Israel Vehicle Import Tax (Mas Knisa) 2027 Calculator

Mas Knisa on the Green Scale

Israel taxes vehicle purchases (including imports) on a green emissions scale. ICE vehicles face roughly 83% Mas Knisa, hybrids 40%, plug-in hybrids 25%, and full EVs 20% for 2026-27. The percentage applies to CIF (cost + insurance + freight) value. Used vehicles over 2 years old face a 10% surcharge to discourage older-tech imports.

Green/EV Deductions

To encourage low-emission vehicles, Mas Knisa is reduced by a fixed deduction: NIS 8,000 for hybrids, NIS 17,500 for PHEVs and EVs (2026-27 rates). This deduction is applied AFTER the gross Mas Knisa is computed, capping the effective tax for cleaner vehicles. The EV-specific scheme is reviewed annually and may step down as adoption grows.

VAT and Total Landed Cost

Standard VAT (18% for 2026-27) applies to CIF plus Mas Knisa — meaning VAT is charged on the tax-inflated value, compounding the burden. A USD 25,000 FOB vehicle commonly lands in Israel at NIS 130,000-160,000 after all taxes for an ICE car. EVs of comparable FOB land at NIS 95,000-115,000 because of the lower Mas Knisa and EV deduction.

Private Imports vs Dealer Channel

Israel has a "personal import" path for individuals importing one vehicle every 2 years — same tax treatment but you handle the licensing and inspection yourself. Dealer-imported vehicles (Yivuan Mosharkim) include warranty, parts, and service infrastructure. Personal imports save the dealer margin (~10-15%) but require you to budget for inspection (mishari), licensing, and potential parts-sourcing difficulty.

Sources: taxes.gov.il vehicle import 2026-27, customs.gov.il import duty. Last updated: May 2026.