Estimate your budget, understand the rules, or prepare a detailed calculation for your lawyer.
How much tax should I budget for?
Start with your situation. A few amounts are enough for an initial estimate.
Illustration under rules checked on 31 October 2026, for an Israeli-resident individual buying a whole home. Use the detailed calculator for another date, a partial share, new-immigrant relief or special cases.
What the calculators do and how to check the result
The quick calculator gives an initial indication. A few amounts show purchase tax or a rough sale-tax estimate, followed by a plain-language explanation and possible ways to reduce tax.
The guide helps you understand your situation: an only or additional home, replacing a home, deadlines, exemptions and special cases. Read individual sections as needed.
The detailed calculator helps you prepare a transaction. Enter dates, prices and documented expenses to include indexation, compare both orders of selling two homes and apply your selected relief assumptions. Eligible pre-2014 purchases support favourable linear apportionment. Save a PDF with inputs, calculations and questions for your lawyer.
What supports the result
- Model rates and rules link to Israel Tax Authority sources; the review date is shown on the page.
- Automatic indexation uses the Israel CBS general CPI. The report identifies index months, expenses and assumptions used.
- The calculation can be traced from inputs to tax. Arithmetic, rate boundaries, dates and core scenarios have been checked; the result includes the calculation behind the final number.
Accuracy depends on your inputs and whether the model applies to your transaction. The calculator cannot verify documents or exemption eligibility. Surtax, municipal betterment levy and certain top-ups are excluded from the comparison. The PDF is a working calculation to discuss with your lawyer, not a tax return or tax opinion.
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WhatsApp will open with a prepared message. Attach your saved PDF using the paperclip or “+”, add your question and send. The PDF is not attached automatically.
Detailed transaction calculation and PDF
Open when you need a closer estimate: indexation, expenses, two homes and sale order.
Purchase tax calculator
Selecting a route does not establish eligibility. Check residency, family ownership, replacement deadlines and special conditions. Enter the whole dwelling value even when buying a share.
Values entered are processed by this calculator in your browser and are not sent by it to a server.
Sell the older home first — or the newer one?
You already own two homes and the replacement-home period has expired. Compare both sale orders at the same prices. The first sale is taxable in this model; the second can use a conditional exemption scenario.
Model: individual, 100% ownership, two ordinary residential-home purchases, no applicable replacement-home exception; sales from 2026. Pre-1 January 2014 purchases use favourable linear apportionment when the conditions below are confirmed. Gifts, inheritance, business, land bought for subsequent construction, additional building rights and complex ownership histories require a separate calculation.
After calculating, open the report and choose “Save PDF / print”. Select “Save as PDF” in your browser. Recalculate after changing inputs.
Only basic sale capital gains tax is compared. Surtax, municipal betterment levy, possible purchase-tax top-ups and other transaction costs are excluded. Changing the sale order does not refund purchase tax already paid; include any allowable deduction in expenses.
The calculator requests general CPI history from api.cbs.gov.il. Your property prices and dates are not included in that request; calculations run in your browser.
CPI · הלמ״ס ↗ · רשות המסים · 39, 47 ↗ · רשות המסים · 49ב(2) ↗ · 48א(ב2) · 5/2013 ↗ · 1/2026 ↗
Capital gains estimate
Educational estimate for an ordinary taxable private sale of residential property acquired from 2014. It does not determine exemption eligibility. Excludes gifts, inheritance, business, land, development rights and complex acquisition histories.
Rules snapshot: 31 October 2026. This is not a forecast of tax on a future sale.
Understand the rules
The guide, tax bands, exceptions and sources are here when needed.
Four different charges
Mas rechisha — מס רכישה is purchase tax on the acquired property right. Mas shevach — מס שבח taxes the seller’s taxable gain. Hetel hashbacha — היטל השבחה is a local planning betterment levy. Rental income has its own tax rules.
A capital gains exemption does not automatically remove a betterment levy. Mortgage finance, legal and agent fees, registration and moving costs belong in a separate budget. Arnona is an ongoing municipal charge, not a tax on sale profit.
Buying a sole home or an additional home
The law distinguishes a sole dwelling from additional residential property. It does not simply count how many homes you have ever bought. After selling a previous home, you may qualify again. The sole-home schedule applies to an eligible individual Israeli resident.
Bands are progressive: each rate applies only to its slice of the price. For a fractional purchase, calculate tax on the value of the whole dwelling, then multiply by the acquired share. A deposit or mortgage amount does not replace the property value.
Sole-home thresholds are frozen for 16 January 2025–15 January 2028. The verified 8%/10% additional-home schedule runs through 31 December 2026. Do not assume that schedule will continue into 2027.
Sole dwelling
| Slice of whole dwelling value | Rate |
|---|---|
| 0–1,978,745 ₪ | 0% |
| 1,978,745–2,347,040 ₪ | 3.5% |
| 2,347,040–6,055,070 ₪ | 5% |
| 6,055,070–20,183,565 ₪ | 8% |
| 20,183,565+ ₪ | 10% |
Additional dwelling
| Slice of whole dwelling value | Rate |
|---|---|
| 0–6,055,070 ₪ | 8% |
| 6,055,070+ ₪ | 10% |
What counts as a sole dwelling?
Spouses, qualifying common-law partners and minor children generally form one tax unit. Registering another home in a spouse’s name does not itself create an exemption. Genuine separate property arrangements can matter, but a document alone is not conclusive.
A share of no more than one third in another dwelling generally does not prevent sole-home purchase treatment; for an inherited share the limit is generally one half. Multiple shares and family exceptions need individual review. Citizenship is not the same as tax residency. Foreign housing and nonresident status must be considered under the particular relief being claimed.
Replacing a home: buy first or sell first?
Selling the old sole home before buying a new one can secure sole-home purchase rates. Buying the replacement first can also qualify if the former home is sold within the applicable period and the transaction is declared correctly.
For an ordinary purchase of a completed replacement home now, the base period is 24 months. Purchases from 1 June 2023 through 31 May 2025 had an 18-month base period. A contractor purchase has a special rule, generally linked to 12 months after contractual handover, with delay provisions.
Instruction 2/2026 provides emergency extensions for specific dates. For example, replacement purchases from 1 June 2025 through 30 May 2026 have a 27-month period. There is no universal deadline for every transaction. Check purchase-tax relief and sale-exemption deadlines independently.
Missing the sale condition can trigger the additional-home tax difference, interest and indexation. Temporarily owning two homes does not by itself mean losing relief.
A NIS 3 million home: three scenarios
For a resident with one existing home and no special immigrant relief: sell the old home then buy — NIS 45,538.33 purchase tax; buy then sell the old home on time — the same; retain both — NIS 240,000. The difference is NIS 194,461.68.
Tax on selling the old home is separate. It may be zero if every exemption condition is met; the new home’s price does not establish that. Selling first may involve temporary rent and an extra move. Buying first may require bridge finance and running two properties. Those costs are not included here.
Immigrant and other special relief
If entitlement under the new regulation 12א is confirmed: 0% through NIS 1,978,745; 0.5% on the next slice through NIS 6,055,070; 8% on the next slice through NIS 20,183,565. If the whole dwelling exceeds the last cap, this special schedule does not apply at all. At NIS 3 million the conditional estimate is NIS 5,106.28.
The basic window is one year before aliyah to seven years afterwards, with special counting rules and exceptions. Residential relief is generally available once. Those arriving before 15 August 2024 have transitional provisions and may have access to the old regime. An aliyah date alone does not establish eligibility. The calculator does not verify status or model the old regime.
Separate concessions exist for specified disability, injury and bereaved-family categories. Conditions, caps and permitted uses differ; there is no universal special-beneficiary rate.
Capital gains tax: which gain is taxed?
For an ordinary taxable private sale of a qualifying residential property acquired from 2014, the baseline is up to 25% of the real taxable gain. A simplified basis is sale proceeds less acquisition value, indexation and recognized expenses, plus applicable depreciation adjustments.
Potential deductions include purchase tax on the property being sold, legal and agent fees, documented improvements and other permitted expenses. Do not deduct amounts twice. Outstanding mortgage principal is not a separate deduction from gain; interest has specific deductibility conditions.
Buying a second home does not reset the first home’s tax basis. If the old home cost NIS 1.5 million, was worth 2.5 million when you bought another, then sold for 3 million, the initial difference is 1.5 million, not 500,000. At an illustrative 25% before adjustments that is NIS 375,000. The actual assessment depends on evidence.
Homes acquired before 2014
A qualifying dwelling may benefit from favorable linear allocation: the entire real gain is apportioned by days of ownership before and after 1 January 2014. The earlier portion is exempt and the later portion is taxed under the applicable rules.
This is not a market-value reset on 1 January 2014. Do not mechanically apply it to land, commercial property, development rights, trading activity or a complex gift history.
The sale-order comparison above supports pre-2014 purchases eligible for favourable linear apportionment and shows the day-based fractions. The separate simple single-sale calculator below still covers purchases from 2014.
When a sole-home sale may be exempt
Core conditions include a qualifying residential dwelling, an eligible seller, sole-home status subject to statutory exceptions, and sale of all the seller’s rights. Ownership must have lasted at least 18 months since the property became a dwelling, with no other sale using this same exemption in the preceding 18 months.
For an off-plan purchase, this ownership period does not necessarily run from signing the purchase contract. The current cap is NIS 5,008,000 of sale consideration, not profit, frozen through the end of 2027. Excess consideration and development rights may be taxable separately. Nonresidents, gifts and family ownership require additional checks.
Sell the newer home first, then the older one
After retaining both for three to five years, an ordinary sale of the newer home first is taxable because the older home remains. The old home then becomes the sole dwelling and may qualify for exemption. There is no general new 18-month waiting period merely because it becomes the sole home. Check ownership of that old dwelling and previous use of the same exemption.
A taxable first sale does not restart this exemption interval. Several years of owning two homes do not permanently disqualify the old home. A lawyer should check contract sequence and tax dates before signing; absence of a general waiting period does not make simultaneous transactions automatically safe.
Example: the newer home cost NIS 3 million plus NIS 240,000 purchase tax, sells for NIS 3.6 million, and has NIS 60,000 other recognized expenses. Before indexation and depreciation, gain is NIS 300,000 and tax NIS 75,000. If the old home then qualifies for full exemption, its tax is zero. These taxes total NIS 315,000; betterment levy and other costs are excluded. Purchase tax is not refunded but may reduce that newer home’s taxable gain.
Betterment levy and surtax
Betterment levy concerns value created by an approved plan, planning relaxation or permitted exceptional use. The general rate is 50% of the relevant appraised uplift, with exemptions and special regimes. Payment normally arises on realization, such as sale or obtaining a permit. General market appreciation is not itself the levy’s basis.
Before signing, check the local planning committee, plan history and possible assessment. No capital gains tax does not mean no betterment levy. Do not simply add 25% and 50%: their bases and expense treatment differ.
High-income surtax, מס יסף, needs a separate calculation. In 2026 the threshold is NIS 721,560: a 3% general excess-income charge and a separate 2% charge on excess capital-source income. Residential sale gains have additional inclusion conditions, including consideration above NIS 5,385,285 and a nonexempt sale. The calculator excludes these surtaxes.
Rental income and future sale adjustments
Main routes are full/partial exemption, 10% of gross rent without ordinary expense deductions, or ordinary income tax with permitted deductions. The 2026 exemption threshold is NIS 5,654 per month across the family’s relevant aggregate rent, not per apartment.
Between that threshold and twice the threshold, the exemption shrinks by the excess. At NIS 7,000 rent: excess 1,346, remaining exemption 4,308, taxable rent 2,692 under the ordinary rates for that route. This is not 10% of the excess. The best route depends on income, age, costs and other conditions.
Eligible owners who let their sole dwelling while renting another home in Israel may deduct their own rent up to NIS 90,000 annually under the special route and pay 10% on the balance. The usual payment deadline for the 10% route is 31 January of the following year.
Rental history also affects a later sale. Depreciation depends on the tax route, asset and legal circumstances. Do not automatically assume 2% of the whole purchase price each year. A previously rented home requires a separate depreciation review.
Inheritance, gifts and nonstandard property
Inheriting a dwelling is not itself a taxable sale. A later sale may qualify for a separate exemption based on the relationship to the deceased, their home ownership and their hypothetical eligibility. The heir owning another home does not always prevent this relief.
A gift to a qualifying relative often attracts purchase tax at one third of the normally calculated tax, not one third of the price. This is not a blanket exemption. Historical acquisition basis may carry over, and a cooling-off period may apply before an exempt sale.
Land, commercial units, companies, property trading businesses, urban renewal and development rights require different calculations. Check VAT and the developer contract price; purchase tax normally uses the VAT-inclusive transaction value. Do not treat these cases as ordinary private residential purchases.
Documents, reporting and signing
A purchase or sale declaration is normally due within 30 days of the tax transaction date. The basic self-assessed payment period is 60 days, subject to statutory exceptions and deferrals. Signing today and receiving keys next year does not automatically defer taxes. An exemption must also be claimed in the declaration.
- Original purchase agreement, title evidence and family ownership history.
- Completion, aliyah and previous exempt-sale dates.
- Invoices and payment evidence for purchase tax, legal work, agency and improvements.
- Rental tax history and depreciation records.
- Development-rights and local betterment-levy checks.
Ask a property lawyer to compare both sale orders in writing before signing. An agent can assist with property and transaction logistics; a tax opinion requires the relevant professional.
Common questions
Is the highest rate applied to the entire price?
No. Each band applies only to its slice. The calculator displays the breakdown.
Does briefly owning two homes mean 8%?
Not necessarily. A qualifying replacement with timely disposal may use sole-home rates.
Does a second purchase reset the first home’s gain?
No. A taxable sale uses the first home’s historical acquisition basis.
Must I wait 18 months after a taxable sale of the newer home?
There is no general new clock merely because the old home becomes sole. Check ownership of that home and previous sales using the same exemption.
Will purchase tax be refunded when I sell?
Not automatically. Purchase tax on the property being sold may reduce taxable gain as a recognized expense.
Does a zero result mean no declaration?
No. A zero estimate neither removes reporting duties nor proves an exemption.
Sources and currency
Main rates and deadlines were checked against Tax Authority publications. Additional references explain special cases. Limits for 2029–2031 are not predicted. This page does not update automatically.