Purchase tax, mas rechisha, is usually the largest single cost on top of the price of an apartment in Israel. It is worked out in bands, so two buyers paying the same price can owe very different amounts. Pick the track that fits you and drag the price to see where you land.
The tax is not one percentage of the price. The price is cut into bands, each band has its own rate, and the amounts are added together. So an apartment at ₪2,100,000 bought as an only home is taxed at zero on the first ₪1,978,745 and at 3.5% only on the remainder. That is why the effective rate in the box above is usually far lower than the headline rate.
An oleh buying a home to live in gets a reduced track from one year before aliyah until seven years after it. Since the August 2024 reform the first ₪1,978,745 is exempt and the band above it runs at 0.5%, which on a typical Carmei Gat apartment saves tens of thousands of shekels. You can use it once. If you made aliyah before that reform, the older track may suit you better and your lawyer will check which one to claim.
If you already own an apartment and are buying your next one, you are not automatically a second home buyer. Sell the first within 18 months and you are taxed on the only home track. Miss the window and the difference is substantial, so it is worth planning the sale and the purchase together rather than one after the other.
Purchase tax is one line in the budget. Lawyer fees, the mortgage, appraisal, moving, and on a new build the linkage to the construction index all sit alongside it. For a new project from a developer there is usually no agent fee for the buyer. On a resale there is. Ask for the whole picture in writing before you sign anything.
It is the purchase tax paid by the buyer to the Israeli Tax Authority on buying property. It is calculated in bands, each with its own rate, and is normally due within 60 days of signing.
Under the track in force since 15 August 2024, an oleh buying a home to live in pays nothing on the first ₪1,978,745 and 0.5% on the portion up to ₪6,055,070. Above that the normal higher rates apply. The benefit runs from one year before aliyah to seven years after.
Yes. A second home starts at 8% from the first shekel. But if you are selling your existing apartment within 18 months of the purchase, you are treated as an only home buyer instead.
A buyer who is not an Israeli resident is taxed on the second home track, starting at 8%, unless they qualify as an oleh.
It is an estimate using the published 2026 brackets. Eligibility details, the older oleh track and anything unusual in your situation are confirmed by your lawyer before signing.
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