Israel Real Estate Capital Gains Tax Calculator (Mas Shevah / Yarka)

Updated 2026-06-26 — based on Israel Tax Authority rules (Mas Shevah Mekarka'in) and the Income Tax Ordinance (New Version) Section 49b(1).

The Israel real estate capital gains tax calculator (commonly called Mas Shevah, sometimes transliterated as "Yarka") estimates the seller's tax on Israeli property disposals using 2026 rates. Inputs: sale price, original cost, year of purchase, improvements, and property type. Output: indexed cost basis, real gain after CPI indexation, exemption status, and final tax — instantly, with full breakdown.

Mas Shevah vs Yarka vs Capital Gains — Terminology

"Mas Shevah Mekarka'in" (מס שבח מקרקעין) is the Hebrew name; literal English is "real-estate appreciation tax." Some English transliterations render the word as "Yarka," "Shevah," or "Shvah" — all refer to the same tax. It's distinct from "Mas Hachnasa" (income tax) and from "Mas Rehisha" (buyer's purchase tax). Per the Israel Tax Authority, Mas Shevah is levied on the SELLER on the real (CPI-adjusted) gain from property disposal — not the nominal gain — so long-held properties benefit from decades of indexation.

Single Residence Exemption

Section 49b(1) of Income Tax Ordinance: gain from sale of sole residence is fully exempt if held 18+ months and seller did not exercise prior exemption within 18 months. Limit: sale price ₪4.5M (2026); above triggers partial exemption.

Investment Property Taxation

25% capital gains tax on REAL gain (nominal gain minus CPI-indexed cost basis). Indexation uses Israeli CPI from purchase month to sale month. Long-held properties benefit significantly from indexation as nominal gains shrink to real gains.

Reporting And Filing

File Form 7002 within 30 days of sale closing. Pre-payment of estimated tax required. Underreporting penalty + interest. Tax Authority can challenge purchase price documentation — keep purchase documents indefinitely.

Linear Method (חישוב לינארי) — When It Applies

For properties purchased before 1 January 2014 and sold afterward, Israel's tax code uses a "linear method" that splits the nominal gain into two periods: gains accrued before 2014 are taxed at the historic owner's marginal income tax rate (up to 47%); gains accrued after 1 January 2014 are taxed at 25%. The calculator above simplifies to the post-2014 25% flat rate — for pre-2014 acquisitions on a sole residence that loses the exemption, expect higher effective tax than the simplified output. The Israel Tax Authority's linear-method worksheet (טופס 7002) walks through the split for complex cases; the manual calculation overrides any simplified tool.

Estimates only — actual tax depends on the official Israel Tax Authority assessment, exemption history, joint-ownership splits, and inheritance adjustments. For sales above ₪4.5M or pre-2014 purchases requiring linear-method splits, consult a roeh cheshbon (Israeli CPA) or property lawyer. Sources: Israel Tax Authority (רשות המסים) · Kol-Zchut — Mas Shevah Guide.