Purchase Tax Calculator 2026
A tool to help you understand the costs of purchasing property
If you are planning to purchase real estate in Israel in 2026, it is important to take purchase tax into account as part of the overall cost. The amount of tax varies depending on the value of the property, the type of property and the purchaser's status. NewKey's Purchase Tax Calculator provides a quick estimate of the tax payable based on the information entered and the relevant purchase tax brackets for 2026.
What is purchase tax?
Purchase tax is a tax paid when acquiring rights in real estate in Israel. The tax rate is not the same in every case and may vary depending on the type of property, the transaction value and whether the purchase involves a single residential property, an additional residential property or another type of real estate.
Purchase tax brackets for a single residential property in 2026
For a purchaser who meets the requirements for a single residential property, the following purchase tax brackets apply in 2026:
- On the portion of the value up to ₪1,978,745 – no purchase tax is payable.
- On the portion above ₪1,978,745 and up to ₪2,347,040 – 3.5%.
- On the portion above ₪2,347,040 and up to ₪6,055,070 – 5%.
- On the portion above ₪6,055,070 and up to ₪20,183,565 – 8%.
- On the portion above ₪20,183,565 – 10%.
These tax brackets are frozen for the period from January 16, 2025 through January 15, 2028.
Purchase tax on an additional residential property in 2026
When purchasing a residential property that is not considered the purchaser's single residential property, the following tax rates apply in 2026:
- On the portion of the value up to ₪6,055,070 – 8%.
- On the portion of the value above ₪6,055,070 – 10%.
These rates apply under the temporary provision in effect through December 31, 2026.
Purchase tax on land and commercial property
When purchasing rights in real estate that is not a residential property, such as land or commercial property, the standard purchase tax rate is generally 6% of the transaction value.
When purchasing land, certain conditions may allow the effective tax rate to be reduced to 5%. This may apply, among other cases, when an approved plan permits the construction of a residential unit and a building permit is obtained within the period prescribed by law. The calculator displays the standard rate and does not automatically determine whether the purchaser qualifies for this benefit.
How to use the Purchase Tax Calculator
To receive an estimate of the purchase tax, enter the property price and select the property type:
- Single residential property
- Additional residential property
- Land
- Commercial property
The calculator will divide the transaction value into the applicable tax brackets and display the estimated purchase tax according to your selection.
Why use the calculator?
- Budget planning – estimate the purchase tax in advance as part of the overall transaction costs.
- Quick calculation – the result is updated automatically according to the property price and type of purchase.
- Tax bracket breakdown – see how the total tax is divided between the different purchase tax brackets.
- 2026 data – the calculation on this page is based on the purchase tax brackets and rates relevant for 2026.
Important to know
The Purchase Tax Calculator is intended to provide a general estimate for planning purposes only. The actual tax liability may vary depending on the purchaser's personal circumstances, status, eligibility for tax benefits or exemptions, the characteristics of the transaction and the provisions of law in effect on the purchase date.
Before completing a real estate transaction, it is recommended to confirm the final tax liability with the Israel Tax Authority and obtain professional advice from a lawyer, tax adviser or another qualified professional.