Tahari was born the middle son of an Iranian-Jewish couple in 1952. He has four sisters, Aliza, Diana, Shulie and Illana, and two brothers, Avraham and Yosi. The family immigrated from Iran to Israel, where they resided in a ma'abara transit camp in what is now Mevasseret Zion. In 1953–1957, the family went back to Iran, returning later to Israel. When his parents divorced and his father remarried, Tahari was sent to a boarding school ("Sde Hemed") in Rishon LeZion, later moving to Tel Aviv ("Maon Hayeled"). The following years were spent in Kvutzat Schiller and an Israeli Air Force boarding school in Haifa.