Purchase tax (mas rechisha) calculator: what you pay in 2026
The schedule is progressive for a resident buying their only home, 8% from the first shekel for a non-resident or an investor, and close to zero for a new immigrant. Enter the price and your situation.
Breakdown by bracket
| Bracket | Rate | Tax |
|---|
Brackets of 16 January 2025, frozen until 15 January 2028 (Arrangements Law). A non-resident is taxed as an additional-home buyer unless they become an Israeli resident within two years of the purchase. Payment is due within 60 days of signing.
The 2026 brackets (frozen until 15 January 2028)
| Price band | Only home, resident | Additional home, non-resident | New immigrant (oleh), only home |
|---|---|---|---|
| up to ₪1,978,745 | 0% | 8% | 0% |
| ₪1,978,745 to ₪2,347,040 | 3.5% | 8% | 0.5% |
| ₪2,347,040 to ₪6,055,070 | 5% | 8% | 0.5% |
| ₪6,055,070 to ₪20,183,565 | 8% | 10% | 8% |
| above ₪20,183,565 | 10% | 10% | 10% |
The rates apply by band, like a progressive income tax: on a ₪2.5M property, a resident pays 0% on the first ₪1,978,745, 3.5% on the next band and 5% on the rest. At ≈ ₪3.6 to the dollar, the 0% band runs to about $550,000 (≈ £430,000).
Which status applies to you
Resident, only home
0% → 10%- Israeli tax resident, or becomes one within two years.
- Owns no other home (or sells the previous one within 18 months).
- Progressive schedule, exemption up to ₪1,978,745.
Non-resident or investor
8% → 10%- Anyone who is not an Israeli resident, whatever their nationality or whether they are Jewish.
- Any resident who already owns a home.
- 8% from the first shekel, 10% above ₪6,055,070.
New immigrant (oleh)
0% → 0.5%- Purchase between one year before and seven years after aliyah.
- Only home, purchase from 15 August 2024 to 15 January 2028.
- 0% up to ₪1,978,745, 0.5% up to ₪6,055,070, then the normal schedule.
Three worked examples on the same ₪2,500,000 property
| 0% on ₪1,978,745 | ₪0 |
| 3.5% on ₪368,295 | ₪12,890 |
| 5% on ₪152,960 | ₪7,648 |
| Tax | ₪20,538 (0.8%) |
| 8% on ₪2,500,000 | ₪200,000 |
| Tax | ₪200,000 (8%, ≈ $55,500) |
| 0% on ₪1,978,745 | ₪0 |
| 0.5% on ₪521,255 | ₪2,606 |
| Tax | ₪2,606 (0.1%) |
Between the non-resident and the oleh, the gap is close to ₪200,000 on the same apartment. That is the first reason buyers who are considering aliyah plan it before buying, not after; the other benefits are in buying as a new immigrant. To put these amounts in context, the tax on the median price in 15 cities is worked out in Israel real estate prices by city.
When and how to pay
- Declaration within 30 days. The lawyer files the transaction declaration (hatsharat mechira ve-rechisha) with the land taxation office (misui mekarkein) within 30 days of signing the contract.
- Payment within 60 days. The tax is due within 60 days of signing, even if you do not have the keys yet. After that, interest and indexation accrue.
- Self-assessment. You pay the amount your lawyer has calculated; the tax authority then reviews and can correct it within eight months.
- Certificate for the Tabu. Without the tax authority’s clearance (ishur mas rechisha), the transfer of title cannot be registered at the land registry.
On an off-plan purchase, the tax is calculated on the contract price (future indexation excluded) and paid within the same deadlines, even if delivery is three years away. Americans should note that the wire for the tax, like any transfer over $10,000 into an Israeli account, falls within FBAR and FATCA reporting on the account that holds it (see buying property in Israel from the USA). The non-resident schedule in short form is in purchase tax in Israel for foreigners.
Frequently asked questions
Does a non-resident pay more purchase tax than an Israeli?
Yes, if the Israeli is buying their only home: the non-resident is taxed on the "additional home" schedule, 8% up to ₪6,055,070 then 10%, with no 0% bracket. On a ₪2.5M property the gap is about ₪180,000 (≈ $50,000).
Can I get the tax back if I make aliyah after buying?
Yes, in two cases: a buyer who becomes an Israeli resident within two years of the purchase and for whom it is the only home can ask to be reclassified on the "only home" schedule; and an oleh can use the oleh schedule for a purchase made up to one year before aliyah.
Do the brackets change every year?
Normally yes, on 16 January, indexed to the consumer price index. The 2025-2026 Arrangements Law froze the amounts until 15 January 2028: the 2026 and 2027 thresholds are those of 16 January 2025.
What about a couple where only one spouse is Israeli?
The tax authority looks at the household: if the spouses buy together, one is a resident and it is their only home, the "only home" schedule generally applies to the whole purchase. Couples with separate property or buying unequal shares are handled case by case.
Is Israeli purchase tax deductible in the US or UK?
No. Purchase tax is a transaction tax, not an income tax, so it is not creditable under the US–Israel tax treaty and not deductible on a US return; the same goes for UK stamp duty logic. It does add to your cost basis, which reduces the capital gain when you sell.
How we work
Every amount, bracket and rate on this page is checked against the official source listed at the bottom and dated. When a schedule or rate changes, the page is updated within days. Our methodology.
Sources
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