Purchase Tax (Mas Rechisha) in 2026
What a foreign resident, an Israeli resident and an oleh pay on a Sde Dov contract in 2026, which Tax Authority table each figure comes from, and when the investor rate may change.
The short answer for foreign buyers
A foreign resident buying an apartment in Israel in 2026 pays purchase tax of 8 percent on the first ₪6,055,070 of the price and 10 percent on everything above it, from the first shekel, with no exempt band. That is the same schedule an Israeli pays on an additional home, and at Sde Dov prices it means a tax bill from about ₪300,000 on a ₪3.75M two-room apartment to about ₪979,000 on an ₪11M one.
Mas rechisha (מס רכישה, purchase tax) is paid by the buyer to the Israel Tax Authority on the price in the contract. 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 a foreign citizen whose life is centred in Israel can be a resident.
The 8 and 10 percent 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 percent.
This page is general information, not tax advice. Your Israeli lawyer or tax adviser computes the figure on the contract you actually sign.
Foreign residents and additional homes, 2026
The investor schedule has two bands. The ₪6,055,070 threshold was set on 16 January 2024 and frozen by the 2025 Arrangements Law, so it did not move on 16 January 2025 or on 16 January 2026. The Tax Authority's Real Estate Taxation Execution Instruction 1/2026, published on 18 January 2026, restates it for purchases up to 31 December 2026.
Foreign residents pay this schedule even on their only apartment anywhere, 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. The law counts as an Israeli resident someone who, within two years of the purchase, becomes an Israeli resident for the first time or a veteran returning resident. If that happens 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.
| Part of the price | Rate |
|---|---|
| Up to ₪6,055,070 | 8% |
| Above ₪6,055,070 | 10% |
What it costs at Sde Dov prices
Sde Dov prices put almost every buyer above the first bracket of every schedule, so the gap between schedules is large. The table uses prices published for the district: DIMRI YAMA's launch floor for a two-room apartment (December 2025), a 90 sqm three-room apartment at FIRST listed at about ₪6.8M, or about ₪5.8M under an option with accelerated payments (Calcalist, December 2025), SEVEN SEAS's average of about ₪8.7M per home (March 2026) and RAINBOW's average closed deal of ₪11M (second quarter of 2025).
Take the FIRST apartment at its list price. A foreign resident pays 8 percent of ₪6,055,070 (₪484,406) plus 10 percent of the ₪744,930 above it (₪74,493): about ₪558,899. An Israeli resident buying a sole home pays about ₪257,886, and a qualifying oleh about ₪79,976. On the same apartment the foreign buyer's bill is more than twice the resident's and about seven times the oleh's.
The tax follows the price in the contract. Calcalist reported in December 2025 that FIRST buyers who signed option agreements with a lower accelerated-payment price were told to report and pay tax on the list price, and to amend the report once the discount applied, a difference of about ₪100,000 in tax on that apartment. The company said its reporting was proper. Ask your lawyer which price goes on the declaration before you sign.
| Price used | Foreign resident or additional home | Israeli resident, sole home | Oleh, sole home (reg. 12A) |
|---|---|---|---|
| DIMRI YAMA 2-room launch floor, ₪3,750,000 | ₪300,000 | ₪83,038 | ₪8,856 |
| FIRST 3-room, option price, ₪5,800,000 | ₪464,000 | ₪185,538 | ₪19,106 |
| FIRST 3-room, list price, ₪6,800,000 | ₪558,899 | ₪257,886 | ₪79,976 |
| SEVEN SEAS average, ₪8,700,000 | ₪748,899 | ₪409,886 | ₪231,976 |
| RAINBOW average deal, ₪11,000,000 | ₪978,899 | ₪593,886 | ₪415,976 |
Israeli resident buying a sole home
An Israeli resident buying their only apartment in Israel pays on the sole-residence schedule in section 9(c1c)(3) of the Land Taxation Law. The Tax Authority's purchase-tax simulator page, last updated on 3 August 2026, states that these brackets apply to purchases from 16 January 2025 to 15 January 2028. The 2025 Arrangements Law froze the annual index update for 2025 to 2027, so the figures are the ones first published on 16 January 2024.
Even this schedule reaches 8 percent above ₪6,055,070, so a resident on a large Sde Dov contract still pays a substantial sum, though far less than a foreign resident on the same price.
| 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% |
Olim: regulation 12A
An oleh (עולה, new immigrant) buying a sole apartment can use regulation 12A of the purchase-tax regulations, in force since 15 August 2024: nothing up to ₪1,978,745, 0.5 percent up to ₪6,055,070, and 8 percent from there up to ₪20,183,565. If the apartment is worth more than ₪20,183,565 the relief does not apply at all, and the whole price is taxed on the ordinary schedule for the buyer's status. The Tax Authority lists these amounts for purchases from 16 January 2025 to 15 January 2028.
The relief can be used once, on a purchase made from one year before aliyah to seven years after it. For an apartment bought from a developer, the construction period is not counted, provided no more than three years pass between the purchase and the oleh's first entry to Israel. Olim who arrived before 15 August 2024 may choose the old regulation 12 instead (0.5 percent up to ₪1,988,090 and 5 percent above), but a purchase already made under the old rule cannot be moved to the new one. The claim is made on Form 2973, signed before a lawyer or a Tax Authority official, with an extract from the population registry.
Sources differ on one point. Kol Zchut describes the apartment as one the oleh will live in, while practitioners writing since the change say regulation 12A requires only that it be the oleh's sole apartment. If you do not plan to live in it, get a written opinion before you rely on the relief.
| 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% |
| Apartment worth more than ₪20,183,565 | No relief; ordinary schedule on the whole price |
Filing and paying after you sign
The date of sale is 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. Deadlines run from that date, so a reservation that commits you can start the clock.
Within 30 days your lawyer files the declaration online, for a purchase from a developer on Form 7000/B (טופס 7000ב), with a self-assessment. The tax on that 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. Late filing costs ₪310 for every two weeks of delay in 2026, and late payment carries linkage and interest.
On an off-plan purchase the tax is assessed on the full contract price even though you have paid only a slice of it. Ask your lawyer how any later change to the price, such as a discount under an option or a paid upgrade, has to be reported.
| Step | Rule |
|---|---|
| Date of sale | Contract signing, or an earlier binding memorandum, irrevocable power of attorney or first payment |
| Declaration | Within 30 days of the sale; Form 7000/B for a purchase from a developer; filed online |
| Tax on the self-assessment | Within 60 days of the sale |
| Higher assessment by the Tax Authority | Difference due within 30 days of the notice |
| Late declaration | ₪310 for every two weeks (amount from 16 January 2026) |
| Oleh relief | Form 2973, signed before a lawyer or a Tax Authority official |
| Foreign resident who becomes resident within two years | Apply for an amended assessment and a refund |
Which update the brackets carry
Every bracket on this page was checked on 28 September 2026 against the Tax Authority's own publications. The governing document is Real Estate Taxation Execution Instruction 1/2026 (הוראת ביצוע מיסוי מקרקעין 1/2026), dated 18 January 2026, which restates the frozen amounts and updates the few that were not frozen. The Tax Authority's purchase-tax simulator page on gov.il, last updated on 3 August 2026, shows the same sole-residence brackets for 16 January 2025 to 15 January 2028.
Two dates to watch. The investor schedule, which foreign residents pay, is a temporary order listed as in force to 31 December 2026 and, according to Globes, extended by law to February 2027 because of the election; if your contract will be signed around then, check for a new instruction or law first. The sole-residence and oleh brackets are frozen until 15 January 2028.
Where each of these comes from
Israel Tax Authority, Real Estate Taxation Execution Instruction 1/2026: 2026 amounts, frozen brackets for sole homes, additional homes and olim, the ₪310 fine: https://www.gov.il/he/pages/inst-01-2026 (18 January 2026)
Israel Tax Authority, Execution Instruction 1/2025: the freeze under the 2025 Arrangements Law and the additional-home temporary order to 31 December 2026: https://www.gov.il/BlobFolder/policy/inst-01-2025-3/he/realestate_inst-01-2025-3.pdf (16 January 2025)
Israel Tax Authority, purchase-tax simulator page with the sole-residence brackets for 16 January 2025 to 15 January 2028: https://www.gov.il/he/service/real_eatate_taxsimulator (page updated 3 August 2026)
Israel Tax Authority, Form 7000 declaration service: declaration within 30 days of the sale: https://www.gov.il/he/service/real-estate-tax-7000 (checked 28 September 2026)
Kol Zchut, paying purchase tax: 60 days on the self-assessment, 30 days on a higher assessment: https://www.kolzchut.org.il/he/%D7%AA%D7%A9%D7%9C%D7%95%D7%9D_%D7%9E%D7%A1_%D7%A8%D7%9B%D7%99%D7%A9%D7%94 (checked 28 September 2026)
Kol Zchut, calculating purchase tax: wartime extension of the residency window: https://www.kolzchut.org.il/he/%D7%97%D7%99%D7%A9%D7%95%D7%91_%D7%9E%D7%A1_%D7%A8%D7%9B%D7%99%D7%A9%D7%94 (checked 28 September 2026)
Land Taxation Law on Nevo, section 9(c1c)(4)(b): an Israeli resident includes someone who becomes one within two years of the purchase: https://www.nevo.co.il/law_html/law01/276_002.htm (checked 28 September 2026)
Israel Tax Authority press release, the new oleh relief approved: https://www.gov.il/he/pages/sa290724-1 (29 July 2024)
Knesset Finance Committee press release, the construction period for olim buying from a developer: https://main.knesset.gov.il/News/PressReleases/pages/press29072024z.aspx (29 July 2024)
Ministry of Aliyah and Integration, purchase-tax discount for olim and Form 2973: https://www.gov.il/he/pages/olim-purchase-tax-discount (page updated 30 April 2025)
Kol Zchut, purchase-tax relief for olim: https://www.kolzchut.org.il/he/%D7%94%D7%A0%D7%97%D7%94_%D7%91%D7%9E%D7%A1_%D7%A8%D7%9B%D7%99%D7%A9%D7%94_%D7%9C%D7%A2%D7%95%D7%9C%D7%99%D7%9D (checked 28 September 2026)
Adv. Yasmin Tzah, practitioner's note that regulation 12A does not require the oleh to live in the apartment: https://yasmint-law.com/purchase-tax/%D7%9E%D7%A1-%D7%A8%D7%9B%D7%99%D7%A9%D7%94-%D7%A2%D7%95%D7%9C%D7%94-%D7%97%D7%93%D7%A9 (checked 28 September 2026)
Globes, what will happen to purchase tax: expiry, extension to February 2027, 5 percent if it lapses: https://www.globes.co.il/news/article.aspx?did=1001554581 (7 September 2026)
Nadlan Center, purchase-tax guide for 2026: the date of sale and foreign residents: https://www.nadlancenter.co.il/article/628 (2026)
Ynet (Calcalist), FIRST option price, list price and the purchase-tax difference: https://www.ynet.co.il/economy/article/r1auftaq11l (28 December 2025)
Zirat HaNadlan, DIMRI YAMA two-room apartments from ₪3.75M: https://zirat-nadlan.co.il/articles/%D7%A4%D7%A8%D7%95%D7%99%D7%A7%D7%98-dimri-yama-%D7%A9%D7%93%D7%94-%D7%93%D7%91-%D7%99%D7%95%D7%A6%D7%90-%D7%9C%D7%A9%D7%99%D7%95%D7%95%D7%A7-%D7%93%D7%99%D7%A8%D7%95%D7%AA-2-%D7%97%D7%93%D7%A8 (22 December 2025)
Nadlan Center, SEVEN SEAS sales data: average about ₪8.7M per home: https://www.nadlancenter.co.il/article/14205 (25 March 2026)
Calcalist, RAINBOW's average deal reaches ₪11M: https://www.calcalist.co.il/market/article/bj9leo2fxx (27 August 2025)
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