Israel Purchase Tax (Mas Rechisha) Brackets for 2026 — Full Guide
In 2026, buyers of a single home in Israel pay no purchase tax (Mas Rechisha) up to NIS 1,978,745, with brackets of 3.5%–10% above that. Buyers of an additional home pay 8% from the first shekel. The brackets are frozen by law until January 2028 — and new immigrants (Olim) have a dedicated benefit track that can save tens of thousands of shekels. Here are the full tables and examples.
What is Mas Rechisha and who pays it?
Purchase tax (Mas Rechisha) is a one-time tax paid by the buyer when acquiring real estate rights in Israel — an apartment, house, plot, or shop. The rate depends on the transaction value and the buyer's status: single home, additional home, or a special track such as the Oleh Chadash benefit. The transaction must be reported to the Israel Tax Authority within 30 days of signing.
2026 brackets — single home (Israeli resident)
| Portion of the price | Tax rate |
|---|---|
| Up to NIS 1,978,745 | 0% — fully exempt |
| NIS 1,978,745 – 2,347,040 | 3.5% |
| NIS 2,347,040 – 6,055,070 | 5% |
| NIS 6,055,070 – 20,183,565 | 8% |
| Above NIS 20,183,565 | 10% |
Additional home (second home and beyond)
A buyer who already owns a home pays 8% from the first shekel on an additional home, under a temporary order in force until the end of 2026, rising to 10% above the top bracket. These rates also apply to foreign residents and companies. On a NIS 2,000,000 apartment the difference is stark: NIS 744 as a single home versus NIS 160,000 as an additional home.
The bracket freeze until 2028
The single-home brackets are frozen by law until 15.1.2028 and will not be adjusted for inflation until then. As housing prices rise while the exemption ceiling stays fixed, more buyers cross into taxable territory each year — a real consideration when timing a purchase.
Special tracks: Olim, disabled buyers, home upgraders
- New immigrants (Olim) — since August 2024, Regulation 12A grants a single home full exemption up to the first bracket and only 0.5% on the portion above it (up to about NIS 6 million). Read our full guide to purchase tax for Olim.
- Disabled buyers — a reduced 0.5% rate under Regulation 11, twice in a lifetime, subject to conditions.
- Home upgraders — buying a new home before selling the old one still counts as a "single home" if the old home is sold within 24 months (permanent rule since 1.6.2025).
Reporting, payment, and the lawyer's role
The transaction report is filed within 30 days and the tax paid within 60 days. Choosing the wrong track — for example, an Oleh who has a choice between two benefit regulations — can cost tens of thousands of shekels. Tax calculation and benefit eligibility are part of proper legal representation in the deal. As an Amharic-speaking real estate lawyer, Adv. David Abebe guides clients through the process in Hebrew, Amharic, or English.
Frequently Asked Questions
How much purchase tax on a first home of NIS 2 million in 2026?
About NIS 744. The first NIS 1,978,745 is exempt, and 3.5% applies to the remainder.
Can I use the Oleh benefit if I buy before making Aliyah?
Yes — the Oleh purchase-tax benefit can apply to a purchase made up to one year before Aliyah and up to seven years after it, subject to the track's conditions.
Do foreign residents get the single-home brackets?
No. Foreign residents pay the additional-home rates (8% from the first shekel), even for their only property in Israel.
When is the tax reported and paid?
Reported to the Tax Authority within 30 days of signing; paid within 60 days.
This article provides general information only and does not constitute legal advice or a substitute for individual legal counsel. Laws, figures, and procedures may change.