10-year rule anyway.
Only the excess is taxed. A ₪1.2M earner pays tax on ~₪200K at normal progressive rates. See your own number in the calculator.
Yes — income paid by a close relative caps the exemption at ₪140,000/year instead of ₪1M. If your aliyah plan includes working in the family firm, this is the clause to price in.
Yes — additional nekudot zikuy in the first years on top of the standard 2.25, reducing tax directly. The schedule depends on your arrival date; add them in the salary calculator to see the effect.
Work-in-Israel profiles usually win with the 2026 window; foreign-income profiles should weigh the loss of the reporting exemption. The timing tool walks through it.
Answers simplify a temporary law with eligibility conditions. Not advice; verify current rules with the Israel Tax Authority or a licensed professional.