Updated: October 2026 · e-land editorial team
Disclaimer: The information in this article is general, correct as of the update date, and does not constitute legal or tax advice. Before making decisions, you should consult an attorney who specializes in real estate taxation and check the calculation in the Tax Authority simulator.
Purchase tax (mas rechisha) is one of the largest items in the cost of buying an apartment, and the bank does not finance it – it comes out of your equity. On exactly the same apartment, one buyer will pay tens of thousands of shekels and another almost a quarter of a million. It all depends on one question: is this your only apartment?
What is purchase tax?
Purchase tax is a tax paid by the buyer on the acquisition of a right in real property (the seller pays capital gains tax (mas shevach)). It is calculated on the transaction value using brackets: each part of the price is taxed at its own rate, and the highest rate applies only to the top portion.
2026 brackets: single apartment
| Portion of the price | Tax rate |
|---|---|
| Up to ILS 1,978,745 | Exempt (0%) |
| ILS 1,978,745 – 2,347,040 | 3.5% |
| ILS 2,347,040 – 6,055,070 | 5% |
| ILS 6,055,070 – 20,183,565 | 8% |
| Above ILS 20,183,565 | 10% |
2026 brackets: additional apartment (investors)
| Portion of the price | Tax rate |
|---|---|
| Up to ILS 6,055,070 | 8% |
| Above ILS 6,055,070 | 10% |
In other words, someone who already owns an apartment pays 8% from the first shekel.
Two important notes on the tables
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The brackets are frozen. In the past they were updated every year according to the housing price index. Under the Arrangements Law the update was frozen, and the amounts remain unchanged until January 15, 2028.
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The 8% rate for investors was set by a temporary provision. Every few years the question arises as to whether it will be lowered. As of the time of writing, the expectation is that the rate will continue to apply in early 2027 as well. Those who postpone a purchase in anticipation of a tax cut are betting on a decision that has not been made.
Example: the same apartment, two buyers
An apartment for ILS 3,000,000.
Buyer of a single apartment
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Up to ILS 1,978,745: ILS 0
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ILS 368,295 at 3.5%: ILS 12,890
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ILS 652,960 at 5%: ILS 32,648
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Total: about ILS 45,538
Buyer of an additional apartment
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ILS 3,000,000 at 8%: ILS 240,000
The difference: about ILS 194,000 on the same apartment.
The calculation is for illustration. Before signing, we recommend checking the Tax Authority's purchase tax simulator.
Who is considered the "owner of a single apartment"?
This is the question that determines everything, and the answer is broader than it seems:
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The family unit counts as one buyer. Spouses and children under 18 are a single unit. An apartment in the name of one spouse affects the other.
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Up to one-third of another apartment does not negate single-apartment status.
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Up to half of an inherited apartment does not negate the status (see our guide to inheritance and real estate).
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A plot, shop or office is not a residential apartment and therefore does not negate the status.
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An apartment abroad is usually not counted, as the definition refers to apartments in Israel and the Area (the West Bank). This should be verified with an attorney in the specific case.
Upgraders: the window for selling the previous apartment
Someone who buys a new apartment before selling the old one can declare an intention to sell and pay according to the single-apartment brackets:
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Second-hand purchase: the previous apartment must be sold within 24 months of the purchase date. This is the permanent provision since June 2025, following a preceding period of 18 months.
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Purchase from a developer: the previous apartment must be sold within 12 months of the date on which the new apartment is due to be delivered under the contract.
Those who do not sell in time pay the difference up to the additional-apartment tax, plus interest and linkage differentials. In the example above, this is about ILS 194,000, added all at once. Following the security situation, extensions were granted in certain cases under a temporary provision, so check the deadline that applies to you.
Land and non-residential properties
On the purchase of land, a shop, an office or any property that is not a residential apartment, purchase tax is 6% of the value (see our guide to agricultural land).
Benefits for certain populations
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New immigrants (olim): a benefit on a purchase made between one year before immigration and seven years after it. The rates depend on the date of immigration.
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Persons with disabilities, the blind and bereaved families: a reduced rate of 0.5% on the purchase of a residential apartment, subject to conditions.
The benefits are not granted automatically and must be requested with the appropriate certificates.
When to report and when to pay?
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Reporting: within 30 days of signing. Usually the buyer's attorney handles this.
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Payment: within 60 days of signing. Late payment accrues interest and linkage.
Four tips that can save money
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Check your status before signing, including small shares in family properties and apartments in your spouse's name.
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Upgraders: plan the sale of the old apartment so that it is completed within the time window, and build in a safety margin.
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Purchase of part of an apartment by a family member who has no apartment (for example an adult child) may affect the tax. This is planning that requires advice, as it has additional tax and family implications.
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A cancelled transaction: tax paid on a transaction that was genuinely cancelled can be refunded.
The bottom line
The question "is this your only apartment?" is worth hundreds of thousands of shekels. Check it thoroughly before signing, and factor purchase tax into your equity budget even before you start looking for an apartment.
Disclaimer: The information in this article is general, correct as of the update date, and does not constitute legal or tax advice. Before making decisions, you should consult an attorney who specializes in real estate taxation and check the calculation in the Tax Authority simulator.
Sources
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Bizportal, "Purchase tax 2026: single apartment brackets vs. additional apartment" (August 2026): Link (in Hebrew)
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Bizportal, "Will purchase tax rise in early 2027?": Link (in Hebrew)
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Israel Tax Authority, purchase tax simulator: Link (in Hebrew)
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Nadlan Center, on 6% purchase tax on land: Link (in Hebrew)
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Real Estate Taxation (Appreciation and Purchase) Law, 5723-1963, Section 9
