Capital Gains Tax 2026 – Exemption, Calculation, and Who is Exempt

Capital Gains Tax is a tax imposed on the profit made by the seller of a real estate asset, calculated as the difference between the sale price and the purchase price, minus deductible expenses.

When is an Exemption from Capital Gains Tax Available?

Anyone selling a qualifying residential property – that is, a property that has been solely owned and used for residence – is entitled to an exemption from Capital Gains Tax once every 18 months. In 2026, a full exemption can be obtained provided the seller does not own another property.

Capital Gains Tax Rates for Non-Exempt Properties

• Properties purchased before 2014: Preferred linear rate of 25% on the portion of the profit accrued after January 2014
• Properties purchased after 2014: 25% on the entire real gain
• Individuals over 60: May benefit from a reduction under certain conditions

Deductible Expenses in Capital Gains Tax Calculation

Attorney fees, brokerage fees, renovation expenses, and the consumer price index – all can be deducted and reduce the tax base.

Important to Know

Proper sale planning can save tens of thousands of shekels. Check properties for sale in Haifa and in Netanya and consult with our tax experts.