As of 2026, each Israeli income-tax credit point (nekudat zikuy) is worth 242 ₪ per month — 2,904 ₪ per year (frozen through 2027): a resident man starts with 2.25 points and a woman with 2.75, plus points for children, aliyah and an academic degree. For example, a mother of children aged 2 and 8 gets 2.75 + 4.5 + 2 = 9.25 points — a tax reduction of 26,862 ₪ a year.
How is it calculated?
Start with the base points: a resident man gets 2.25, a woman 2.75. For children up to age 5 both parents receive identical points: 2.5 in the birth year, 4.5 per child aged 1-2, 3.5 at age 3 and 2.5 at ages 4-5. For children aged 6-17 the mother (or the custodial parent) gets 2 points and the father 1. A new immigrant (oleh chadash) is entitled to 1-3 points per year for 54 months, and anyone who completed a bachelor's degree in 2023 or later gets 1 point per year for up to 3 years. Multiply the total by 242 ₪ per month (2,904 ₪ per year).
Verified example: a mother of children aged 2 and 8 gets 2.75 + 4.5 + 2 = 9.25 points — 2,238.5 ₪ per month, 26,862 ₪ per year; the father gets 2.25 + 4.5 + 1 = 7.75 points — 22,506 ₪ per year. Note: for a new immigrant the calculator assumes the peak tier (3 points per year) — in practice the tier changes over the 54 months. Points can only offset tax you actually owe, and the result here is an estimate only.
Frequently asked questions
How much is a tax credit point worth in Israel in 2026?
One credit point is worth 242 ₪ per month — 2,904 ₪ per year, and the amount is frozen for 2025-2027. Points are deducted directly from the tax calculated on your salary; if your tax is lower than your points' value you simply pay no tax, but the difference is not refunded — unused points are lost.
How many credit points do parents get per child?
Up to age 5 both parents get identical points: 2.5 in the birth year, 4.5 at ages 1-2, 3.5 at age 3 and 2.5 at ages 4-5. At ages 6-17 the mother (or custodial parent) gets 2 points and the father 1. For example, for children aged 2 and 8 the mother gets 6.5 child points and the father 5.5.
What's new in 2026 — credit points for reserve duty (miluim)?
Starting in 2026, anyone who served 30 or more days of active reserve duty in a year is entitled to extra credit points, from 0.5 up to 4 points depending on the number of days served. Each point is worth 242 ₪ per month — 2,904 ₪ per year, like any other credit point.
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.
