Israel's Tax Authority Advances Holiday Payments to 130,000 Citizens

The Israel Tax Authority has disbursed a second installment of the "working premium" (negative income tax) for 2025 to approximately 130,000 citizens. The payments, totaling over 260 million shekels, began arriving in bank accounts on September 9, 2026, ahead of the Tishrei holidays. This early disbursement aims to assist families with holiday preparations, according to the authority.

The working premium is available to employed individuals and self-employed persons who meet specific income criteria. Eligibility is individual, meaning both spouses can receive payments if they qualify. Generally, recipients must be over 21 with children, or over 55 without children. Income thresholds vary based on the number of children, ranging from 2,450 to 8,020 shekels monthly for parents with one to three or more children, respectively. Single parents have broader income limits, from 1,510 to 13,660 shekels per month. A key condition is that neither the recipient nor their spouse can own a second property for investment purposes.

The maximum annual working premium for 2025 can reach 10,260 shekels, with each of the four installments capped at approximately 2,565 shekels, though the final amount depends on individual calculations. Since 2024, an automatic child supplement of up to 500 shekels per month per child under three years old is also provided. This payment stage was originally scheduled for October 15 but was moved up to September 9. The authority also sent out around 240,000 notifications to potential recipients last month.

Separately, employed women over 60 (born after January 1, 1960) can now apply for an advance payment for 2026. Applications for the 2024 working premium are accepted until December 31, 2026.