Purchase tax (mas rechisha) is the biggest cost of buying in Israel after the price itself, and it depends on who you are, not where the home is: a foreign resident pays 8% from the first shekel, an Israeli resident buying an only home pays nothing on the first ₪1,978,745, and a new immigrant inside the benefit window pays 0.5% on most of the price. This calculator applies the Israel Tax Authority brackets held in Semerenko Group’s fact registry (verified 2026-10-16), adds your lawyer and agent fees with 18% VAT, and shows the cash to close in shekels and in your currency at the Bank of Israel rate of 2026-10-16.

How the calculator works

  • Buyer type sets the brackets. Israeli resident with an only home, foreign resident or additional home, or new immigrant (oleh) inside the window from one year before arrival to seven years after. The tax is cumulative: each band is taxed at its own rate, and only the part of the price inside the band.
  • Fees are yours to set. Lawyer fees in Israel are quoted as a percentage of the price; agent fees too. Semerenko Group charges buyers 2% plus VAT at closing. VAT is 18% (Tax Authority directive 01/2025, in force since 1 January 2025). Registration, appraisal and bank fees are entered as the quotes you received; nothing is assumed.
  • Currency. Results are converted at the Bank of Israel representative rate of 2026-10-16; the rate you get is set by whoever converts the money.
Brackets in force (Israel Tax Authority, 16 January 2026 to 15 January 2027)
Buyer Price band Rate on the band
Israeli resident, only home ₪0 to ₪1,978,745 0%
Israeli resident, only home ₪1,978,745 to ₪2,347,040 3.5%
Israeli resident, only home ₪2,347,040 to ₪6,055,070 5%
Israeli resident, only home ₪6,055,070 to ₪20,183,565 8%
Israeli resident, only home ₪20,183,565 and above 10%
Foreign resident or additional home ₪0 to ₪6,055,070 8%
Foreign resident or additional home ₪6,055,070 and above 10%
New immigrant (oleh), inside the window ₪0 to ₪1,978,745 0%
New immigrant (oleh), inside the window ₪1,978,745 to ₪6,055,070 0.5%
New immigrant (oleh), inside the window ₪6,055,070 to ₪20,183,565 8%

The oleh track above ₪20,183,565 is not in our registry; the Tax Authority directive governs there.

Worked example: a ₪2,500,000 apartment
Item Foreign resident Israeli resident, only home Oleh in the window
Purchase tax ₪200,000 ₪20,538 ₪2,606
Lawyer 0.5% plus 18% VAT (input) ₪14,750 ₪14,750 ₪14,750
Agent 2% plus 18% VAT (input) ₪59,000 ₪59,000 ₪59,000
Closing costs, before registration and bank fees ₪273,750 ₪94,288 ₪76,356
In US dollars at the Bank of Israel rate $88,600 $30,500 $24,700

Computed from the registry brackets and the 18% VAT rate; Bank of Israel rate of 2026-10-16. Registration, appraisal and bank fees are quoted per deal and not included.

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Frequently asked questions

How much is purchase tax for a foreigner buying in Israel?

A foreign resident pays the additional-home brackets: 8% up to ₪6,055,070 and 10% above, cumulative, under the Tax Authority brackets for 16 January 2026 to 15 January 2027. On ₪2,500,000 that is ₪200,000.

Does an oleh pay less purchase tax?

Yes, inside the benefit window (one year before arrival to seven years after): no tax up to ₪1,978,745, 0.5% on the band up to ₪6,055,070, then 8%. On ₪2,500,000 that is ₪2,606 against ₪200,000 for a foreign resident.

What closing costs come on top of purchase tax?

A lawyer (quoted as a share of the price), an agent fee (Semerenko Group charges buyers 2% plus VAT), registration at the Land Registry, an appraisal if you borrow, bank fees and translations. VAT is 18%. Enter your own quotes; the calculator assumes nothing it is not given.

Is the calculator a tax ruling?

No. It applies the published brackets to the price and buyer type you enter. Residency status, trusts, companies, inheritance and the oleh window have conditions; the Tax Authority’s assessment and your lawyer’s advice govern.

Related pages

Sources

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

Verified 2026-10-18 by Chaim Semerenko, Semerenko Group; brokerage under broker of record Pinchas Menachem Reis, licence 324150.

Written by Chaim Semerenko and the Semerenko Group team
Founder and CEO, Semerenko Group

Semerenko Group is the English-first real estate platform for Israel. We combine property information, official market data and tools with representation, negotiation, mortgage and legal coordination, and property management for buyers, renters, sellers and investors.

Published by Semerenko Group under the professional supervision of licensed Israeli real-estate broker Pinhas Menachem Reiss (License #324150). We work with owners, brokers, brokerages and developers across Israel. This is general information, not legal or tax advice; confirm with a licensed professional.

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