Israel's high earners leaving – taking billions in potential tax revenue with them

The number of affluent Israelis working in high-income fields such as healthcare and hi-tech who are leaving the country has doubled over the past five years, according to a new study published by the Israel Tax Authority, raising concerns about both Israel’s future tax revenues and the loss of highly skilled workers.

The study found that the profile of Israelis leaving the country has changed significantly, with emigration increasingly concentrated among higher-income earners. The trend could deprive Israel of some of its most highly educated and skilled workers while also reducing the tax revenues available to fund government services.

“From all the indicators regarding Israelis recently leaving the country, a consistent picture emerges: the pace of emigration among the strong and affluent strata of society increased, whereas among the weaker strata, the departure rate is almost unchanged,” said Dr. Ariel Greizaz and Nili Ben-Tovim, the authors of the study.

“An analysis of the emigrants’ incomes relative to the average income in the population reveals that previously, the emigrants’ income before leaving was similar to the average income in the economy, whereas today their income is about 50% higher, further evidence that in recent years, an affluent population has been emigrating from Israel.”

The report warned that the trend represents more than a potential “brain drain.” As more high-income Israelis leave, the country could lose a significant source of tax revenue, potentially reducing the level of public services available to the broader population and creating conditions that could further encourage emigration.

“If this alarming trend continues at this rate, within five years, Israel could be losing NIS 3.5 billion in tax revenues every year,” said Greizaz and Ben-Tovim. “The increase in the age of emigrants affects total tax receipts in a non-linear way, because those aged 30-50 are the high-income earners and the primary taxpayers.”

The study did not identify a single primary reason for the increase in emigration. Instead, it pointed to several overlapping crises and periods of upheaval in Israel in recent years, beginning with the disruption caused by the COVID-19 pandemic and continuing through political instability, multiple election cycles and widespread protests over the government's judicial reform plans.

Those tensions were followed by the Hamas-led massacre of Oct. 7, 2023, and the ensuing war involving Israel and Iran-backed terrorist groups across the region, which caused further disruption and hardship.

The findings come amid other evidence of increased emigration from Israel. A recent study by researchers at Tel Aviv University found that as many as 50,000 Israelis emigrated in 2025, marking the third consecutive year in which that many people left the country.

“More Israelis, including many high-earners such as physicians and tech workers, are leaving Israel in recent years,” Itai Ater, an economics professor at Tel Aviv University’s Coller School of Management, told The Times of Israel. “It is crucial that we tackle this dangerous trend before it becomes too late.”

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