Israel Tax Authority Advances NIS 260 Million Work Grant Payout
The Israel Tax Authority will distribute the second installment of the 2025 work grant on September 9, 2026, benefiting 130,000 citizens ahead of the High Holy Days.
The Israel Tax Authority has announced it will advance the second installment of the 2025 work grant (negative income tax). Approximately 130,000 eligible Israelis will receive the funds directly into their bank accounts on Wednesday, September 9, 2026, ahead of the original October 15 schedule.
The total payout for this phase is expected to exceed NIS 260 million. According to the Tax Authority, the decision to expedite the payment was made to assist eligible citizens with expenses during the upcoming High Holy Days.
Eligibility Criteria and Income Thresholds
The work grant is paid directly to salaried employees and self-employed individuals who meet the income brackets defined by law. Applications are submitted online via the Tax Authority's website. Eligibility is individual, meaning both working spouses can apply and receive grants if they meet the criteria.
According to the 2025 guidelines, basic eligibility applies to working parents aged 21 and older, as well as individuals aged 55 and older without children:
-
Parents of one or two children (aged 21+) are eligible with a monthly income between NIS 2,450 and NIS 7,289.
-
Parents of three or more children qualify with a monthly income between NIS 2,450 and NIS 8,020.
-
Single parents with one or two children benefit from a wider income bracket, ranging from NIS 1,510 to NIS 13,660 per month.
An additional condition stipulates that applicants or their spouses must not own an investment property.
Grant Amounts and Toddler Benefits
The maximum annual work grant for 2025 can reach up to NIS 10,260. Distributed in four installments, the maximum payout per phase is NIS 2,565, though the exact amount is calculated individually.
Since 2024, an additional "toddler grant" of up to NIS 500 per month (up to NIS 6,000 annually per child) is available for parents of children under the age of 3. This benefit is integrated into the main application process.
The Tax Authority recently mailed approximately 240,000 notifications to citizens who may be eligible, urging them to check their eligibility online. Furthermore, eligible working women born after January 1, 1960, who are over 60, can apply for an advance on their 2026 work grant. Applications for the 2024 work grant remain open until December 31, 2026.
