Work Grant (Negative Income Tax)

This may be the easiest money to claim that you do not know about. The work grant — also known as negative income tax — is a payment the State of Israel makes to low and middle income workers, to encourage employment and strengthen the income of working households. Unlike a tax credit, which reduces the tax you pay, this is money paid directly into your account: on average around 4,000 ₪ a year.

And yet many eligible people simply never file, either from lack of awareness or from fear of bureaucracy. This guide sets it out clearly: who qualifies, how much you get, how to check, and how to file without paying a shekel to an intermediary.

Disclosure: The information in this guide is provided as an educational aid only and does not constitute tax advice. Eligibility conditions, amounts and age thresholds are updated annually — verify the exact details with the Tax Authority. Any action you take is your own responsibility.

What the work grant is

The work grant is a Tax Authority instrument designed to reward work at low pay. The idea is simple: rather than a low-paid worker paying income tax, which in most cases they do not pay anyway, the state transfers a payment to them — hence the name negative income tax. The dual purpose is to encourage people to stay in the workforce and to narrow gaps.

It is important to understand that the grant is not a benefit in the ordinary sense. It is conditional on having worked and earned income within a particular range. Someone who did not work at all is not eligible.

Who qualifies

Eligibility rests on two main axes: personal circumstances and age, and income level.

Age and family conditions

In general, those eligible are:

Parents of children above a threshold age set in law.

People aged 55 and over — including those without children.

People with disabilities under certain conditions, also including those without children.

The precise ages are updated periodically, so check them in the Tax Authority's official eligibility calculator.

Income conditions

The grant targets a band of low to middle income. There is a lower threshold, to confirm you genuinely worked, and an upper threshold above which income is too high to qualify. Income is assessed annually and divided by the number of months worked in that year. Conditions relating to asset ownership and income from other sources are also examined.

Further conditions

Additional conditions apply, for instance regarding the number of apartments owned. Because the combination of all these conditions is complex, the reliable way to know whether you qualify is simply to check the official calculator. It takes minutes.

The self-employed qualify too

A common error is assuming the work grant is only for employees. In practice self-employed people meeting the income and personal conditions may also qualify. The main difference is how income is assessed — for the self-employed it derives from the annual return. If you are self-employed on low to middle income, do not skip the check. See also the self-employed section.

How much you receive

The amount depends on average monthly income, family circumstances and the number of children. On average it is around 4,000 ₪ a year, but the figure varies: it climbs as income rises toward a peak, then declines gradually toward the upper threshold.

An important addition: a parent of a child under the age of three may be entitled to an additional grant beyond the base amount. This is one of the supplements most commonly missed.

The rising-then-falling structure exists deliberately, to prevent a situation where a small pay rise costs you the entire grant. It preserves the incentive to keep working and increase income. Because the amount is entirely personal, guessing is pointless — the official simulator will calculate it for you.

How to check eligibility and amount

The Tax Authority operates a free online eligibility simulator, where you enter income and personal details and receive an answer: whether you qualify, and for how much. This is the recommended first step before anything else. There is also a claim status service, by ID or claim number, for those who have already filed and want to track progress.

How to file

There are two main routes:

1. Online filing through the Tax Authority website, independently. This is the fastest and most convenient route.

2. Filing at a post office branch, for anyone who prefers to submit physically, through the postal bank.

A critical point that saves you money: there is no need whatsoever to pay a company or intermediary to file for a work grant. The process is simple, free, and can be done alone. Companies specialising in work grant submissions charge a percentage of money that is coming to you regardless — exactly as with tax refunds.

What to prepare before filing

The process is simple, but it helps to have to hand: your ID, bank account details for receiving payment, and your income figures for the relevant year — payslips if employed, or return data if self-employed. Employees can use the annual Form 106 to consolidate income. With those details, completion takes minutes.

When the money arrives

Once the claim is approved, the grant is paid in several instalments across the year rather than as a single payment. The dates are published by the Tax Authority. Anyone who has filed and wants to know where the claim stands can use the status service.

Can you file retroactively?

Yes, and this matters. A work grant claim can be filed for previous years, generally up to two years back. Even if you missed out previously, money may still be owed to you for years already passed. In 2026, for example, claims can be made for the 2024 and 2025 tax years. It is worth checking every year still open to claim.

Work grant versus tax credit

A common confusion. A tax credit, such as credit points, reduces the tax you pay — but if you are not paying tax anyway, it returns nothing to you. The work grant, by contrast, is a positive payment that reaches you even if you paid no tax at all, which is precisely why it matters most to low-paid workers. For more on tax generally see the taxes section.

Five common mistakes

1. Not checking at all. Assuming "this is not for me" without testing it is the most expensive mistake.

2. Paying an intermediary. Filing is free and can be done alone.

3. Missing the young child supplement. Parents of a child under three may receive more.

4. Not filing retroactively. Money from previous years sits unclaimed.

5. Not tracking the claim. Using the status service prevents a claim quietly going missing.

Summary — check, it takes minutes

The work grant is among the simplest entitlements to claim and among the most commonly missed. If you work on low to middle income, are a parent, or are over 55, it is well worth checking. The official calculator takes minutes, filing is free, and previous years can still be claimed.

This is part of a wider picture of entitlements and money waiting to be claimed: see also the taxes section on credit points, refunds and coordination, and the benefits section. We provide the knowledge — the filing, as always, is in your hands.