Israel Pays Over $10 Billion in War Damages Since October 7

Since the Hamas attacks on October 7, 2023, and the subsequent outbreak of the "Swords of Iron" war, Israel's Tax Authority has processed approximately 1.18 million claims for direct and indirect damages. Over 38.6 billion shekels (approximately $10.3 billion USD) have been disbursed as compensation to citizens and businesses affected by the conflict and related military operations, including "Swords of Iron," "With the Lions," and "Roaring Lion."

Under Israeli law, the state is obligated to compensate residents for direct and indirect damages resulting from acts of hostility or war. The Tax Authority's Property Tax and Compensation Fund has been handling these claims, categorizing them into direct damages (physical damage to structures, vehicles, and property) and indirect damages (economic losses for businesses).

For direct damages, around 168,000 claims have been filed, with approximately 8.3 billion shekels paid out. This includes compensation for lost rental income and temporary housing provided to evacuees. Indirect damage claims, primarily for businesses experiencing financial losses due to the security situation, number close to one million, with about 30 billion shekels disbursed. These indirect payments were distributed through national, "green" (for severely affected areas/sectors), and "red" (for Gaza border communities) tracks.

The "Swords of Iron" war, the longest of the operations, accounted for the largest portion of compensation, totaling approximately 25.7 billion shekels from about 683,500 claims. "With the Lions," which lasted two weeks, saw nearly 7 billion shekels paid out, mostly for direct damages. "Roaring Lion" compensation stands at about 6 billion shekels.

While most compensation tracks have closed, some remain open, particularly for northern communities affected by "Roaring Lion." The Tax Authority recently sought to reclaim approximately 238.4 million shekels from 3,751 business owners in the north who had received compensation or advances. The total financial cost of the recent conflicts is still being finalized as some claims are still under review or appeal.