Purchase Tax in Israel (Mas Rechisha) 2026: Every Bracket, and Exactly How Much an Oleh Saves

Israelos · Market Knowledge · Rates current for 2026 (Israel Tax Authority directive 1/2026, thresholds valid through Jan 2027). Israelos provides market information only — not legal or tax advice, and not a recommendation. Always verify your case with a qualified Israeli real-estate lawyer and your home-country accountant.

How mas rechisha works

Purchase tax in Israel is progressive and tiered — like income tax, only the portion of the price inside each band is taxed at that band's rate. Which table applies to you depends on your buyer status: an Israeli resident buying their only home, an investor / additional-property buyer, a foreign (non-resident) buyer, or a new immigrant (Oleh). There is no separate "foreigners' scale" — a non-resident simply doesn't qualify for the single-home relief, so they pay the higher additional-property rates. Olim, by contrast, get a genuinely reduced track.

1. Israeli resident — single (only) home, 2026

As clear lines: 0 – 1,978,745 ₪ → 0% · 1,978,745 – 2,347,040 ₪ → 3.5% · 2,347,040 – 6,055,070 ₪ → 5% · 6,055,070 – 20,183,565 ₪ → 8% · above 20,183,565 ₪ → 10%.

2. Investor / additional property — and foreign (non-resident) buyers

As clear lines: 0 – 6,055,070 ₪ → 8% · above 6,055,070 ₪ → 10%. A non-resident foreign buyer pays this table — 8% from the first shekel, no tax-free band. (Identical to an Israeli buying a second/third home.)

3. Oleh Chadash who made Aliyah AFTER 15 Aug 2024 — single residential home

As clear lines: 0 – 1,978,745 ₪ → 0% (exempt) · 1,978,745 – 6,055,070 ₪ → 0.5% · 6,055,070 – 20,183,565 ₪ → 8%. The 2024 reform substantially improved the Oleh track (for a single home).

4. Oleh Chadash who made Aliyah BEFORE 15 Aug 2024

As clear lines: 0 – 1,988,090 ₪ → 0.5% · above 1,988,090 ₪ → 5%. The Oleh benefit applies to a purchase from 1 year before to 7 years after Aliyah (one home, one business premises; conditions apply).

The number that matters: how much does being an Oleh save?

Take a ₪2,500,000 apartment. The same flat, four different buyers:

On this purchase, a post-2024 Oleh pays ≈ ₪197,000 less than a foreign buyer — on the identical property. That is the single biggest reason the timing of your Aliyah relative to your purchase matters: buying as an Oleh, not as a non-resident, can change your tax bill by six figures. (Exact saving depends on price and your eligibility — run your own numbers below.)

Run your exact number

Israelos has a free, 2026-updated mas rechisha calculator — pick your buyer status (resident / investor / foreign / Oleh) and price, and get your real figure in seconds:
→ israelos.com/mas-rechisha-calculator (also in HE, FR, RU, ES, TR)

Before you buy — the practical takeaways

• If Aliyah is on your horizon, the order of operations is money. Making Aliyah before you purchase can move you from the 8% foreign table to the 0.5% Oleh track. Get advice on timing first.
• Purchase tax is generally payable within 60 days of signing.
• These bands are normally indexed annually but are currently frozen through 15 Jan 2028 (the figures here are the 2026 values per the Tax Authority's directive 1/2026). Always confirm the current numbers and your eligibility with a lawyer.

Sources & disclaimer

Sources: Israel Tax Authority purchase-tax directive 1/2026 (updated thresholds); kol-zchut "Oleh purchase-tax discount"; §9 Real Estate Taxation Law. Figures 2026, indexed. Market information only — not legal/tax advice; verify your case with a qualified Israeli real-estate lawyer + home-country accountant.