New temporary regulations give significant benefits to those who have recently made Aliya. According to the latest update, Olim and Toshavim Chozrim (who became Israeli residents between November 5, 2025, and the end of 2026) are now eligible for tax exemptions on business and salary income received in Israel.
Annual Exemption:
The following table outlines the maximum annual income (in NIS) eligible for the tax exemption:
| Tax Year | Annual Exemption (NIS) |
| 2026 | ₪600,000 |
| 2027–2028 | ₪1,000,000 |
| 2029 | ₪350,000 |
| 2030 | ₪150,000 |
Important: New Reporting Requirements
Starting in 2026, a new mandatory reporting requirement applies to all foreign-sourced income.
All income must be reported regardless to the tax exemptions. As the law includes various conditions and limitations, we highly recommend evaluating each case individually.
Do you need assistance with filing your Israeli taxes?
Our firm specializes in exemptions and reporting requirements for Olim and Toshavim Chozrim. Contact us today for professional consultation.