Mas Rekhisha in Israel 2026: Tax Brackets and Calculation with IsraRea

Mas Rekhisha: Real Estate Purchase Tax in Israel and Optimization Methods

Mas Rekhisha is a mandatory state tax on the purchase of real estate in Israel, the amount of which is calculated on a progressive scale depending on the value of the property and the status of the buyer. In 2026, when purchasing a single residence valued at up to 1,978,745 ₪, the tax rate is 0%, making the acquisition of a first apartment the most financially advantageous.

What is the Mas Rekhisha for a Single Residence in 2026?

For Israeli residents purchasing their sole apartment, preferential tax brackets apply, starting with a zero rate. If the property value exceeds the established threshold, tax is only calculated on the difference between the brackets.

In practice, the bracket calculations are updated annually on January 16th. Current data for 2026 for "dira yakhida" (single residence):

Detailed information on the assessment rules can be found on the official portal of the Israel Tax Authority.

What Tax Do Investors and Second-Home Owners Pay?

When purchasing investment real estate or a second property in Israel, the tax burden is significantly higher: the minimum rate starts at 8%. The state uses this tool to regulate demand in the housing market and curb price growth.

• Up to the amount of 6,055,070 ₪ — the rate is 8%.
• On the amount exceeding 6,055,070 ₪ — the rate increases to 10%.

IsraRealty clients often approach us for tax optimization when expanding their portfolio. In our experience, correct deal structuring (for example, registering the property in the names of children or utilizing "Oleh Hadash" status) allows for legal savings of tens of thousands of shekels.

What Mas Rekhisha Benefits are Available to New Immigrants?

New immigrants (Olim Hadashim) are entitled to a fixed preferential tax rate for 7 years after Aliyah. This benefit applies regardless of whether the apartment is their first or a subsequent one, provided it is intended for the immigrant's own residence.

According to 2024 rules, the preferential brackets for Olim are as follows:

1. 0.5% on the portion of the property value up to 1,988,090 ₪.
2. 5% on the remaining amount above this threshold.

Note: Sometimes it is more profitable for an immigrant to use the general "single residence" scale if the apartment price does not exceed 1.97 million shekels. Our specialists perform a comparative mortgage calculation and tax assessment to choose the most economical option.

"A mistake in choosing the tax track when processing a transaction for an immigrant can cost a family between 40,000 and 70,000 shekels in overpayments. We always verify eligibility for benefits before signing the contract." — Senior Real Estate Consultant at IsraRealty

Real Case: Tax Savings in Netanya

Property: 4-room apartment in Netanya valued at 2,800,000 ₪.
Situation: An immigrant family was planning the purchase. Initially, they considered paying according to the standard investment scale because they owned property abroad.
Result: IsraRealty lawyers proved the buyers' eligibility for "single residence" status (due to the specific nature of the foreign asset ownership) and applied the Oleh Hadash benefit. Ultimately, the Mas Rekhisha amount was reduced from 224,000 ₪ to 50,500 ₪. The net savings amounted to 173,500 shekels.

How to Properly Use the Purchase Tax Calculator?

To calculate accurately, one must consider not only the price but also the Tabu registration, leasehold rights, and the buyer's marital status. Independent use of online tools often fails to account for legislative nuances.

Before purchasing, we recommend taking the following steps:

• Order a fresh Tabu extract (Land Registry).
• Check for debts or liens on the property.
• Obtain preliminary mortgage approval, factoring tax expenses into the total budget.

IsraRealty clients don't waste time on bureaucracy — our lawyers and certified brokers handle all document verification and tax liability calculations, ensuring the legal integrity of the deal.

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Frequently Asked Questions

1. When must Mas Rekhisha be paid?

The tax must be paid within 60 days of signing the sales contract. Notification to the tax office is submitted by the lawyer immediately after the transaction.

2. Can the tax be included in the mortgage amount?

Banks (such as Bank Hapoalim or Leumi) issue mortgages based on the apartment's value, not the total expenses. However, with correct LTV (Loan-to-Value) calculation, we help clients optimize their budget so that funds are sufficient for all associated payments.

3. Do foreigners pay purchase tax?

Yes, foreign citizens who do not have Israeli residency typically pay tax at the same rates as investors (starting from 8%), unless otherwise provided by international agreements.

4. Is tax payable when buying an "off-plan" apartment (from a developer)?

Yes, tax is also paid when buying a new construction. The specific detail is that tax brackets are calculated based on the contract price but are adjusted according to the Construction Input Index if payments are staggered.

5. Are there discounts for disabled individuals or families of fallen soldiers?

Yes, certain categories of citizens are entitled to a preferential rate of 0.5% when purchasing a home for their own residence. Confirmation of status from the relevant authorities is required.