Tax Coordination: How to Stop Overpaying Tax This Month

Don't pay maximum tax for nothing! Discover how to easily complete tax coordination through the Tax Authority's online system and save thousands on your payslip.

If you work at more than one job, or started a new position in the middle of the year, the Israel Tax Authority is likely charging you "default tax" that can reach up to 47%. Tax coordination is the simple technical process that ensures you pay exactly what you owe — and not a shekel more.

Who Needs Tax Coordination?

Employees working at two or more jobs simultaneously. Employees receiving a pension from one source while working at another. Workers who switched employers during the tax year.

How to Complete Tax Coordination Online (Step-by-Step Guide)

The Tax Authority's new system allows you to complete the process in minutes:

Step 1: Log into the Israel Tax Authority website (online tax coordination system).

Step 2: Enter employer details (payroll deduction file numbers).

Step 3: Estimate annual income from each source.

Step 4: Receive an approval letter to download and send to your employer.

How Much Can You Save?

The savings depend on your total income and tax bracket. For many dual-income earners, fixing tax coordination can save thousands of shekels per year — money that was being over-deducted from your payslip every month.

Important Tips

Tax coordination certificates are valid for a single calendar year (January–December). You need to renew each year. If you missed it, you can still claim a tax refund retroactively for up to 6 years.

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The information on this page is for educational purposes. Please consult a professional before making financial decisions.

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Frequently asked

+−Do I need to do tax coordination every year?

Yes, a tax coordination certificate is valid for a single calendar year only (January–December).

+−What happens if I don't do tax coordination?

Your secondary employer will be forced to deduct the maximum tax rate. Don't worry — you can get the money back through a tax refund request at the end of the year.

+−Who needs tax coordination?

Employees working at two or more jobs simultaneously, employees receiving a pension from one source while working at another, and workers who switched employers during the tax year.

+−Can I do tax coordination online?

Yes, the Israel Tax Authority offers an online system where you can complete the entire process in minutes. You will receive a digital approval letter to forward to your employer.

+−How much can tax coordination save me?

Savings depend on your income and tax bracket, but dual-income earners commonly save thousands of shekels per year by preventing over-deduction at the higher default rate.

+−What documents do I need for tax coordination?

You need your ID number, employer payroll deduction file numbers (Tik Nikuyim), and an estimate of annual income from each source. All of this is available on your payslips.

+−Can I get a refund if I missed tax coordination?

Yes, you can claim a retroactive tax refund for up to six years by filing Form 135 with the Tax Authority. Many people recover significant amounts this way.