Do not mix the two benefits
New-Oleh Salary Tax Benefits
New olim may encounter two separate salary-related benefits: the established 4.5-year credit-point schedule and the temporary earned-income exemption for qualifying arrivals beginning in 2026.
Guide informationMethodology · Version history
Version2026.07.2
Last checkedJuly 16, 2026
Information typeRegulated guide
Source basisTax Authority and published new-oleh rules
Known limits: Payroll timing, residency facts and individual eligibility can change the result.
Update policy: Material rule changes and corrections are logged on the version-history page.
Additional credit points1 point for 12 months, 3 points for 18 months, 2 points for 12 months, then 1 point for 12 months.Temporary 2026 benefitA separate exemption with enacted year-by-year caps and detailed eligibility rules.
Why they should be modeled separately
Credit points reduce the income tax remaining after the brackets are applied. The temporary benefit can remove qualifying Israeli earned income from the taxable base before ordinary tax is calculated. Eligibility, proration and related-party rules require separate review.
Do not assume every new oleh qualifies for the temporary benefit. Arrival date, qualifying income, employer relationships and statutory definitions matter.