Every year, during the month of January, Israel Tax Authority publishes new thresholds for Mas Rechisha (Purchase Tax in Israel) according to the Central Bureau of Statistics Home Prices Index for the previous year.
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. So, for example, where last year a first-time buyer, residing in Israel, paid no tax up to NIS 1,805,545 of the purchase price, in 2023 he is exempt on the first NIS 1,919,155. For this buyer, the Purchase Tax due on a 3 million shekel apartment is now NIS 48,684 as opposed to NIS 54,682 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 5,872,725 of the price, above which the tax is 10%.
Click here to use our Mas Rechisha Purchase Tax Calculator in English.
As of 16/01/2023, 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 1,919,155 of the purchase price | 0% |
| NIS 1,919,155 – NIS 2,276,360 of the purchase price | 3.5% |
| NIS 2,276,360 – NIS 5,872,725 of the purchase price | 5% |
| NIS 5,872,725 – NIS 19,575,755 of the purchase price | 8% |
| NIS 19,575,755 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 5,872,725 of the purchase price | 8% |
| NIS 5,872,725 and above | 10% |
New Olim
Applicable to one residential property purchased by new Olim within the first seven years of making Aliya.
| Up to NIS 1,928,220 of the purchase price | 0.5% |
| NIS 1,928,220 and above | 5% |
*Rates applicable from 16/01/2023 until 15/01/2024.
