Tax Credit Points — Your Full Entitlements

What are tax credit points, their value, who gets extra points (children, degree, immigrants), and benefit calculation.

Tax credit points (Nekudot Zikuy) are the Israeli tax system's way of giving every resident a basic tax-free allowance. Each credit point reduces your annual income tax by a fixed shekel amount, and many Israelis are entitled to more points than they realize.

How Tax Credit Points Work

Every credit point is worth a specific amount per year, updated annually by the Tax Authority. The credit is applied against your calculated income tax — if your total credits exceed your tax liability, your effective tax rate drops to zero. Credit points are not refundable, meaning they can reduce your tax to zero but will not generate a cash payment on their own.

Who Gets What?

Every Israeli resident receives 2.25 base points. Women receive an additional 0.5 points. New immigrants (Olim Chadashim) receive 3 extra points in their first 18 months, 2 points for the next 12 months, and 1 point for the following 12 months. Parents of children under age 19 receive additional points. Completing an academic degree grants 1 point for one year. Residents of qualifying development towns and peripheral areas receive 0.5 to 2 extra points.

How to Claim Your Points

You claim credit points through Form 101 when starting a job, or by updating it when your circumstances change. For points related to new immigration status, you need your Oleh Chadash certificate. For a degree, bring your diploma. For children, their birth certificates or ID numbers are needed.

Maximizing Your Credit Points

Review your Form 101 annually. Life changes like having a baby, getting married, finishing a degree, or moving to a qualifying area all trigger additional points. Missing even one credit point means paying hundreds of extra shekels in tax each year.

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The information on this page is for educational purposes. Please consult a professional before making financial decisions.

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Frequently asked

+−How many tax credit points do new immigrants get?

New immigrants (Olim Chadashim) receive 3 extra points in their first 18 months, 2 points for the next 12 months, and 1 point for the following 12 months, on top of the standard resident points.

+−How much is each tax credit point worth?

Each credit point is worth a fixed shekel amount per year, updated annually by the Tax Authority. The value is applied against your calculated income tax to reduce your bill.

+−Can credit points give me a cash refund?

No, credit points can reduce your tax to zero but are not refundable — they will not generate a cash payment on their own. However, if excess tax was withheld from your salary, you can claim that difference back as a refund.

+−Do credit points apply to National Insurance and health tax?

No, tax credit points only reduce your income tax liability. National Insurance (Bituach Leumi) and health tax are calculated separately and are not affected by credit points.

+−How do credit points work for new immigrants (Olim)?

Olim Chadashim receive additional credit points for 42 months after making Aliyah: 3 extra points for 18 months, then 2 points for 12 months, then 1 point for 12 months. These significantly reduce your tax burden in the first years.

+−Do both spouses get credit points for children?

Yes, both parents receive credit points for children, though the amounts may differ. The specific allocation depends on the child's age and the parents' circumstances. Check the current Tax Authority guidelines for exact values.

+−Can I claim credit points for a degree earned abroad?

Yes, if the degree is recognized by the Israeli Council for Higher Education. You receive credit points for a limited number of years after completing the degree. Submit proof of recognition to your employer.