Keren hishtalmut (study fund) in Israel

Deposits and the 2026 ceiling

The benefit covers a salary of up to ₪15,712 a month (₪188,544 a year). Your employer's deposit up to that ceiling is not taxed as income, and your own 2.5% comes out of pay that was already taxed.

Deposits above the ceiling are allowed: your employer's part is taxed as income when it goes in, and the gains on them pay 25% when you withdraw on time.

A self-employed person can deduct up to 4.5% of taxable income, counting income of up to ₪293,397 a year less any salary an employer already deposits on. Gains are exempt on deposits of up to ₪20,566 a year.

When you can withdraw

• Six years after the first deposit: at any age, for any purpose.
• After three years: for studies or training.
• After three years, once you reach retirement age: for any purpose.

You can take all of it or part of it. Nothing forces you to withdraw at six years, and money you leave in keeps growing without tax. After a full withdrawal, new deposits start a new period.

If you withdraw early

Before those dates, your employer's part and the gains on both parts are taxed at your marginal rate. Your own deposits are not taxed again. The fund may withhold at the top rate, 47%, unless you bring an approval from the tax assessor, and you can claim back any excess after the year ends.

What the tax-free gains are worth

₪1,571.20 a month at 6% a year after fees, with 2% inflation. The taxable account pays 25% of the real gain when sold. The gap is small at six years and grows quickly after that, which is why many people leave the fund invested.

See it in Moneta

In the Pension tab, choose Keren Hishtalmut for withdrawals with no tax. To compare it with a taxable account, use the Invest calculator's compare mode with CG tax at 0% in one scenario and 25% in the other.