Philip Stein

Top 10 Tax Topics for Israelis Moving to the U.S. This Summer

Many Israelis moving to the U.S. do so without thorough planning, often falling victim to double taxation issues. They aren’t at fault, though. Many don’t even know what to ask about or plan for before the move.

These are the top 10 topics we make sure our clients clarify before they move, helping them avoid a failed relocation to the U.S.

Understanding these key areas lets you know what to consider and why they are essential for your move.


When moving from Israel to the U.S., one of the most critical aspects to understand is your take-home salary. Many individuals receive attractive salary offers without fully grasping how much will end up in their bank account. How can you possibly budget your expenses without knowing how much net income you will actually be making? Federal, state, and sometimes local taxes will significantly reduce your take-home pay.

In addition to your base salary, you might be offered bonuses, living arrangements covered by your employer, or other fringe benefits. While these perks are excellent and should not be turned down, they are typically considered taxable income in the United States. This means that the value of these benefits will be added to your gross income, reducing your net take-home pay.

Lastly, the first and second years of relocating to the U.S. may be treated differently regarding taxation, resulting in two very different take-home figures. Understanding these distinctions and planning accordingly is critical to avoiding surprises and managing your finances effectively during your transition.


Understanding state taxes is the next important topic to consider when moving from Israel to the U.S. Many focus on other factors when choosing where to live, such as the quality of schools, housing costs, and community amenities. They often don’t understand the different state tax implications that come into play.

Different states have varying tax rates and regulations, so it’s essential to consider your destination’s specific taxes. The state you move to will significantly impact your net income, as state taxes can vary widely from one location to another.

Another important consideration is that you don’t necessarily need to live in the state where you work. For example, many people working in New York choose to live in neighboring New Jersey. The Israeli community in Tenafly is excellent for our N.J. crowd, but don’t worry; you can also move to Hoboken or Fair Lawn without feeling bad about it

About the Author
Philip is the founder of Philip Stein & Associates, the largest US accounting firm in Israel, specializing in US taxation of US tax residents living in Israel, and of Israeli individuals and companies doing business in the United States. Offices are in Jerusalem, Ramat Gan and Beit Shemesh. Philip grew up on the South Side of Chicago, and graduated from the University of Illinois, followed by an MBA from the University of Michigan. Philip started his career in the tax department of what today is Ernst & Young. He has lectured at Roosevelt University, Loyal University and Northeastern University, and continued to lecture on international tax issues in Asia, Africa, Europe and North American. He is also a frequent speaker for Nefesh B’Nefesh and has advised the Israeli Treasury, Bituach Leumi and the Knesset on various tax issues affecting US citizens living in Israel. Philip’s love of radio led him to start his podcasts which have attracted tens of thousands of listeners. He continues to be an avid Chicago sports fan as well as a lover of mountain hiking, TRX, and snowshoeing (he likes to keep his feet on the ground!).