Tax benefits for 58 localities in Judea & Samaria: the list, the criteria, the meaning

On 4 June 2026 the Knesset passed, in its final readings, the tax-benefits law for "eastern frontier" localities in Judea & Samaria. Residents of 58 localities receive a 7% income-tax credit, applied retroactively from 1 January 2026.

Who qualifies?

• An approved locality whose homes lie more than 2 km (aerial) east of the security barrier.
• The locality belongs to a socio-economic cluster below 6 (CBS ranking).
• The credit applies to residents who lived in the locality throughout the tax year.

The localities

The list includes, among others: Avnei Hefetz, Itamar, Alon Moreh, Adei Ad, Achiya, Kida, Bracha, Dolev, Halamish (Neve Tzuf), Hermesh, Talmon, Yitzhar, Kochav HaShachar, Karmei Tzur, Mevo Dotan, Ma'ale Levona, Ma'ale Michmash, Nachliel, Neria, Ateret, Einav, Eli, Amichai, Ofra, Psagot, Rechelim, Rimonim, Shvut Rachel, Shavei Shomron, Shilo, Tekoa, Beit El, Bruchin, Givat Harel, Kochav Ya'akov, Emanuel, Kedumim and more — the binding list is published by the Tax Authority.

What it means for the market

A permanent resident tax credit is, in effect, added disposable income — increasing local purchasing power and the appeal of the qualifying localities. The list follows the geographic and socio-economic criteria, and the benefit joins the broader government investment policy — land settlement, road plans and accelerated planning — that supports the regional market as a whole.

On our interactive map, switch on the "tax-benefit localities" layer to see the geography against projects and transport corridors.