Keren Hishtalmut קרן השתלמות 7-Year Tax-Free Calculator
Keren Hishtalmut קרן השתלמות (advanced study fund) is Israel's most generous tax-free savings instrument. Lock for 7 years, then withdraw tax-free up to ceiling. Salaried employees: 7.5% employer + 2.5% employee.
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Keren Hishtalmut קרן השתלמות (study fund) is Israel's premier tax-advantaged savings instrument. Contribute 10% of salary (7.5% employer + 2.5% employee). Lock 7 years, then withdraw tax-free up to the ceiling.
Why Keren Hishtalmut is Special
Tax-exempt contribution (within ceiling). Tax-exempt growth. Tax-exempt withdrawal after 7 years. Only Israeli savings vehicle with triple tax exemption. Massively undersold to younger workers.
7-Year Lock-up
Each contribution has its own 7-year clock. Withdraw before 7 years = capital gains tax (25%). After 7 years = fully tax-free (within ceiling). Many use it as 7-year savings cycle for major purchases (home down payment, education).
Salary Ceiling 2026
2026 ceiling ~ ₪15,712/mo. Contributions on salary up to this amount are fully tax-free. Above ceiling, contributions still allowed but withdrawal taxed at capital gains rate. High earners can split contributions strategically.
Self-Employed Atzma'i Version
Self-employed can contribute Keren Hishtalmut directly, deductible up to ₪19,920/yr (4.5% of capped income). Similar 7-year + tax-free benefits. Often combined with Section 47 retirement savings for full tax deferral.
Last updated May 2026. Sources: Israel Tax Authority, Bituach Leumi.