Are you an Israeli tax resident?
Israeli tax residency is determined mainly by where the center of your life is: your permanent home, your family, your work, and your economic and social ties. There are also presumptions based on the number of days you spend in Israel, and either you or the Tax Authority can rebut them. If you are an Israeli tax resident, you are taxed on your worldwide income and may be required to file, regardless of your US citizenship.
For the official rules, see the Israel Tax Authority.
The salaried exemption, and when it falls away
Israel exempts some salaried employees from filing, but that exemption falls away in many situations common to Americans here: self-employment income, being a controlling shareholder, holding foreign assets or foreign financial accounts above the annual threshold, significant securities activity, rental income, or a foreign pension. If any of these apply to you, you likely need to file.
New olim: the reporting obligation from 2026
A change that applies from 1 January 2026: new olim and veteran returning residents who became Israeli residents on or after that date must file an annual return and report their foreign income, even though the income itself remains exempt during the benefit period. The exemption from tax stayed. The exemption from reporting did not. This reporting obligation also covers trusts, which carry their own registration and reporting requirements in Israel.
Your US return is separate
Your US filing obligation is separate. Filing a US return does not replace the Israeli one, and being an Israeli tax resident does not remove your US filing duty as a citizen.
What to do
If you are not sure whether you need to file, it is worth checking before a deadline or a demand from the Tax Authority arrives. Our Israeli Tax Return page covers what filing involves, and our Annual Filing guide covers both the Israeli and US sides. We offer a free 30-minute consultation to review your situation.
Frequently Asked Questions
I am salaried and tax is withheld from my pay. Do I still have to file?
Often, yes. The salaried exemption falls away in several common situations, listed in the section above. If any of them apply to you, you likely need to file.
I am a new oleh and my foreign income is exempt. Do I still file?
If you became an Israeli resident on or after 1 January 2026, yes. You must file and report the foreign income, even though it stays exempt during the benefit period. The exemption from tax stayed. The exemption from reporting did not.
Does filing my US return cover the Israeli one?
No. The two are separate. Filing in the US does not replace an Israeli return, and being an Israeli tax resident does not remove your US filing duty as a citizen.