Purchase Tax 2026 – Brackets, Exemptions, and Full Calculation

Purchase tax is a tax imposed on the buyer of real estate in Israel, paid to the tax authority. In 2026, updates were made to the tax brackets that are important to know before any transaction.

Purchase Tax Brackets for First Apartment (2026)

For first-time apartment buyers, there is a full exemption up to a threshold of approximately 1,978,745 ₪. Above this amount, a graduated tax applies:

• Up to 1,978,745 ₪ – 0%
• 1,978,745 to 2,347,040 ₪ – 3.5%
• 2,347,040 to 6,055,070 ₪ – 5%
• Above 6,055,070 ₪ – 10%

Purchase Tax Brackets for Second Apartment and Above

When the buyer already owns another apartment, the exemption threshold does not exist, and the purchase tax starts at 8% on the entire amount up to 5,348,565 ₪, and 10% on the remainder above.

Who is Exempt from Purchase Tax?

Disabled individuals, new immigrants, and certain eligible persons enjoy unique discounts. It is recommended to check eligibility with a real estate attorney before signing.

Practical Tip

Before purchasing a property in Jerusalem, Tel Aviv, or high-demand areas, calculate the expected purchase tax. We recommend viewing our properties in Jerusalem and Tel Aviv and consulting with our brokers before making a decision.