Mas Rechisha is the tax the buyer pays on a property purchase in Israel. It is progressive: each rate applies only to the slice of the price inside its band, and the band table depends on who you are (an Israeli resident buying a sole home, anyone buying an additional home, a non-resident, or a new immigrant). This page is the wiki entry for the topic and the deepest tax page in our guide to buying property in Israel; the money around it (lawyer, agent, VAT, registration) is in the total cost of buying a house in Israel. Every rate and threshold below is rendered from our fact registry, which holds the Tax Authority figures with their source and date.
Which purchase-tax schedule applies to you?
Your buyer status decides the whole schedule, and the gap between schedules on one deal can be hundreds of thousands of shekels. Four definitions carry the page. Mas Rechisha is the buyer’s purchase tax. Resident means tax-resident in Israel (your centre of life is here), which is not the same as holding citizenship. Oleh means a new immigrant under the Law of Return. A replacement home is the case where you buy a new home before selling the old one and still get sole-home treatment, provided the old one is sold inside the statutory window.
Israeli resident buying a sole home
For an eligible Israeli-resident individual buying a sole dwelling, Tax Authority instruction 1/2026 sets a zero-rate band up to ILS 1,978,745, then marginal rates of 3.5%, 5%, 8% and 10% on the higher slices. These thresholds apply from 2025-01-16 to 2028-01-15. Buyer classification, family ownership and the replacement-home conditions need individual assessment; the family unit rule (spouses and minor children count as one buyer) is explained in spouse and child first-home status.
| Slice of the price | Rate on that slice |
|---|---|
| Up to ILS 1,978,745 | 0% |
| ILS 1,978,745 to ILS 2,347,040 | 3.5% |
| ILS 2,347,040 to ILS 6,055,070 | 5% |
| ILS 6,055,070 to ILS 20,183,565 | 8% |
| Above ILS 20,183,565 | 10% |
Existing owner or investor buying an additional home
For an additional dwelling, the schedule is 8% on the portion up to ILS 6,055,070 and 10% above it. There is no zero-rate band. The Tax Authority notice of 12 October 2026 extends this temporary schedule through 2027-02-10 inclusive; no later rate is assumed on this page. Whether a home counts as additional depends on the statutory tests, including homes held by a spouse or minor child.
| Slice of the price | Rate on that slice |
|---|---|
| Up to ILS 6,055,070 | 8% |
| Above ILS 6,055,070 | 10% |
Non-resident or foreign buyer
A residential purchase by someone who is not an Israeli-resident individual uses the same schedule as an additional home: 8% on the portion up to ILS 6,055,070 and 10% above it, from the first shekel. This is the line most foreign buyers under-budget. Sole-dwelling relief depends on the statutory conditions, and owning nothing abroad is not a reliable test of eligibility. The paperwork side is in documents foreign buyers need to buy in Israel, and the resident test itself is in resident versus non-resident status in Israel.
New immigrant (oleh) reduced track
Eligible new immigrants may claim purchase-tax relief under Regulation 12A for a qualifying sole dwelling: 0% up to ILS 1,978,745, 0.5% on the next portion through ILS 6,055,070, and 8% on the portion through ILS 20,183,565. The relief does not apply at all if the full dwelling value exceeds ILS 20,183,565. The Tax Authority application service describes the qualifying period as one year before to seven years after first arrival, claimed once, for a home you live in, with supporting documents. Transitional rules for earlier immigrants and the alternative Regulation 12 route need individual review.
| Qualifying dwelling value | Regulation 12A rate |
|---|---|
| Up to ILS 1,978,745 | 0% |
| Next portion through ILS 6,055,070 | 0.5% |
| Next portion through ILS 20,183,565 | 8% |
| Full dwelling value above ILS 20,183,565 | Relief does not apply |
Lining the purchase date up with your move is the whole game on this track; see buying after aliyah as an oleh and the wider oleh tax benefits.
Commercial property and land
Commercial property, land and residential purchases follow different rules. Commercial property and land are taxed at a single flat rate on the whole value rather than the residential bands. Use the official purchase-tax simulator with the correct property category, and ask your lawyer to confirm any VAT, refund or relief on the transaction.
How is the tax worked out on a ILS 3,000,000 home?
Because the tax is progressive, slice the price and apply each rate to its own slice. Here is the same ILS 3,000,000 home priced three ways. The resident total and the saving against an additional-home purchase are calculated by our registry from the current bands on every refresh; the slice arithmetic is shown so you can check it.
| Slice of the ILS 3,000,000 price | Resident, sole home | Investor or non-resident | Oleh (Regulation 12A) |
|---|---|---|---|
| 0 to 1,978,745 | 0% = ILS 0 | 8% = ILS 158,300 | 0% = ILS 0 |
| 1,978,745 to 2,347,040 (ILS 368,295) | 3.5% = ILS 12,890 | part of the 8% band | 0.5% = ILS 1,841 |
| 2,347,040 to 3,000,000 (ILS 652,960) | 5% = ILS 32,648 | part of the 8% band | 0.5% = ILS 3,265 |
| Total purchase tax | about ILS 45,538 | about ILS 240,000 | about ILS 5,106 |
Basis: for the investor and the non-resident, 8% applies to the whole ILS 3,000,000 (8% of 3,000,000 = ILS 240,000). For the resident, only the slices above ILS 1,978,745 are taxed. For the oleh, the slice from ILS 1,978,745 to ILS 3,000,000 (ILS 1,021,255) is taxed at 0.5% = ILS 5,106. The resident therefore saves ILS 194,462 against the additional-home schedule on this one deal, and the oleh saves nearly ILS 235,000 against the investor (240,000 minus 5,106). On the resident purchase the effective rate is about 1.52% of the price (45,538 divided by 3,000,000) against a flat 8% for the investor. These are illustrative figures, not advice; confirm your own number on the official simulator.
What are the deadlines after you sign?
Two clocks start on the day you sign the purchase contract, and they are not the same clock. The Tax Authority declaration service requires the real-estate declaration within 30 days of the transaction. Payment follows the assessment: the due date, any deferral and any relief depend on the transaction, so your representative should record the actual filing and payment dates from the current rules and the assessment rather than treat filing and payment as one deadline. Missing either clock risks interest, indexation and penalties, so both dates belong in the transaction file with confirmation that each was completed.
What changes if you make aliyah before or after you buy?
If a move to Israel is realistic, the purchase date decides which schedule you get, and the gap is large. Do not assume the final tax position from the purchase date alone: the qualifying window runs from one year before first arrival, so a documented immigration plan can matter even for a purchase made before the move. Buying inside the window still requires the claim and its evidence; timing by itself does not establish eligibility. Regulation 12A, the Regulation 12 route and the transitional rules should be checked against the Tax Authority instruction for your dates. For a replacement home, the adviser should establish the sale deadline, including any statutory extension that applies to your purchase dates. Lender treatment also shifts with status, so plan the sequence alongside getting a mortgage in Israel.
Why does the threshold freeze matter?
The sole-home thresholds in instruction 1/2026 are fixed for the period 2025-01-16 to 2028-01-15 instead of moving with an index. When prices rise during a freeze, more of each purchase lands in the taxed slices, which is a quiet increase in the real bill. The freeze and the temporary additional-home schedule are two different rules with two different end dates: the additional-home schedule is extended through 2027-02-10 by the 12 October 2026 notice, and the sole-home threshold period ends 2028-01-15. Check the bands in force on your signing date, not the ones in force when you started looking.
Does VAT apply on top of purchase tax?
Purchase tax is not the only tax line. VAT has been 18% since 1 January 2025, up from 17%, per the PwC Israel tax summary listed in the sources. New-build homes from a developer are quoted with VAT inside the headline price, and VAT also sits inside ancillary services such as lawyer and agent fees. A second-hand home sold between private individuals carries no VAT. The full picture is in VAT on Israeli property, and the choice it affects is in new versus second-hand property in Israel.
What needs a lawyer or a tax adviser?
Three things, in writing, before contract day. Status: which buyer status you actually qualify for (resident, investor, non-resident or oleh), because the declaration you file states it and it is hard to unwind later. Bands: the exact thresholds and effective dates in force on your signing date. Your number: the shekel figure from the official simulator, agreed with your lawyer. The lawyer also coordinates the buyer-status evidence, the tax calculation, the contractual payment schedule and the registration requirements; what that work costs is in Israeli real estate lawyers for foreign buyers. A tax adviser is the right person for eligibility, transitional provisions and the replacement-home deadline.
Which tool should you use?
The Tax Authority’s purchase-tax simulator is the official calculator and the figure your lawyer will work from. Our purchase-tax page inside the mortgage hub shows the same rates by buyer type next to the financing rules, and the Israel mortgage calculator turns the price plus tax into a monthly payment. The step-by-step process around the tax is in how to buy property in Israel.
Frequently asked questions
How much purchase tax does a foreigner pay in Israel?
A non-resident buying a home pays the additional-home schedule from the first shekel: 8% on the portion up to ILS 6,055,070 and 10% above it, extended through 2027-02-10. On a ILS 3,000,000 home that is about ILS 240,000.
What is mas rechisha?
Mas rechisha is Israel’s purchase tax, paid by the buyer on a property purchase. It is progressive, so each rate applies only to the slice of the price inside its band, and the band table depends on the buyer’s status.
How much purchase tax does an Israeli resident pay on a first or only home?
Nothing on the slice up to ILS 1,978,745, then 3.5%, 5%, 8% and 10% on the higher slices. On a ILS 3,000,000 sole home the total is about ILS 45,538.
What is the oleh purchase-tax discount?
Under Regulation 12A a qualifying sole dwelling is taxed at 0% up to ILS 1,978,745, 0.5% on the next portion through ILS 6,055,070 and 8% on the portion through ILS 20,183,565, claimed once inside the window of one year before to seven years after first arrival. The relief does not apply if the full dwelling value exceeds ILS 20,183,565.
When is purchase tax due?
The declaration is due within 30 days of signing through the Tax Authority declaration service. The payment date comes from the assessment and the rules that apply to your transaction, so record both dates separately.
Is there purchase tax on commercial property or land?
Yes, at a flat rate on the whole value rather than the residential bands. Use the official simulator with the right property category and confirm VAT with your lawyer.
Related pages
- The total cost of buying a house in Israel
- Purchase tax for residents versus non-residents
- Oleh tax benefits
- VAT on Israeli property
- Mas shevach when selling property in Israel
- How to buy property in Israel, step by step
Sources
- Israel Tax Authority, purchase-tax instruction 1/2026 (sole-home and oleh bands, effective dates), read 16 October 2026.
- Israel Tax Authority, notice of 12 October 2026 extending the additional-home schedule, read 16 October 2026.
- Israel Tax Authority, real-estate declaration service (Form 7000 and the 30-day declaration), oleh relief application service and purchase-tax simulator.
- Kol Zchut, purchase-tax calculation and the oleh discount; Nefesh B’Nefesh, planning your aliyah purchase tax; PwC Israel, individual other taxes (VAT 18%, additional-home schedule).
Your one next step: have your buyer status and exact shekel figure confirmed in writing before you sign. Have your purchase-tax position checked before you sign and we will walk you through it.
Checked 16 October 2026 against the Tax Authority extension notice and instruction 1/2026. This is general information, not legal or tax advice; confirm with a licensed professional.
