Israel is rolling out a major financial incentive aimed at encouraging Jews worldwide to make aliyah, offering a new income-tax exemption for immigrants arriving in 2026, Israeli officials confirmed to JNS this week.
Minister of Aliyah and Integration Ofir Sofer and Finance Minister Bezalel Smotrich recently announced the government’s intention to grant a five-year income-tax exemption to new olim (immigrants) and returning residents who relocate to Israel during the 2026 calendar year.

According to guidelines published by the Ministry of Aliyah and Integration, the reform would apply to earned income in Israel, including salaries and self-employed business income, from 2026 through 2030. The exemption would be capped at one million shekels (approx. $335,000 in 2026 and 2027, 600,000 shekels (approx. $200,000) in 2028, 350,000 (approx. $117,000) in 2029 and 150,000 (approx. $50,000) in 2030.

For those employed by a relative, the exemption would be limited to 140,000 shekels (approx. $47,000) annually. The measure is expected to take several months to pass into law, with benefits applied retroactively once enacted.