Every year, during January, the Israel Tax Authority publishes new thresholds for Mas Rechisha (Purchase Tax) according to the Central Bureau of Statistics Home Price Index for the previous year.
The Mas Rechisha or Purchase Tax thresholds are updated annually, in mid-January, with consideration for the Home Prices Index of the previous year (published by the Central Bureau of Statistics). Since the thresholds are generally raised slightly each year, this translates into lower taxes for home buyers. So, for example, where last year a first-time buyer, residing in Israel, paid no tax up to NIS 1,919,155 of the purchase price, in 2024 he is exempt on the first NIS 1,978,745. For this buyer, the Purchase Tax due on a 3 million shekel apartment is now NIS 45,538 as opposed to NIS 48,684 according to the previous thresholds. For investors and foreign buyers, there is no purchase tax exemption on any portion of the purchase price. Buyers pay 8% on the first NIS 6,055,070 of the price, above which the tax is 10%.
Click here to use our Mas Rechisha Purchase Tax Calculator in English.
As of 16/01/2024, the new levels are as follows*:
Single Residential Home
Applicable when the property purchased is the only residential property owned in Israel.
| Up to NIS 1,978,745 of the purchase price | 0% |
| NIS 1,978,745 – NIS 2,347,040of the purchase price | 3.5% |
| NIS 2,347,040 – NIS 5,872,725of the purchase price | 5% |
| NIS 6,055,070 – NIS 20,183,565 of the purchase price | 8% |
| NIS 20,183,565and above | 10% |
Additional Residential Home
Applicable when the individual owns more than oneresidential property in Israel. [Foreign residents pay Mas Rechisha at the same rate as Israeli residents who own more than one home in Israel.]
| Up to NIS 6,055,070 of the purchase price | 8% |
| NIS 6,055,070and above | 10% |
New Olim
Applicable to one residential property purchased by new Olim within the first sevenyears of making Aliya.
| Up to NIS 1,988,090 of the purchase price | 0.5% |
| NIS 1,988,090 and above | 5% |
*Rates applicable from 16/01/2024 until 15/01/2025.
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The contents of this article are designed to provide the reader with general information and not to serve as legalor other professional advice for a particular transaction. Readers are advised to obtain advice from qualifiedprofessionals prior to entering into any transaction.
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