The 2026 Aliyah Tax Benefit, Explained
A temporary amendment created an exemption for specified Israeli earned income of qualifying new immigrants and veteran returning residents. It is valuable, but narrower and more uneven than a headline “₪1 million per year” suggests.
Known limits: The page explains published rules but does not decide eligibility or qualifying income.
Update policy: Material rule changes and corrections are logged on the version-history page.
Who falls inside the date window?
The law applies to a qualifying new immigrant or veteran returning resident who becomes an Israeli resident from November 5, 2025 through December 31, 2026. Status definitions and tax residence must both be checked.
How much income can be exempt?
| Year | Maximum qualifying amount |
|---|---|
| 2026 | ₪600,000, prorated for the residency period during 2026 |
| 2027 | ₪1,000,000 |
| 2028 | ₪1,000,000 |
| 2029 | ₪350,000 |
| 2030 | ₪150,000 |
What income is covered?
The benefit is aimed at qualifying earned income produced or accrued in Israel, including categories such as employment and business/professional income described in the law. It is not a general exemption for every kind of Israeli income.
Close relatives
For 2026–2029, qualifying income from a close relative or an entity controlled by a close relative is limited to ₪140,000, subject to the other conditions. Related-party structures deserve professional review.
2026 proration
If Israeli residency begins during 2026, the ₪600,000 cap is reduced according to the part of the year in which the person is an Israeli resident. The calculator uses calendar-day proration as a transparent estimate.
What the headline misses
- The cap changes every year.
- The exemption does not automatically eliminate National Insurance, health tax, payroll reporting, or pension obligations.
- Foreign-income reporting changed separately under Amendment 272 for people first becoming Israeli residents on or after January 1, 2026. The foreign tax exemptions and reporting obligations are not the same. See the reporting comparison.
- Anti-avoidance, related-party, residence, and cessation rules can materially affect eligibility.