What is mas rechisha?

Mas rechisha is Israel's purchase tax — the transfer tax a buyer pays when acquiring property. It is charged on a progressive scale, with much lower rates for someone buying their sole home than for investors and people buying an additional property.

How does the sole-residence scale work?

For a buyer whose property will be their only home, the first band (up to roughly ₪1.98m) is taxed at 0%, then successive bands at 3.5%, 5%, 8% and 10%. Each rate applies only to the portion of the price within that band, so the tax is marginal rather than a single flat rate.

What rate do investors pay?

Buyers of an additional property or an investment pay a steeper scale that starts at 8% from the very first shekel and rises to 10% above a high threshold (around ₪6.05m). There is no 0% band, which makes investor purchase tax substantially higher than for a sole home.

Are the brackets fixed?

No. The mas rechisha bracket thresholds are updated annually for inflation by the Tax Authority (Rashut HaMisim), usually each January. This tool uses a recent set of brackets, so verify the current-year figures before relying on the exact tax.

Are there exemptions or reductions?

Yes. New immigrants (olim), people with disabilities, and certain family transfers can qualify for reduced rates or exemptions, and the sole-residence relief itself depends on selling any previous home within a set period. This calculator applies the standard scales only; check eligibility for reliefs with an Israeli lawyer.

Israel Stamp Duty / Transfer Tax Calculator

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An Israel stamp duty calculator for mas rechisha, the purchase tax a buyer pays when acquiring property. It applies Israel’s progressive tiered brackets — generous for a sole residence, much steeper for investors — and shows the total acquisition tax and effective rate in shekels.

How it works

Mas rechisha is marginal: each rate applies only to the slice of the price that falls within its band, exactly like income tax. The tool sums the tax band by band.

For a sole residence, the scale runs (recent brackets):

up to  ₪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%
above ₪20,183,565          10%

For an additional / investment property, there is no 0% band:

up to  ₪6,055,070          8%
above  ₪6,055,070          10%

The total is the sum across the bands, and the effective rate is total tax / price.

Example and notes

Buying a sole home for ₪3,000,000: the first ₪1,978,745 is free, the next ₪368,295 at 3.5% (₪12,890), and the remaining ₪652,960 at 5% (₪32,648) — about ₪45,538 in total, an effective rate near 1.5%.

The same ₪3,000,000 as an investment is taxed at 8% from the first shekel: ₪240,000. Bracket thresholds are updated each January for inflation, and olim or family transfers may qualify for reductions — confirm the current brackets and any relief with an Israeli lawyer.