Single Apartment vs. Second Apartment 2026 – Comparing Purchase Tax for Investors
The difference in purchase tax between buying a "single apartment" and purchasing a second apartment is one of the largest financial gaps in real estate transactions in Israel — and often investors do not take it into account until they see the assessment. Here is a complete comparison for 2026.
Tax Brackets at a Glance
| Bracket | Single Apartment | Second Apartment and Above |
|---|---|---|
| Up to 1,978,745 ₪ | 0% | 8% |
| 1,978,745–2,347,040 ₪ | 3.5% | 8% |
| 2,347,040–6,055,070 ₪ | 5% | 8% |
| 6,055,070–20,183,565 ₪ | 8% | 10% |
| Above 20,183,565 ₪ | 10% | 10% |
The main difference: a second apartment pays 8% from the first shekel, without any exemption — while a single apartment enjoys a full exemption up to nearly 2 million ₪.
Comparison of Real Cases
| Apartment Value | Purchase Tax (Single Apartment) | Purchase Tax (Second Apartment) | Gap |
|---|---|---|---|
| 1,800,000 ₪ | 0 ₪ | 144,000 ₪ | 144,000 ₪ |
| 2,000,000 ₪ | ~744 ₪ | 160,000 ₪ | ~159,256 ₪ |
| 2,500,000 ₪ | ~20,538 ₪ | 200,000 ₪ | ~179,462 ₪ |
| 3,500,000 ₪ | ~70,538 ₪ | 280,000 ₪ | ~209,462 ₪ |
For an investor purchasing an apartment in Ma'ale Adumim around the average price in the area (about 1,925,000 ₪), the gap can reach about 150,000 ₪ or more — sometimes an amount that changes the entire investment's feasibility.
"Alternative Apartment" — The Solution for Those Switching Apartments
Those buying a new apartment before selling their old one (for example, to avoid being without a roof over their head between transactions) do not necessarily fall into the "second apartment" brackets permanently: there is an "alternative apartment" route that allows purchasing under the purchase tax conditions of a single apartment, provided that the old apartment is sold within 18-24 months (according to current conditions). If the sale does not occur on time — the tax is recalculated retroactively according to the second apartment brackets, plus interest and linkage.
When Is It Still Worth Buying an Official "Second Apartment"?
- Investors who do not plan to sell the first apartment at all — the plan to "wait" for the sale is irrelevant, and it is better to plan the tax in advance as part of the expected return.
- Those purchasing a property of high value (above 6,055,070 ₪) — where the relative gap between the brackets is smaller, as a single apartment already pays 8%-10% in the higher brackets.
Related: Additional Tax Upon Sale
If the second apartment is eventually sold at a profit, it is advisable to also be aware of the possible additional tax on the sale of a second apartment — the complete picture of second apartment taxation includes both purchase and sale.
Considering Purchasing a Second Apartment in Ma'ale Adumim or Jerusalem?
Before deciding, it is advisable to calculate the expected purchase tax as part of the overall return on the investment. Check out properties in Ma'ale Adumim and Jerusalem, and contact the Merkaz HaNekhasim team for an accurate check of the "alternative apartment" option before you set your purchasing strategy.