What is the capital gains tax rate in Israel?

The standard real capital gains rate is 25% for individuals. A substantial shareholder (holding 10% or more) pays 30% on share gains. Real estate gains (mas shevach) are also taxed at 25% on the real, after-inflation gain. This tool applies 25% by default and lets you switch to the 30% substantial-shareholder rate for shares.

What does \"real gain\" mean in Israeli CGT?

Israel taxes the real gain — the increase in value above inflation. The portion of the gain attributable to inflation (the inflationary component) is exempt. This calculator includes an optional inflation field so it can strip out the inflationary part before applying the 25% rate.

Is my home exempt from mas shevach?

A single residential home can qualify for a full mas shevach exemption if you meet the conditions (for example owning only one home and meeting the holding/usage rules). Tick the primary-residence exemption box to model a zero-tax sale; otherwise the 25% rate applies to the real gain.

Can I deduct costs from the gain?

Yes. Allowable acquisition costs (purchase tax, lawyer, broker) and selling costs reduce the taxable gain. Enter them in the costs field and the calculator subtracts them before applying the rate, lowering the tax due.

Does this replace a tax adviser?

No. Israeli CGT has linear apportionment for assets held across rate-change dates, special rules for olim (new immigrants), and detailed mas shevach computations. This is a simplified estimate — confirm any real disposal with a qualified Israeli tax adviser.

Israel Capital Gains Tax Calculator

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This Israel capital gains tax calculator estimates the tax due when you sell listed shares or real estate in Israel. It applies the 25% real-gain rate (or 30% for a substantial shareholder), strips out the inflationary component, deducts your allowable costs, and can apply the primary-residence exemption for property.

How it works

Israel taxes the real gain — the gain above inflation — at a flat 25% for individuals (30% if you hold 10% or more of the company, the substantial-shareholder rate). Real estate is taxed under mas shevach, also at 25% on the real gain.

The calculation is:

gross gain      = sale price − purchase price − allowable costs
inflationary    = purchase price × inflation%   (exempt)
real gain       = max(0, gross gain − inflationary)
tax             = real gain × rate

For a qualifying single home you can apply the primary-residence exemption, which sets the tax to zero.

Example

Buy shares for ₪100,000, sell for ₪160,000 with ₪2,000 of costs and 5% cumulative inflation on the cost. Gross gain is ₪58,000; the inflationary component is ₪5,000, so the real gain is ₪53,000 and the 25% tax is ₪13,250. Switch to the 30% substantial-shareholder rate and the tax rises to ₪15,900.

Notes

This is a simplified estimate. It ignores linear apportionment across rate-change dates, special olim relief, loss carry-forwards and the detailed mas shevach mechanics. Confirm any real disposal with a qualified Israeli tax adviser. Not financial advice.