Tax Authority Advances Work Grant Payments Ahead of Jewish New Year

The Israel Tax Authority will expedite the second payment of the 2025 Work Grant, also known as negative income tax, to approximately 130,000 Israelis. The funds, totaling over 260 million shekels, will be deposited into recipients' bank accounts on Wednesday, September 9, 2026, just before the Rosh Hashanah holiday. This decision was made to assist eligible individuals during the holiday period.

The Work Grant is provided to employed individuals and self-employed persons who meet specific income and eligibility criteria. Eligibility is individual, meaning both partners in a couple can apply and receive grants if they qualify. Generally, applicants must be 21 or older and parents, or 55 or older without children, while adhering to income thresholds. For example, a parent with one or two children may qualify if their monthly income is between 2,450 and 7,289 shekels, with higher thresholds for those with three or more children. Single parents may have a broader income range. Additional conditions apply, such as not owning an investment property.

The annual Work Grant can reach up to 10,260 shekels, paid in four installments, averaging about 2,565 shekels per payment. The exact amount received in this upcoming payment will depend on individual eligibility. Since 2024, an additional "toddler supplement" of up to 500 shekels per month per child under three is available, capped at 6,000 shekels annually, and is included in the main Work Grant application.

Originally scheduled for October 15, the second 2025 Work Grant payment is now set for September 9, with funds expected to arrive in bank accounts by the end of next week. The Tax Authority recently sent out approximately 240,000 informational mailings to potential beneficiaries. Additionally, employed women born after January 1, 1960, over 60, and meeting eligibility criteria can apply for an advance on their 2026 Work Grant. Applications for the 2024 Work Grant can still be submitted online until December 31, 2026.