Israel Tax Authority Advances Second 2025 Work Grant Payout to September 9
The Israel Tax Authority will disburse the second work grant installment for 2025 on September 9, 2026, transferring over 260 million shekels to 130,000 eligible low- and middle-income workers ahead of the holidays.
The Tax Authority has announced the early disbursement of the second installment of the work grant for the 2025 tax year, which will be transferred directly to eligible bank accounts on Wednesday, September 9, 2026. Originally scheduled for mid-October, the payment has been brought forward to support hundreds of thousands of families and workers with financial resources ahead of the upcoming Tishri holiday expenses.
What Is the Work Grant?
The work grant, commonly known as negative income tax, is targeted financial assistance paid directly by the state to low- and middle-income salaried and self-employed workers. The grant aims to improve workers' financial standing, reduce social disparities, and incentivize labor market participation.
Key figures for the 2025 tax year include:
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Maximum grant amount: Up to approximately 10,260 shekels (before special additions).
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Average amount per installment: Approximately 2,000 shekels per eligible recipient.
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Total distribution for the upcoming installment: Over 260 million shekels for approximately 130,000 eligible recipients.
Eligibility Criteria and Income Thresholds
To qualify for the grant for the 2025 tax year, applicants must meet specific age and asset criteria:
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Age 21 and older: Applicable if you have children up to age 19.
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Age 55 and older: Eligibility exists even without children, subject to an income test.
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Real estate asset test: Eligibility is conditional on not owning (either solely or with a spouse) more than a single residential apartment. Owning an additional property exceeding a 50% share disqualifies the applicant.
The average monthly income thresholds for eligibility are calculated based on actual months worked in 2025:
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Parents of 1 or 2 children (age 21+): Average monthly income between 2,450 shekels and 7,289 shekels.
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Parents of 3 or more children (age 21+): Average monthly income between 2,450 shekels and 8,020 shekels.
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Single parents of 1 or 2 children: Average monthly income between 1,510 shekels and 11,190 shekels.
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Single parents of 3 or more children: Average monthly income between 1,510 shekels and 13,660 shekels.
Additional Grants and How to Apply
Eligible families may also benefit from special supplements, including up to 500 shekels per month for each toddler under the age of three starting from 2024. Additionally, female salaried workers aged 60 and older born after January 1, 1960, can request an advance on their 2026 work grant.
«One out of every three eligible individuals fails to submit an application and misses out on thousands of shekels. Filing a claim is simple, straightforward, and free of charge.»
Applicants can submit their claims online through the Tax Authority website by completing identity verification, updating their personal and bank details, and submitting the form. Online applications for the 2025 tax year remain open until the end of 2027, while claims for the 2024 tax year can be submitted online until December 31, 2026.
