Purchase tax is paid by the buyer, not the seller, and the difference between buyer categories is far larger than the difference between price brackets. The same NIS 3 million apartment costs a non-resident roughly NIS 240,000 and an oleh roughly NIS 5,100. For the full tax guide, see Mas Rechisha by buyer status. For the financing budget, see mortgage down payments and purchase and mortgage costs.
How much is purchase tax in Israel in 2026?
The additional-dwelling schedule is 8% up to ILS 6,055,070 and 10% above, extended through 2027-02-10 inclusive. The eligible sole-dwelling threshold period separately ends 2028-01-15. Tax Authority notice, 12 October 2026.
The 2026 brackets
| Buyer category | Price band | Rate |
|---|---|---|
| Non-resident | NIS 0 – 6,055,070 | 8% |
| Above NIS 6,055,070 | 10% | |
| Resident — additional or investment home | NIS 0 – 6,055,070 | 8% |
| Above NIS 6,055,070 | 10% | |
| Resident — sole home | NIS 0 – 1,978,745 | 0% |
| NIS 1,978,746 – 2,347,040 | 3.5% | |
| NIS 2,347,041 – 6,055,070 | 5% | |
| NIS 6,055,071 – 20,183,565 | 8% | |
| Above NIS 20,183,565 | 10% | |
| Oleh chadash — sole home | NIS 0 – 1,978,745 | 0% |
| NIS 1,978,746 – 6,055,070 | 0.5% | |
| Above ILS 6,055,070 up to ILS 20,183,565 | 8%; relief unavailable above the full-value limit |
What the difference looks like in practice
| Property price | Non-resident | Resident, sole home | Oleh, sole home |
|---|---|---|---|
| NIS 2,000,000 | NIS 160,000 | ILS 744 | NIS 106 |
| NIS 2,600,000 | NIS 208,000 | NIS 25,538 | NIS 3,106 |
| NIS 3,000,000 | NIS 240,000 | ILS 45,538 | ≈ NIS 5,100 |
Two figures stand out. A resident buying an additional home pays exactly what a non-resident pays — 8% from the first shekel. Owning one apartment already is, for tax purposes, as expensive as living abroad. And the oleh track is worth roughly NIS 235,000 on a NIS 3 million purchase compared with a non-resident.
Residency is a tax concept, not an immigration one
The single most important thing to understand about purchase tax is that residency is determined under the Income Tax Ordinance — broadly, whether Israel is your centre of life — and not by immigration status. Holding an Israeli passport, or being registered to vote, does not make you a resident for these purposes. Nor does holding only a foreign passport make you a non-resident.
Tax residence, immigration status and eligibility for a specific relief are separate questions. A qualified adviser should determine the classification from the actual facts and current Tax Authority rules before you commit.
This is squarely a question for a licensed Israeli tax adviser, not for a mortgage broker. But it should be asked before you sign a purchase agreement, because it is worth more than any interest-rate negotiation you will ever have.
Deadlines and penalties
- The Tax Authority requires a declaration within 30 days. Confirm the payment date, any statutory deferral and the required tax certificate separately for the transaction.
- Confirm the transaction-specific payment date and any valid statutory deferral with the Tax Authority.
- Late payment may attract statutory charges. Obtain a current calculation from the Tax Authority.
The Land Registry will not register your ownership until the purchase tax certificate is issued, so missing these deadlines delays the transaction itself rather than just attracting a charge.
Other taxes that affect a purchase or sale
| Tax | Rate | Key conditions |
|---|---|---|
| Capital-gains tax | Individual calculation | Ownership history, deductions and exemption conditions affect liability. |
| VAT | Check the quoted price | Confirm whether VAT applies and is included in the transaction price. |
| Replacement-home relief | Individual deadline | Purchase date, completion terms and statutory extensions matter. |
The 2026 betterment-tax exemption ceiling in shekels could not be verified from a primary source at the time of writing — only a 2024 figure was available. Confirm the current ceiling with the Israel Tax Authority before relying on it. Nothing on this page is tax advice.
Israeli purchase tax questions
Do non-residents pay purchase tax in Israel?
The additional-dwelling schedule is 8% up to ILS 6,055,070 and 10% above, extended through 2027-02-10 inclusive. The eligible sole-dwelling threshold period separately ends 2028-01-15. Tax Authority notice, 12 October 2026. Confirm any individual statutory relief.
How much purchase tax does an oleh pay?
The eligible sole-dwelling oleh route is 0% up to ILS 1,978,745, 0.5% on the next portion up to ILS 6,055,070, and 8% on the remaining portion up to ILS 20,183,565. A home whose full value exceeds that upper limit is outside this relief. The Tax Authority application sets the individual eligibility and timing conditions.
Do Israeli residents pay purchase tax on a second home?
Yes — 8% from the first shekel up to NIS 6,055,070 and 10% above, exactly the same as a non-resident. The generous brackets apply only to a sole home. On a NIS 2.6 million apartment, a resident buying a sole home pays NIS 25,538 while a resident buying an additional home pays NIS 208,000.
Are the purchase tax brackets indexed in 2026?
The additional-dwelling schedule is 8% up to ILS 6,055,070 and 10% above, extended through 2027-02-10 inclusive. The eligible sole-dwelling threshold period separately ends 2028-01-15. Tax Authority notice, 12 October 2026.
When must purchase tax be declared and paid?
The Tax Authority requires a declaration within 30 days. Confirm the payment date, any statutory deferral and the required tax certificate separately for the transaction.
Does a non-resident pay betterment tax when selling?
Capital-gains tax and exemptions depend on ownership history, acquisition date and the seller’s circumstances. Obtain an individual calculation using the Tax Authority service.
Summary
The additional-dwelling schedule is 8% up to ILS 6,055,070 and 10% above, extended through 2027-02-10 inclusive. The eligible sole-dwelling threshold period separately ends 2028-01-15. Tax Authority notice, 12 October 2026. The Tax Authority requires a declaration within 30 days. Confirm the payment date, any statutory deferral and the required tax certificate separately for the transaction.
Checked 16 October 2026 against the Tax Authority extension notice and BOI Directive 329. This is general information, not legal or tax advice; confirm with a licensed professional.
