Income tax - How are exceptional incomes taxed?

Verified 01 January 2026 - Public Service / Directorate of Legal and Administrative Information (Prime Minister)

Income tax: 2026 income tax return for 2025

This page is up to date at 1er January 2026.

However, forms, online services and information materials are not yet available for the 2026 tax year of the 2025 tax return. They will be put online as soon as they are available.

In addition, the draft budget law for 2026 could not be promulgated before 1er January 2026.

The law n°2025-1316 of 26 december 2025 The Special Authorizes the Government to Collect Taxes, Without Modifying the Scales, Until the Adoption of a Budget Law for 2026.

If the Finance Law for 2026 changes the rules presented on this page, the content will be updated after the publication of the Finance Law in the Official Journal.

You received exceptional income in 2025 and you want to avoid a sudden increase in your tax rate. To limit the tax increase, you can apply to benefit from the quotient system.

Income is considered exceptional if it exceeds your usual income and do not renew each year.

For example, the following revenues:

To be considered exceptional, an income must exceed the average taxable income of the previous 3 years.

The comparison applies to the income of the tax home.

However, some revenues are considered exceptional regardless of their amount.

This is particularly the case for the following income:

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Compensation for termination of employment contract (taxable portion)

If in 2025 you received an indemnity for termination of employment contract (for example, in case of dismissal), this income (for its taxable part) shall be considered as exceptional regardless of its amount.

Mobility bonus 

If you received a mobility bonus in 2025, this income is considered as exceptional regardless of its amount.

Voluntary severance pay

If you received a voluntary severance payment in 2025 (for example, in the event of a treaty break), this income is considered as exceptional regardless of its amount.

Voluntary Retirement Allowance or Retirement

If you received a voluntary retirement or retirement benefit in 2025, this income is considered exceptional regardless of its amount.

If you received an exceptional income in 2025, you can request that it be taxed according to the quotient system.

The system of the quotient makes it possible to avoid the progressivity of ₪.

It is applied in 2 steps:

  1. Add the quarter from exceptional income to your regular income
  2. Multiply par 4 the corresponding tax supplement.

The tax on exceptional income is paid in one go.

The income to be taxed under the quotient system shall not not be included in other reported income.

You must enter the total of these revenues according to one of the following:

  • Within the scope provided for on page 3 of Declaration No 2042 C (row 0XX)
  • On free paper attached to Declaration No. 2042.

You must detail the amount and nature of the income exceptional amounts to be imposed on the quotient, collected by each member of the household.

The declaration of income by internet is mandatory if your main residence has internet access and you are able to file your declaration online.

The 2025 return of 2024 income is complete.

The 2026 2025 income tax return will begin in April 2026.

The 2025 return of 2024 income is complete.

The 2026 2025 income tax return will begin in April 2026.

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