How the tax is worked out
Purchase tax is paid by the buyer to the Israel Tax Authority on the price in the contract. The price is split into bands, each band is taxed at its own rate, and the tax is the sum. There are three schedules, and the buyer's status decides which one applies.
| Part of the price | Rate |
|---|---|
| Up to ₪6,055,070 | 8% |
| Above ₪6,055,070 | 10% |
| Part of the price | Rate |
|---|---|
| Up to ₪1,978,745 | 0% |
| ₪1,978,745 to ₪2,347,040 | 3.5% |
| ₪2,347,040 to ₪6,055,070 | 5% |
| ₪6,055,070 to ₪20,183,565 | 8% |
| Above ₪20,183,565 | 10% |
| Part of the price | Rate |
|---|---|
| Up to ₪1,978,745 | 0% |
| ₪1,978,745 to ₪6,055,070 | 0.5% |
| ₪6,055,070 to ₪20,183,565 | 8% |
Regulation 12A applies up to ₪20,183,565. Above that it gives no relief at all, and the whole price is taxed on the ordinary schedule.
Who counts as a foreign resident
For this tax, residency decides the schedule and citizenship does not. An Israeli passport holder whose life is centred abroad is a foreign resident, and a foreign citizen whose life is centred in Israel can be a resident.
A foreign resident pays the foreign-resident schedule even on an only apartment, because the sole-residence brackets in section 9(c1c) of the Land Taxation Law apply only to an individual Israeli resident.
There is one way back. If, within two years of the purchase, you become an Israeli resident for the first time or a veteran returning resident, you can apply for an amended assessment and a refund of the difference down to the sole-residence schedule. The refund is not automatic. Kol Zchut summarises a wartime extension of that window, to 27 months or to 31 August 2026, for purchases made between 28 February 2024 and 30 May 2026; ask your adviser which end date applies to you.
When you file and pay
- Date of sale. The day you sign the contract, or earlier if you signed a binding memorandum or an irrevocable power of attorney, or made a first payment, before the contract. Every deadline runs from this date.
- Declaration, 30 days. Within 30 days of the sale your lawyer files the declaration online, on Form 7000/B for a purchase from a developer, with a self-assessment.
- Payment, 60 days. The tax on the self-assessment is due within 60 days of the sale. If the Tax Authority's assessment is higher, the difference is due within 30 days of the notice.
- Off-plan purchases. The tax is assessed on the full contract price even though you have paid only a slice of it. Late filing carries a fine, and late payment carries linkage and interest.
- Oleh relief. Claimed on Form 2973, signed before a lawyer or a Tax Authority official. It can be used once, on a purchase made from one year before aliyah to seven years after it.
Every bracket on this page was checked against the Tax Authority's publications on 28 September 2026.
Questions about purchase tax
How much purchase tax does a foreign resident pay in Israel in 2026?
8% on the first ₪6,055,070 of the price and 10% on everything above it, from the first shekel, with no exempt band. On ₪6,800,000 the tax is ₪558,899. An Israeli resident buying a sole home would pay ₪257,886 on the same price, and a qualifying oleh ₪79,976.
Does an Israeli passport lower my purchase tax?
No. Residency decides the schedule, and citizenship does not. An Israeli passport holder whose life is centred abroad is a foreign resident for this tax and pays the foreign-resident schedule.
Do I pay less if it is my only apartment?
Not as a foreign resident. The sole-residence brackets apply only to an individual Israeli resident. If you become an Israeli resident within two years of the purchase, you can apply for an amended assessment and a refund down to the sole-residence schedule. The refund is not automatic.
What does an oleh pay under regulation 12A?
An oleh buying a sole apartment pays nothing up to ₪1,978,745, 0.5% up to ₪6,055,070, and 8% from there up to ₪20,183,565. Above ₪20,183,565 the relief does not apply at all and the whole price is taxed on the ordinary schedule. The relief can be used once, and the claim is made on Form 2973.
When is purchase tax due?
Your lawyer files the declaration within 30 days of the sale, and the tax on the self-assessment is due within 60 days of the sale. The date of sale is the day you sign the contract, or earlier if a binding memorandum, an irrevocable power of attorney or a first payment came first.
Will the foreign-resident rate change?
The 8% and 10% rates come from a temporary order that the Tax Authority lists as in force until 31 December 2026. Globes reported on 7 September 2026 that, because of the coming Knesset election, the order runs automatically until February 2027, that the next government will decide whether to extend it, and that if it lapses the first bracket for additional homes would fall to 5%. Check for a new instruction or law before you sign.
Is this calculator tax advice?
No. It is arithmetic on the published brackets, checked on 28 September 2026. The tax follows the price in the contract, so ask your Israeli lawyer or tax adviser which price goes on the declaration and what the figure is on the contract you actually sign.
Sources
Each link opens the publication the figures on this page were read from.
- Israel Tax Authority, Real Estate Taxation Execution Instruction 1/2026
- Israel Tax Authority, Execution Instruction 1/2025
- Israel Tax Authority, purchase-tax simulator page
- Israel Tax Authority, Form 7000 declaration service
- Kol Zchut, paying purchase tax
- Kol Zchut, calculating purchase tax
- Land Taxation Law on Nevo, section 9(c1c)(4)(b)
- Ministry of Aliyah and Integration, purchase-tax discount for olim and Form 2973
- Globes, what will happen to purchase tax
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