Purchase tax (מס רכישה) is a tax the buyer pays on every purchase of real estate. The amount depends on the value of the property and on whether it is a single (only) apartment or an additional apartment.
Brackets for a single apartment
These brackets are valid from 16.1.2025 to 15.1.2028. They were frozen under the Economic Arrangements Law and are not updated by the CPI during this period.
| Purchase value | Tax rate |
|---|---|
| Up to NIS 1,978,745 | 0% |
| NIS 1,978,745 – 2,347,040 | 3.5% |
| NIS 2,347,040 – 6,055,070 | 5% |
| NIS 6,055,070 – 20,183,565 | 8% |
| Above NIS 20,183,565 | 10% |
Brackets for an additional apartment
| Purchase value | Tax rate |
|---|---|
| Up to NIS 6,055,070 | 8% |
| Above NIS 6,055,070 | 10% |
According to the Israel Tax Authority, these rates apply to purchases up to and including 10.2.2027.
Examples
- Single apartment for NIS 1,900,000 – exempt, NIS 0.
- Single apartment for NIS 2,500,000 – 3.5% on NIS 368,295 (about NIS 12,890) + 5% on NIS 152,960 (about NIS 7,650) = about NIS 20,540.
- Additional apartment for NIS 1,800,000 – 8% = NIS 144,000.
Exact calculation: purchase tax calculator (in Hebrew).
What is a "single apartment"?
Your only residential apartment. The check usually also covers your spouse and minor children. A small partial share in another apartment may sometimes not count, according to detailed rules in the law.
Upgraders
Those who sell their previous apartment within the period set by law (usually 18 months, with special rules for buying from a contractor) can pay tax as on a single apartment.
Relief
There is relief for new immigrants (olim), people with disabilities, victims of hostile acts and others, under conditions set by law. Check your eligibility with your lawyer.
The binding source is the Israel Tax Authority. Before any transaction, check with the official simulator.