Purchase Tax Calculator — How much do I pay?
What it is, who gets a discount, and a calculator to estimate what you’d owe on your purchase.
Purchase Tax (Mas Rechisha)
Purchase tax — known in Hebrew as mas rechisha, and equivalent to property transfer tax or stamp duty elsewhere — is a one-time payment made to the tax authority whenever you buy real estate, calculated as a percentage of the price. It’s always the buyer who pays it.
General rule
Purchase tax — known in Hebrew as mas rechisha, and equivalent to property transfer tax or stamp duty elsewhere — is a one-time payment made to the tax authority whenever you buy real estate, calculated as a percentage of the price. It’s always the buyer who pays it.
Olim chadashim (new immigrants)
If the property is the only one you own in Israel, you get a real discount: a full exemption on the first bracket of value, then reduced rates as the price climbs. A second property, or a purchase by a foreign resident, gets no exemption — tax applies from the first shekel, at a flat 8%. And once the price climbs high enough, generally somewhere around ₪8 million and up, an additional, higher rate kicks in above that point.
Other discounts
Registered disabled or blind residents, victims of terror, and bereaved military families also qualify for a reduced rate, usually twice in a lifetime. Land, offices, and other non-residential property fall under a different flat rate, and a foreign resident who isn’t yet an oleh is generally taxed like an additional-property buyer.
This is a general overview, not tax advice — actual eligibility depends on your specific situation. Your lawyer will be able to confirm exactly which rate applies to your purchase.