Israel's Tax Authority Advances Work Grant Payments Ahead of High Holidays

The Israel Tax Authority has announced an early disbursement of the second installment of the Work Grant (Negative Income Tax) for the 2025 eligibility year. The payment, originally scheduled for mid-October, will now be deposited into eligible recipients' bank accounts on Wednesday, September 9, 2026. This acceleration aims to provide financial relief to hundreds of thousands of families and workers in anticipation of increased expenses during the upcoming High Holidays.

The Work Grant is a government financial aid program designed to improve the economic situation of low- and middle-income salaried and self-employed individuals, reduce social disparities, and incentivize labor market participation. For 2025, the maximum grant amount can reach approximately NIS 10,260, with an average payment per installment of around NIS 2,000. The upcoming disbursement will distribute over NIS 260 million to approximately 130,000 eligible individuals.

Eligibility for the 2025 grant requires recipients to be at least 21 years old with children (under 19), or 55 years or older, subject to income criteria. A key condition is not owning more than a single residential apartment, with ownership of an additional property exceeding 50% disqualifying applicants. Average monthly income thresholds vary based on the number of children and single-parent status, ranging from NIS 1,510 to NIS 13,660.

Additional benefits include a monthly supplement of up to NIS 500 per toddler under age three, and a provision allowing working women aged 60 and over to request an advance on their 2026 work grant. The Tax Authority emphasizes that many eligible individuals do not claim the grant, losing out on significant funds. The application process is free and can be completed online via the Tax Authority's website by verifying identity, confirming personal details, and providing bank account information.

Applications for the 2025 grant are open online until the end of 2027, and applications for the 2024 grant can still be submitted until December 31, 2026.