Purchase tax brackets for 2026
Following the Arrangements Law, the purchase tax brackets were frozen and will not be index-linked until 15.1.2028. Buyers of an only home benefit from five progressive brackets, while buyers of an additional (investment) home pay under two brackets only:
- Only home: fully exempt up to ₪1,978,745
- Only home: 3.5% on the portion between ₪1,978,745 and ₪2,347,040
- Only home: 5% on the portion between ₪2,347,040 and ₪6,055,070
- Only home: 8% between ₪6,055,070 and ₪20,183,565, and 10% above
- Additional home: 8% up to ₪6,055,070 and 10% on the portion above
Who qualifies as an only-home buyer?
The definition is broader than it seems: owning less than a third of another apartment (or less than half of an inherited one) may not disqualify you, and buyers who commit to selling their existing home within the statutory period can also qualify for the only-home brackets. Foreign residents are not eligible for the only-home brackets.
Reliefs and exemptions worth knowing
The law grants purchase tax reliefs to several groups, including new immigrants (olim), persons with disabilities and bereaved families. Special rules may also apply to purchases from developers, gifts between relatives and other complex transactions. Careful structuring and timing of the transaction can significantly affect the tax liability.
Frequently Asked Questions
How much purchase tax do I pay on a first home in Israel in 2026?
Only-home buyers are exempt up to ₪1,978,745. Above that, progressive brackets apply: 3.5% up to ₪2,347,040, 5% up to ₪6,055,070, 8% up to ₪20,183,565 and 10% above.
How much purchase tax applies to a second or investment home?
An additional home is taxed at 8% on the portion of the value up to ₪6,055,070 and 10% on the portion above it.
When is purchase tax paid?
A declaration must be filed with the Land Taxation Authority within 30 days of the transaction, and the tax is paid using the voucher issued afterwards. Late reporting or payment can result in fines, linkage differentials and interest.
Does the calculator replace legal advice?
No. It provides an initial estimate under the general brackets only. Exemptions, reliefs, purchases from developers, gifts between relatives or additional property holdings may change the result, so every transaction should be reviewed individually.
The calculators provide a general estimate only, based on the details entered, and do not constitute legal or tax advice. An exact calculation depends on the specific circumstances, exemptions and possible reliefs.