Mas Rechisha: A Simple Guide to Israel's Purchase Tax

Mas rechisha is the purchase tax a buyer pays when they buy property in Israel. For an apartment, how much you pay depends on two things: the price, and whether it's your only apartment. Work out your own number with our free Israel purchase tax calculator.

It's worked out in brackets

The tax is charged in steps, like income tax. Each part of the price is taxed at its own rate, and you add the parts up. The calculator shows every bracket and the tax on each one.

Your only apartment (dira yechida). The first part of the price is tax free. Above that the rates go up in steps: 3.5%, 5%, 8% and 10% for the most expensive homes.

An additional apartment (dira nosefet). If you already own an apartment, the rate is 8% from the bottom of the price and rises to 10% on the top part.

The brackets are updated by the Israel Tax Authority. Our calculator shows the table it uses, so you can check it against the Tax Authority's site.

Who counts as a "single apartment" buyer?

In general, a buyer who will own only one residential apartment after the purchase. There are special cases, for example when you sell your previous apartment within a set time after buying the new one. Ask the lawyer handling the deal before you sign.

New immigrants (olim)

Olim may be entitled to reduced purchase tax for a period around their aliyah. Our calculator doesn't include this benefit, so check your eligibility with your lawyer or the Tax Authority.

When is it paid?

The purchase is reported to the Tax Authority, usually by the buyer's lawyer, soon after signing, and the tax is paid within the deadline the Tax Authority sets. Late payment adds interest and linkage, so plan for it in your budget from the start, alongside the down payment, the lawyer and the agent's fee.

For real estate offices

Buyers ask about purchase tax at the first viewing. Send them the calculator, and keep each buyer, their budget and the next step on one leads board.