Thousands of Israelis with medical disabilities pay income tax every year even though they may be legally entitled to a tax exemption. The article, published June 21, 2026, says the right exists in law but is often not claimed because people simply do not know about it.
It opens with the case of a woman who has lived with chronic pain for six years, after surgery, rehabilitation and medical committees, yet still paid full income tax at year-end because she did not know the exemption existed. The article says her case is common among people with permanent medical conditions who fail to use the benefit, not by choice but out of ignorance.
Eligibility depends not only on the level of medical disability but also on an income ceiling, which is updated every year. Those who earn above the threshold do not lose the exemption entirely, but receive it only on part of their income. After filing the form, the tax assessor reviews the request and may ask for additional documents. If approved, an exemption order is issued and passed to the employer, who then stops withholding income tax. If denied, the applicant may appeal.
A key point the article emphasizes is that the exemption is not automatic, even for people who previously received disability percentages from the National Insurance Institute. They must actively apply to the Tax Authority. The article also notes that medical committees can be a barrier, because some applicants cannot present their condition in the precise way the system requires, which can lead to lower disability ratings. It concludes that professional assistance from rights-expertise organizations can change the outcome and urges people with permanent medical conditions to check whether they qualify, or to check again with help if they were previously turned down.
