Every year, in mid-January, the Israel Tax Authority publishes new thresholds for Mas Rechisha (Purchase Tax) according to the previous year’s Central Bureau of Statistics Home Price Index. Recently, the thresholds for new immigrants were revised to encourage Aliyah.
The Mas Rechisha or Purchase Tax thresholds are updated annually, in mid-January, with consideration for the Home Prices Index of the previous year (published by the Central Bureau of Statistics). Since the thresholds are generally raised slightly each year, this translates into lower taxes for home buyers. For example, last year, a first-time buyer residing in Israel paid no tax up to NIS 1,919,155 of the purchase price; in 2024, he is exempt on the first NIS 1,978,745. For this buyer, the Purchase Tax due on a 3 million shekel apartment is now NIS 45,538 as opposed to NIS 48,684 according to the previous thresholds. For investors and foreign buyers, there is no purchase tax exemption on any portion of the purchase price. Buyers pay 8% on the first NIS 6,055,070 of the price, above which the tax is 10%.
Use the Buyitinisrael “Mas Rechisha Purchase Tax Calculator”
As of 15/08/2024, the new levels are as follows*:
Single Residential Home
Applicable when the property purchased is the only residential property owned in Israel.
| Up to NIS 1,978,745 of the purchase price | 0% |
| NIS 1,978,745 – NIS 2,347,040 of the purchase price | 3.5% |
| NIS 2,347,040 – NIS 5,872,725 of the purchase price | 5% |
| NIS 6,055,070 – NIS 20,183,565 of the purchase price | 8% |
| NIS 20,183,565 and above | 10% |
Additional Residential Home
Applicable when the individual owns more than one residential property in Israel. [Foreign residents pay Mas Rechisha at the same rate as Israeli residents who own more than one home in Israel.]
| Up to NIS 6,055,070 of the purchase price | 8% |
| NIS 6,055,070 and above | 10% |
Olim (Immigrants)
On a sole residence purchased on or after August 15, 2024, where the purchase price is less than 20 million shekels:
| Up to NIS 1,978,745 of the purchase price | 0% |
| NIS 1,978,745 – NIS 6,055,070 of the purchase price | 0.5% |
| NIS 6,055,070 – NIS 20,000 of the purchase price | 8% |
| Purchases above NIS 20,183,565 | N/A |
Olim, who made Aliyah before August 15, 2024, may select the “old” rate if the property purchased will be the place of residence, even if not the sole residence:
| Up to NIS 1,988,090 of the purchase price | 0.5% |
| NIS 1,988,090 and above | 5% |
The discounted rate for Olim applies to one residential property purchased within the first seven years of making Aliyah, or up to 12 months before.
*Rates applicable from 15/08/2024 until 15/01/2025.
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