Under the Israel Tax Authority's 2026 brackets, an employee with 180,000 ₪ annual gross income, 22,000 ₪ tax withheld and 2.25 credit points owes only about 18,860 ₪ — an estimated tax refund of about 3,100 ₪.
How is it calculated?
The calculator computes the tax due on your annual gross income using the Israel Tax Authority's 2026 brackets (including Amendment 288 of March 2026): 10% to 84,120 ₪, 14% to 120,720 ₪, 20% to 228,000 ₪, 31% to 301,200 ₪, 35% to 560,280 ₪ and 47% above. Credit points are then subtracted — each is worth 2,904 ₪ per year — and the result is compared with the tax actually withheld per your Form 106 (Tofes 106). If more was withheld than is due, the difference is the refund.
In the example: on 180,000 ₪ annual gross, tax before credits is about 25,400 ₪; 2.25 credit points (6,534 ₪) bring the tax due down to about 18,860 ₪. Since 22,000 ₪ was withheld, the difference is an estimated refund of about 3,100 ₪. Common refund causes: working only part of the year, changing jobs, unused credit points (degree, children, new immigrant status) and donations. Refunds can be claimed up to 6 years back.
Frequently asked questions
How do I know if I'm owed a tax refund in Israel?
Compare the tax withheld on your Form 106 with the tax due under the 2026 brackets, after subtracting credit points worth 2,904 ₪ each. If more was withheld, the difference is a refund. In the example: 22,000 ₪ withheld versus about 18,860 ₪ due means a refund of about 3,100 ₪.
How many years back can I claim a tax refund in Israel?
Refund claims can go up to 6 years back, so in 2026 you can claim for tax year 2020 onward. Claims are filed with the Israel Tax Authority based on the Form 106 of each year.
How much is a tax credit point worth in 2026?
One credit point is worth 2,904 ₪ per year in 2026. A male Israeli resident gets 2.25 points and a female resident 2.75, with extra points granted for children, an academic degree and new-immigrant status, among others.
This calculation is a general estimate for illustration only. It does not constitute tax, pension, or investment advice, nor a substitute for personal advice from a licensed professional, and should not be relied on for decisions.
