Tax Authority Advances Work Grant Payments Ahead of Jewish Holidays

The Israel Tax Authority has decided to expedite the second payment of the 2025 Work Grant, also known as negative income tax, to be deposited into recipients' bank accounts on Wednesday, September 9, 2026. The total disbursement is expected to exceed 260 million shekels. This accelerated payment schedule was implemented to allow eligible individuals to utilize the funds during the upcoming Jewish holidays.

The Work Grant is provided by the Tax Authority to employees and self-employed individuals who meet specific eligibility criteria and income thresholds defined by law. Applications can be submitted electronically via the Tax Authority's website, and the grant is paid directly into the recipient's bank account. Eligibility is individual, meaning both spouses can apply and receive the grant if they individually qualify.

According to the 2025 guidelines, basic eligibility applies to employees and self-employed individuals aged 21 and over with children, as well as those aged 55 and over, regardless of whether they have children, provided they meet income requirements. For example, a 21-year-old with one or two children might qualify if their monthly income is between approximately 2,450 and 7,289 shekels. Those with three or more children have a slightly higher income range, between 2,450 and 8,020 shekels. Single parents aged 21 or older with one or two children may also qualify, with a broader income range of 1,510 to 13,660 shekels monthly.

Additional conditions apply, including that the applicant or their spouse must not own an investment property. The annual Work Grant can reach up to 10,260 shekels, paid in four installments. The maximum amount per installment is approximately 2,565 shekels, though the actual amount received by each individual in the upcoming payment will depend on their personal eligibility and approved grant value.