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

Israel's Tax Authority has advanced the second payment of the 2025 Work Grant, also known as negative income tax, to approximately 130,000 eligible 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. The decision to expedite the payment was made to assist recipients during the High Holy Days.

The Work Grant is provided by the Tax Authority to employed individuals and self-employed persons who meet specific income and eligibility criteria. Payments are made directly to bank accounts, and applications are submitted online. Eligibility is individual, meaning both spouses can apply and receive grants if they qualify.

Eligibility for 2025 generally requires recipients to be 21 or older with children, or 55 or older without children, subject 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. Those with three or more children have a slightly higher income range, up to 8,020 shekels. Single parents with one or two children have a broader income range, from 1,510 to 13,660 shekels per month.

Additional conditions apply, such as not owning an investment property. The annual grant can reach up to 10,260 shekels, paid in four installments, meaning each payment could be up to approximately 2,565 shekels. 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.

The second payment was originally scheduled for October 15 but was moved up to September 9, with funds expected to reach accounts by the end of the following week. The Tax Authority also reported sending out approximately 240,000 mailings to potential grant recipients in the past month. Applications for the 2024 Work Grant remain open online until December 31, 2026. Additionally, employed women born after January 1, 1960, over 60, and meeting eligibility criteria can apply for an advance on their 2026 Work Grant.