This Israel inheritance tax calculator reflects the single most important fact about Israeli succession: Israel has no inheritance or estate tax, abolished in 1981. A bequest passes to heirs tax-free at the point of transfer. What the tool adds is the part people miss — the deferred capital gains liability heirs inherit through Israel’s carry-over cost base.
How it works
On the transfer itself, the tax is always zero:
inheritance tax = 0 (abolished 1981)The catch is the cost base. Israel does not step the value up to the market price at death. Instead the heir inherits the deceased’s original purchase price. If the heir later sells, capital gains tax falls on the entire gain since that original purchase:
deferred gain = current value − original cost base
deferred CGT = deferred gain × 25% (or mas shevach for property)That liability is dormant while the asset is held and only crystallises on a future sale.
Example
An estate worth ₪3,000,000 passes with zero inheritance tax. But the shares inside it were originally bought for ₪1,000,000. The heir inherits that ₪1,000,000 cost base, so a future sale at ₪3,000,000 would carry a ₪2,000,000 gain and roughly ₪500,000 of capital gains tax — deferred, but not avoided.
Notes
The zero-tax result is Israel’s domestic rule. Foreign assets, foreign-situated estates or heirs abroad may face inheritance or estate tax elsewhere (US estate tax, UK IHT). Probate or an inheritance order is still required. This is an estimate, not legal or tax advice — consult a qualified Israeli succession adviser.