Question 1

How much purchase tax do you pay on a first home in Israel?

Accepted Answer

On a first home: 0% on the portion up to ₪1,978,745. 3.5% on the portion between ₪1,978,745 and ₪2,347,040. 5% on the portion between ₪2,347,040 and ₪6,055,070. 10% on amounts above ₪6,055,070. (2024 brackets — updated annually)

Question 2

How much purchase tax on a second/investment property?

Accepted Answer

On an additional investment property: 8% from the first shekel up to ₪5,525,070, and 10% above that. No exemption like a first home.

Question 3

When is purchase tax paid?

Accepted Answer

Purchase tax is paid within 60 days of signing the purchase agreement. Failure to pay on time may result in penalties.

Question 4

What is the difference between purchase tax and capital gains tax?

Accepted Answer

Purchase tax (Mas Rechisha) is paid by the buyer when acquiring the property. Capital gains tax (Mas Shevach) is paid by the seller on the profit from the sale (25% of the real profit). Two separate taxes in the same transaction.

Purchase Tax Calculator

Purchase Details

Bracket Breakdown

2024 Purchase Tax Brackets

🏠 First Apartment (Partial Exemption)

🏗️ Additional Property / Investor

📍 Relevant Stages in the Journey

Up to (₪)	Tax Rate
1,978,745	0%
2,347,040	3.5%
6,055,070	5%
Above	10%

Up to (₪)	Tax Rate
5,525,070	8%
Above	10%