Israel property purchase-tax calculator

How purchase tax works for foreign buyers

Purchase tax — mas rechisha — is the single biggest add-on cost when you buy property in Israel, and it's the one that surprises overseas buyers the most. It is paid by the buyer, on a sliding scale, and how much you pay depends on one thing above all: whether this is your only home in Israel.

An Israeli resident buying their single home enjoys a generous tax-free band and low rates on the next slice. A foreign resident, or anyone buying an additional property, does not — they pay a higher rate from the very first shekel. That gap is often five or six figures, which is why you should model it before you fall in love with a listing.

The 2026 brackets (indicative)

These figures are indexed and updated periodically by the Israel Tax Authority. Treat them as a guide and confirm the current numbers with your lawyer.

Buyer	Rate	On the portion…
Foreign resident / additional home	8%	up to ~₪6,055,070
	10%	above ~₪6,055,070
Only home in Israel (resident / oleh)	0%	up to ~₪1,978,745
	3.5%	₪1,978,745 – ₪2,347,040
	5%	₪2,347,040 – ₪6,055,070
	8%	₪6,055,070 – ₪20,183,565
	10%	above ₪20,183,565

New immigrants (olim) can qualify for a reduced rate on a home bought within a window around their aliyah, and a buyer whose Israeli home is their only home worldwide may reach the resident band. Eligibility is specific and was reformed in recent years — check your exact case.

The other costs

• Legal fees — around 0.5% + VAT. In Israel the transaction is run by lawyers (there is no title company), and each side has its own.
• Buyer's agent — if you use one, typically 2% + VAT, negotiable.
• Appraisal (shamut) — usually required if you take a mortgage, ~₪1,500–3,000.
• Registration & miscellaneous — Land Registry (Tabu) fees and sundries.

There is no annual property tax in Israel the way there is in the US — ongoing you pay arnona (municipal tax) and, in apartment buildings, a vaad bayit maintenance fee.

Financing as a non-resident

Israeli banks lend to non-residents, but typically only up to about 50% loan-to-value (versus ~75% for a resident's first home), so plan for a large cash deposit. Model your loan, monthly payment and the income banks look for with our non-resident mortgage calculator, and see our full guide to buying property in Israel as a foreigner for the whole process, step by step. Wondering what you'll pay after the purchase — arnona, rental income tax, capital gains? That's covered in our property-taxes guide for foreign owners.

Ready to look?

Browse live homes from licensed Israeli brokers and ask questions in English on any listing: Jerusalem, Tel Aviv, Netanya, Herzliya, and Haifa. Planning to move? Read our guide for olim.

This calculator is a general orientation, not tax or legal advice. Rates are indicative for 2026 and indexed — always verify with a licensed Israeli lawyer or accountant before you commit.