Israel Purchase Tax (Mas Rechisha) 2026 — Full Brackets
Mas Rechisha (purchase tax) is the tax the buyer pays to the Israel Tax Authority when buying property. It is progressive — each price band is taxed at its own rate, not the whole price at one rate. The 2025–2027 brackets are frozen in nominal shekels (Economic Arrangements Law).
First home (Israeli resident, single property)
| Price band (₪) | Rate |
|---|---|
| 0 – 1,978,745 | 0% |
| 1,978,745 – 2,347,040 | 3.5% |
| 2,347,040 – 6,055,070 | 5% |
| 6,055,070 – 20,183,565 | 8% |
| Over 20,183,565 | 10% |
Investment / additional property / foreign buyer
| Price band (₪) | Rate |
|---|---|
| 0 – 6,055,070 | 8% |
| Over 6,055,070 | 10% |
Worked examples
- First home at ₪2,500,000: purchase tax = ₪20,538
- First home at ₪4,000,000: purchase tax = ₪95,538
- Investment property at ₪2,500,000: purchase tax = ₪200,000
- Investment property at ₪7,000,000: purchase tax = ₪578,899
Who pays what
Purchase tax is always paid by the buyer. An Israeli resident buying a single home pays 0% up to ₪1,978,745. A second-home buyer or a foreign resident starts at 8% from the first shekel. The declaration must be filed with the Tax Authority within 30 days of the transaction.
Frequently asked questions
What is the purchase tax rate on a first home in Israel in 2026?
An Israeli resident buying a single home pays 0% up to ₪1,978,745, then 3.5%, 5%, 8% and 10% at higher bands.
How much purchase tax does an investor pay on a second property?
8% up to ₪6,055,070 and 10% above that, from the first shekel (no exemption).
Do foreign buyers pay more purchase tax?
A foreign resident is not eligible for the first-home band and pays the investment brackets — 8% / 10%.
Do the brackets change every year?
No. Under the Economic Arrangements Law the brackets are frozen in nominal shekels for 2025–2027.