Purchase Tax Calculator — Israel 2026
Calculate purchase tax (Mas Rechisha) by updated 2026 brackets — first home, second property, and commercial real estate.
Free guide. For an exact figure for your transaction — contact us for legal advice.
Purchase Tax Brackets — 2026
First Home (Sole Residential Property)
| Property Value (ILS) | Tax Rate |
|---|---|
| Up to 1,978,745 | 0% (exempt) |
| 1,978,745 – 2,347,040 | 3.5% |
| 2,347,040 – 6,055,070 | 5% |
| 6,055,070 – 20,183,565 | 8% |
| Above 20,183,565 | 10% |
* Tax applies only to the portion within each bracket — not to the full amount.
Second Property and Above (Additional Residential Property)
| Property Value (ILS) | Tax Rate |
|---|---|
| Up to 1,352,280 | 8% |
| 1,352,280 – 2,011,865 | 5% |
| Above 2,011,865 | 10% |
* Tax applies from the first shekel — no exemption for second properties.
Commercial Property / Land
| Property Value | Tax Rate |
|---|---|
| Any amount | 6% (flat rate) |
* Fixed 6% on the entire purchase price — no brackets.
How Purchase Tax Is Calculated
Purchase tax (Mas Rechisha) is calculated on a bracket system — similar to income tax. Each bracket of the purchase price is taxed at the rate for that bracket only, not on the entire price. The brackets are updated annually in line with the consumer price index.
There are three separate bracket tables:
- First home (sole property) — full exemption up to approximately 1.98 million ILS, then 3.5%, 5%, 8%, 10% on higher brackets.
- Second property and above — starts at 8% from the first shekel, 5% in the middle range, 10% above 2 million ILS.
- Commercial property / land — flat 6% on the entire amount, no brackets.
The brackets above are for 2026. These figures are updated periodically — always verify with an attorney before completing a transaction.
Important — What These Brackets Do Not Account For
The brackets above give an estimate based on the official rates — but there are factors that affect the actual amount payable:
- Reduced rates for new immigrants (olim chadashim)
- Reduced rates for persons with disabilities and victims of hostile action
- Refund of purchase tax after selling the existing apartment (up to 24 months after purchase)
- "Mechir Lamishtaken" (subsidised housing programme) — calculated on market value, not the subsidised price
- Complex transactions involving multiple properties
For an exact confirmed figure for your transaction — consult a real estate attorney. Free initial consultation.
For an exact figure before your transaction — free initial consultation
Adv. Liron Yitzhak Elmaliach — 33 HaShneim Asar, Pisgat Ze'ev, Jerusalem