Who is entitled to a tax refund?

Employees who had too much tax withheld — mainly those who worked part of a year, changed jobs, did not claim credit points, or made independent contributions.

How do I check whether I am owed a refund?

Through the Tax Authority’s free simulator, or based on your Form 106. Checking costs nothing.

How do I file a refund claim?

Online through the Tax Authority website using Form 135, independently. No paid intermediary is needed.

Do I have to pay a company to get a refund?

No. Both checking and filing can be done independently and free of charge.

What if I no longer have Form 106 from an old employer?

You can request a replacement from the employer, and much of the data is also visible in your personal file on the Tax Authority portal. A closed or liquidated employer is the harder case, and is worth raising directly with the Tax Authority.

Tax Refunds for Employees

Here is a surprising fact: a large share of salaried employees in Israel are owed a tax refund — sometimes thousands of shekels — and simply do not know it. The reason is that tax is withheld from salary automatically across the year, and does not always settle correctly by the end of it. This guide explains who qualifies, and how to check and file without paying a percentage to an intermediary.

Disclosure: Educational information only. This is not tax advice. Verify with the Tax Authority. Any action you take is your own responsibility.

Why employees end up owed a refund

For an employee, the employer withholds tax at source throughout the year — but the withholding assumes the whole year will look the same as the current month. When something changes, whether a job move, unpaid leave, unused credit points or independent contributions, the result is that more tax was withheld than was actually owed. That difference belongs to you, but only if you claim it.

The common triggers

Check whether any of these describe you:

You worked only part of the year — the monthly withholding assumed twelve months of work.

You changed employer, or worked several jobs without tax coordination.

You took unpaid leave, served reserve duty, or took maternity leave during the year.

You did not claim credit points you were entitled to — completing a degree, children, or new immigrant status. See tax credit points.

You made independent contributions to a pension, a study fund or life insurance.

You donated to a recognised institution under section 46.

You were entitled to a credit for living in a qualifying locality, or for personal circumstances.

How to check eligibility, free

The first step is simply to check, and checking costs nothing. The Tax Authority operates a free simulator for employees to test refund eligibility. You can also estimate independently using your annual Form 106, which summarises income and deductions from your employer. If the check points to a refund, you then file a formal claim to actually receive the money.

How to file

The claim, Form 135 — the abbreviated return — is filed online through the Tax Authority website, on your own. You need your Form 106 from each employer, documentation of contributions or donations where relevant, and your bank details.

One point worth emphasising: there is no need to pay a "tax refund company" a percentage of money that is already yours. Checking and filing can be done independently. Professional assistance is a choice, not a requirement.

How far back can you claim?

Refund claims can be filed for up to six tax years retroactively. Even if you missed out in the past, money may still be waiting for earlier years — but years do expire, so it is worth not delaying.

Common mistakes

1. Assuming "it does not apply to me" without checking. The check is free.

2. Paying an intermediary before checking independently.

3. Not keeping Form 106 — the key document for the whole process.

4. Forgetting earlier years — up to six are available.

Summary

A tax refund is among the easiest entitlements to claim, and among the most commonly missed. If one of the common triggers describes you, it is worth checking for free and filing yourself without paying a percentage. And do not forget: up to six years back.

See the full tax refund guide, tax coordination, and the taxes section. We provide the knowledge — the claiming is in your hands.