Purchasing residential property in Israel triggers Purchase Tax (Mas Rechisha) which must be paid by the buyer within 60 days of the deal. Brackets are updated annually in January based on real estate indices.
Purchase Tax Brackets 2026 (Single Residential Home)
In 2026, buyers of a single residential property enjoy a complete tax exemption on values up to approximately 1,970,000 NIS. Above this threshold, progressive brackets apply: 3.5%, 5%, 8%, and 10%.
Purchase Tax for Additional Properties (Investors)
For buyers acquiring additional homes, tax is charged from the first Shekel: * Up to approximately 6,050,000 NIS — 8% tax. * Above this value — 10% tax.
Underutilized Reliefs and Special Exemptions
Significant tax discounts are available for specific groups: 1. **Olim Hadashim (New Immigrants)**: Eligible for a reduced tax rate of 0.5% (or full exemptions up to thresholds) within 7 years of Aliyah. 2. **Disabled Buyers & Terror Victims**: Entitled to a reduced rate of 0.5% for residential purchases. 3. **Home Upgraders**: Buying a second home while committing to sell the first within 18 months allows paying single-home rates.