Eligible Israeli-resident individuals buying a sole dwelling can use a zero-rate band followed by marginal brackets. The regular additional-home schedule has two marginal rates from the first shekel; specific relief may apply to some buyers. The full guide to purchase tax in Israel, with every band by buyer status, is here; this page answers one question: how your status as a resident, a non-resident or an investor changes what you pay on Mas Rechisha.

Who counts as a resident for purchase tax?

Residency and home ownership are separate tests. Reduced sole-home brackets require an eligible Israeli-resident individual and the statutory sole-home conditions; a passport or a first-ever purchase does not by itself establish eligibility. The test itself is explained in resident versus non-resident status in Israel, and the ownership side in whether a foreigner can own property in Israel.

Two official sources set the bands on this page: Tax Authority instruction 1/2026 for the sole-home schedule (a zero-rate slice up to ILS 1,978,745, then 3.5%, 5%, 8% and 10% on the higher slices, valid 2025-01-16 to 2028-01-15), and the Tax Authority notice of 12 October 2026, which keeps the additional-home and non-resident schedule at 8% up to ILS 6,055,070 and 10% above it through 2027-02-10 inclusive. Whether any relief applies to you is a separate assessment.

What does a resident pay on a sole home?

An eligible resident buying their only dwelling pays nothing on the first band, then climbs through marginal rates, so a modest first home can cost little or no purchase tax. The zero band runs up to ILS 1,978,745, and the rates on the higher slices are 3.5%, 5%, 8% and 10%.

What does a non-resident or investor pay?

Under the ordinary schedule, where no specific relief or exception applies, a buyer in this category pays 8% on the portion up to ILS 6,055,070 and 10% above it, starting from the first shekel. There is no tax-free band. An Israeli who already owns a home pays the same on a second purchase, the applicable schedule depends on statutory residence, household ownership and qualifying relief, not citizenship alone.

How big is the gap on a 2 million shekel apartment?

For the illustrative 2 million shekel purchase, an eligible resident sole-home buyer is taxed only on the portion above the zero-rate band. Under the regular schedule, with no applicable relief, 8% of 2 million is 160,000 shekels. Check the buyer’s status and transaction date in the official simulator.

Where does the new immigrant track fit?

A qualifying new immigrant buying a sole dwelling can use a separate reduced track: 0% up to ILS 1,978,745, 0.5% on the next portion up to ILS 6,055,070, and 8% up to ILS 20,183,565. A property worth more than that upper limit is outside the relief. Eligibility and timing are in oleh tax benefits and buying after aliyah; confirm yours with the Tax Authority’s oleh application service and the 2026 instructions.

What should you confirm before signing?

Confirm three things in writing before contract day: which buyer status you actually hold, the bands in force on your signing date, and the shekel figure from the official simulator. To compare current homes for sale, see our buy property in Israel page.

Frequently asked questions

How much purchase tax do foreigners pay in Israel?

Under the ordinary schedule and without qualifying relief, a foreign buyer pays the additional-home schedule from the first shekel: 8% up to ILS 6,055,070 and 10% above it. There is no tax-free band.

What is mas rechisha?

Mas Rechisha is Israel’s purchase tax, paid by the buyer. It is progressive: each rate applies only to the slice of the price inside its band.

Do new immigrants pay less purchase tax?

Qualifying new immigrants buying a sole dwelling can use a reduced track with its own bands, subject to conditions and a value limit.

Does an Israeli investor pay the same as a foreigner?

Under the ordinary additional-home schedule, the same marginal bands apply; the buyer’s actual residence, household ownership and any special relief or exception still need a separate assessment.

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Checked 16 October 2026. This is general information, not legal or tax advice; confirm with a licensed professional.