Working Students – Tax Treatment

Credit Points

Working students receive the standard 2.25 credit points for Israeli residents. Upon completing a degree, they receive an additional 1.0 credit point (bachelor's) or 0.5 point (master's) in the year after graduation. Most part-time working students earn below the effective tax-free threshold created by their credit points.

Example

Student working part-time earning ₪6,000/month (₪72,000/year).

Credit points: 2.25 × ₪2,904 = ₪6,534

Tax on ₪72,000: ~₪7,200

After credits: ₪7,200 − ₪6,534 = ₪666/year (under 1% effective rate)

A female student: 2.75 points = ₪7,986 credits → pays ₪0 tax.

בסיס חוקי

  • Section 34–40 – Credit point provisions

Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.