Riccardo Saponara opened the scoring for Italy before Israel had Eyal Golasa sent off for a robust challenge on the goalscorer.
Manolo Gabbiadini then scored either side of half-time before Alessandro Florenzi rounded off the scoring as Italy built on a 1-0 win over England in their opening match.
Italy were denied the opening goal on 11 minutes when Israel keeper Boris Klaiman kept out Lorenzo Insigne's shot, but the Azzurrini were in front seven minutes later.
Insigne's floated pass picked out Ciro Immobile inside the penalty area and his lay-off was fired home first time by Saponara.
Israel had an immediate chance to hit back, but Alon Turgeman failed to find a clean connection after being teed up by Mohammed Kalibat.
The hosts were reduced to 10 men eight minutes before half-time when Golasa was shown a straight red card for a sliding two-footed challenge on Saponara.
The injured Insigne was replaced by Fausto Rossi and Italy scored a second goal on 42 minutes when Immobile was again involved as he flicked the ball to Gabbiadini to drive home from 20 yards.
The Italians were now in cruise control and made it 3-0 on 53 minutes when Gabbiadini drilled home a wicked, low free-kick from 25 yards into the bottom corner.
And the rout was completed with 20 minutes to go when Florenzi's attempted one-two came back to him and he slipped the ball through a defender's legs before calmly finishing past Klaiman.