Israeli Tax Credit Points Explained
A tax credit point reduces calculated Israeli income tax. In 2026 one point is worth ₪242 per month, or ₪2,904 for a full year.
Known limits: The exact points available depend on personal status and the relevant tax year.
Update policy: Material rule changes and corrections are logged on the version-history page.
Credit points reduce income tax only. They do not reduce National Insurance, health tax or pension deductions.
How the calculation works
Payroll first calculates income tax from the progressive brackets, then subtracts the value of the credit points you can use. Tax cannot fall below zero, so unused points generally do not create a cash payment.
Income tax after credits = bracket tax − (credit points × ₪242)
Common reasons totals differ
Resident status, sex, children, single-parent status, disability, education, military service, aliyah date and other facts may create additional points. Eligibility and timing can be more complicated than a simple total.
Official check: Israel Tax Authority credit-point estimator.