Government tosses tax breaks at exhausted reservists

Nava Freiberg is The Times of Israel's deputy diplomatic correspondent.

Illustrative: IDF soldiers are seen in the Gaza Strip in a handout photo released August 4, 2025. (Israel Defense Forces)
Illustrative: IDF soldiers are seen in the Gaza Strip in a handout photo released August 4, 2025. (Israel Defense Forces)

Prime Minister Benjamin Netanyahu, Defense Minister Israel Katz, and Finance Minister Bezalel Smotrich announce the government’s approval of new tax benefits for IDF reservists, in a statement recorded during a cabinet meeting earlier today.

The decision will grant income tax credit points to combat reservists on a graduated scale based on the number of days served, according to the Prime Minister’s Office.

“Today, we’re delivering additional benefits to reservists — who truly deserve everything we can give them,” Netanyahu says in the video message published by the PMO.

The move comes amid growing complaints of fatigue among reservists who spent much of the last two years fighting instead of spending time with their families or working, putting major strains on emotional health and financial wellbeing. Officials have reported declining turnout rates among called-up reservists in recent months.

The plan, according to the PMO, will grant income tax credit points to combat reservists based on the number of days they served during the previous tax year. The benefit will follow a graduated model: those who served between 30 and 39 days will receive half a tax credit point; those who served between 40 and 49 days will receive three-quarters of a point; and those who served 50 days will be eligible for one full credit point. For every additional five days of service beyond that, reservists will receive an added quarter-point, up to a maximum of four credit points per year, potentially amounting to thousands of shekels annually, according to the PMO.

“The message is that from now on, being a reservist in Israel is a status the state is committed to. Reserve soldiers are deployed on every front — from the aircraft that struck in Iran, to tunnel warfare in Gaza, to counterterror operations in the West Bank, and to halting terror in Syria, Lebanon, and beyond…Today, we are cementing their status with this decision,” Katz adds.

Last month, IDF Chief of Staff Lt. Gen. Eyal Zamir reportedly ordered a 30 percent reduction in the number of reservists deployed to active combat zones in the coming months to address the issue.

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