Exemptions for residents
There are exemptions for residents, such as ILS 36,000 per year for being a resident, and other exemptions for transportation, for purchasing a house, and more as listed below:
- Amount paid for transportation or 10% of total annual salary, whichever is lower for the employees of the private sector.
- The contributions of employees to saving and retirement funds, health insurance, social security, or any other funds approved by the Minister.
- A one-time exemption of ILS 30,000 per year for building a house or an exemption from the amount of actual interest paid on a loan from a bank or lending or housing institution that has been spent on buying or building a house with a maximum of ILS 4,000 annually for a period not exceeding ten years.
- University exemption of ILS 6,000 per year per student for paying one’s tuition fees, one’s spouse’s tuition fees, and one’s children’s tuition fees at the university or community college. The exemption applies to a maximum of two students in each year.