Israel Mas Rehisha Property Purchase Tax 2026
Calculate Israel Mas Rehisha (Purchase Tax, מס רכישה) for residential property 2026. Three tiers: first home (favorable progressive brackets up to ILS 6.05M), additional homes / investors (5%+ flat from first shekel), foreign residents (8%+ from first shekel). Indexed thresholds set by Israel Tax Authority.
First Home Buyer Brackets 2026
Single residential property (yechida yechida) for Israeli resident — progressive purchase tax: 0% up to ILS 1,978,745; 3.5% on ILS 1,978,745–2,347,040; 5% on ILS 2,347,040–6,055,070; 8% on ILS 6,055,070–20,183,565; 10% above. Available only when buyer (and spouse) own no other residential property in Israel at time of purchase. 18-month grace period to sell previous home if upgrading.
Investor / Second Home Tax
If buyer (or spouse) already owns residential property: flat 8% on first ILS 6,055,070; 10% above. Includes properties held abroad in some cases — verify with Tax Authority. Significantly higher than first-home rates. Designed to cool investor demand. Verify current 'mas hatslama' (extra purchase tax on investment properties) rules — has changed multiple times.
Foreign Resident Tax
Foreign (non-Israeli-resident) buyer pays: 5% on first ILS 6,055,070; 10% above. Higher than Israeli first-home rates but lower than investor (Israeli already-owning) rates. 'Foreign resident' = not Israeli tax resident for 24+ months before purchase. Documentation must be lodged with Tax Authority within 30 days of contract signing.
Olim and Special Exemptions
New immigrants (olim chadashim) within 7 years of aliyah qualify for reduced rates: 0.5% on first ILS 1,978,745; 5% above (combined with regular bracket structure). Returning residents may qualify under certain conditions. Disabled persons (nichut 50%+), bereaved families, and IDF wounded may receive partial exemption. Apply via NII confirmation + Tax Authority Form 7000.
Sources: Israel Tax Authority (rasha.mof.gov.il), Land Taxation Law 5723-1963, Annual Tax Authority Brackets. Last updated: May 2026.
Frequently Asked Questions
What is Mas Rehisha?
Israel's property purchase tax — paid by the buyer at closing. Rates vary by buyer status: first home (favorable progressive), investor (8%+), foreign resident (5%+), new immigrant (oleh, favorable). Filed with Israel Tax Authority within 30 days of contract.
What qualifies as 'first home' in 2026?
Israeli resident buyer (and spouse) own no other residential property in Israel at time of purchase. If upgrading: 18-month grace period to sell previous home and retain first-home rates. Properties held abroad usually don't disqualify but verify.
How much is Mas Rehisha for investors?
Flat 8% on first ILS 6,055,070, 10% above. Significantly higher than first-home rates. Designed to cool investor demand. Verify current rules — Israel has revised investor tax multiple times in recent years.
Do foreign residents pay more?
Yes — 5% on first ILS 6,055,070, 10% above. Higher than Israeli first-home rates but lower than Israeli investor rates. 'Foreign resident' = not Israeli tax resident for 24+ months pre-purchase. File status documentation within 30 days of contract.
Do new immigrants get a discount?
Yes — olim chadashim within 7 years of aliyah: 0.5% on first ILS 1,978,745, then 5% above. Significant savings on first home for new immigrants. Apply through Israel Tax Authority Form 7000 + Aliyah confirmation.