Most salaried olim never file a tax return in Israel, because tax is withheld at source. You do need to file Form 1301 if you are self-employed, own a company, have certain types of income or simply want a refund you are owed. Olim benefits, foreign income and residency forms all run through the same return.
The short answer: if you came to Israel and took a salaried job, you probably do not have to file an annual return. Your employer withholds income tax and National Insurance, and that is usually the end of it. Form 1301, the full annual return for individuals, becomes your business once you are self-employed, own a company, have income that is not taxed at source, or are owed a refund you want back.
For many olim the first year is when the questions start: a freelance side project, a rental apartment back home, savings abroad. This guide explains who files, how your oleh status shows up on the return and what gets attached.
Form 1301 is your annual report of income for a tax year, which in Israel is the calendar year. It pulls together everything: salary, business income, rent, capital gains and foreign income, plus your credits and deductions and the tax already withheld or paid in advance. After the return is processed, the Tax Authority issues an assessment. If you overpaid, the refund goes to the bank account on the return. If you owe, pay by the date on the notice to avoid interest and linkage charges.
According to the Israel Tax Authority, the people who file an annual return include:
If you opened a business after making aliyah, you file Form 1301 every year, starting with your first year of activity. Our guide to taxes for the self-employed in Israel explains what you pay along the way.
Not everyone who deals with the Tax Authority fills out the full return. Form 135 is a shorter annual return meant for simpler cases, typically an employee who is not required to file but wants a refund, for example after changing jobs mid-year or starting work partway through the year, which is common in an oleh's first year. Self-employed people and company owners file the full Form 1301 with the relevant schedules.
Every Israeli resident gets 2.25 credit points. Olim who arrived in 2022 or later get extra points on top of that for 54 months:
In 2026 one credit point is worth ILS 2,904 a year, or ILS 242 a month, off the tax you owe. The 54 months start when your teudat oleh is issued, and time spent in regular IDF service or post-secondary studies does not count toward them. Olim who arrived before 2022 are on an older 42-month schedule.
The Encouragement of Aliyah and Return to Israel Law (Temporary Provision), 2026 adds a separate benefit for olim and veteran returning residents who became Israeli residents between November 5, 2025 and December 31, 2026. Their Israeli earned income, from work or a pension, is exempt from income tax in 2026 through 2030, up to a yearly cap:
Lower caps of ILS 140,000 or ILS 150,000 apply when the income comes only from relatives. Eligibility turns on the date you became a resident, so confirm yours before you count on the exemption.
Alongside the schedules, attach the certificates behind your credits and deductions: donation receipts, pension and study fund deposit statements, and the like.
Most people file through the Tax Authority's online reporting system, reached from your personal area on the Tax Authority website. You fill in the return online, upload the attachments as files, and keep the confirmation of filing. A CPA or tax advisor who represents you files through the representatives' system instead. Paper filing is allowed only for specific groups, mainly people above retirement age, people with low income, or people not required to file who are claiming a refund. If you are self-employed or own a company, assume you file online.
The return for a tax year is filed during the following year. For tax year 2025, the deadline was May 31, 2026 for people who are not required to file online, and June 30, 2026 for people who are. If a CPA or tax advisor represents you, a later schedule applies. Under the Tax Authority's extension arrangement for tax year 2025, representatives file their individual clients' returns in stages:
These are quotas for the representative, not personal deadlines. Your own return is due whenever your CPA files it within that schedule, so the actual date could be well before February 2027. In practice, working with a CPA can push your deadline far past June 2026, but don't count on the last date. Ask your representative when they plan to file yours. If a deadline has already passed, file as soon as you can.
If you would like your return handled in English, see our English-speaking accountant service or call +972-52-448-5784 to book a consultation call. We handle Israeli tax and accounting only. We are not a US CPA firm.
Usually not, since your employer withholds tax. You may still need to file because of other income, such as rent or foreign income, and you can file to claim a refund if too much tax was withheld.
Form 1301 is the full annual return. Form 135 is a shorter return meant for simpler situations, such as an employee who is not required to file but wants a refund.
It depends on when you became a resident. Olim get a ten-year exemption on most foreign income. If you became an Israeli resident on or after January 1, 2026, you must still report that income on your return, even though it is exempt. If you arrived before 2026, you keep the old exemption from reporting.
For tax year 2025, the deadline was May 31, 2026 for people not required to file online, and June 30, 2026 for those who are. If a CPA or tax advisor represents you, the extension arrangement for tax year 2025 lets them file in stages through February 28, 2027. Your own date depends on when your representative files your return, so don't count on the last date.
Olim who arrived in 2022 or later get extra credit points for 54 months on top of the 2.25 points every resident gets: 1/12 of a point a month for the first 12 months, 1/4 for the next 18, 1/6 for the next 12 and 1/12 for the last 12. In 2026 one credit point is worth ILS 2,904 a year, or ILS 242 a month.
Only certain people may file on paper, mainly those above retirement age, people with low income, or people not required to file who are claiming a refund. Self-employed people and company owners should assume they must file online.