Financial Rights for People with Disabilities

A person with a disability is entitled to a layer of financial rights determined by their disability percentage and its type: a disability benefit from the National Insurance Institute, an income tax exemption at high disability levels, and broad discounts.

General disability benefit

The general disability benefit is paid by the National Insurance Institute to someone whose earning capacity has been impaired by a medical condition. Entitlement and the amount are determined by the degree of incapacity and by income tests.

Disability percentages and the medical committee

Disability percentages are determined by a medical committee of the National Insurance Institute.

The disability percentage is the key to most entitlements — the higher it is, the more rights open up. A committee decision can be appealed, and appealing is often worthwhile where the assessment appears low.

Income tax exemption

Someone assessed with a high medical disability for a defined period may be entitled to an income tax exemption on income from personal exertion, up to a ceiling. The threshold and definitions are set in law and should be verified with the Tax Authority.

Discounts: municipal tax, transport and the disabled parking badge

A person with a disability is entitled to discounts, including a municipal tax reduction, public transport discounts, and a disabled parking badge. Some discounts depend on the type of disability and the percentage assessed.

Further benefits by type of disability

Beyond the benefit and the exemption, targeted benefits exist according to the type of disability, including contributions toward rehabilitation equipment, mobility, and housing assistance. It is worth mapping the specific entitlements through Kol Zchut and with Bituach Leumi.