Mas Rechisha 2026: How Much Does a Foreign Buyer Pay?

In 2026, a foreign (non-resident) buyer pays 8% Mas Rechisha — Israel's purchase tax — from the very first shekel, with no exempt bracket, up to ₪6,055,070, then 10% above that.

The short answer

**In 2026, a foreign (non-resident) buyer pays 8% Mas Rechisha — Israel's purchase tax — from the very first shekel, with no exempt bracket, up to ₪6,055,070, then 10% above that.** On a ₪3,000,000 purchase, the tax is **₪240,000** (about $77,000 / €60,000 at the reference rates in the notes). The brackets are frozen until January 15, 2028, so the same rates apply to any purchase signed in 2026.

The 2026 brackets, by buyer profile

The rate depends not just on price but on your **profile on signing day**. Each rate applies only to its own slice of the price.

| Price slice | Israeli resident (sole home) | Non-resident / foreigner | Oleh hadash (main residence) | |---|---|---|---| | ₪0 – ₪1,978,745 | **0%** | **8%** | **0%** | | ₪1,978,745 – ₪2,347,040 | 3.5% | 8% | 0.5% | | ₪2,347,040 – ₪6,055,070 | 5% | 8% | 0.5% | | ₪6,055,070 – ₪20,183,565 | 8% | **10%** | — | | Above ₪20,183,565 | 10% | 10% | — |

- **Resident**: the progressive scale above applies to a sole home (dira yechida). - **Non-resident**: 8% on the full price up to ₪6,055,070, then 10% above — no zero-rated slice at all. - **Oleh**: preferential scale during the first 7 years after aliyah, for a main residence; the published scale details it up to ₪6,055,070. - The brackets are **frozen from January 16, 2025 to January 15, 2028** under the 2025 Finance Law (Tax Authority circular 1/2026): no annual inflation indexation during this period.

Worked example: a ₪3,000,000 purchase by a non-resident

1. Purchase price: **₪3,000,000** — entirely below the ₪6,055,070 threshold. 2. Non-resident rate on this range: **8%**, from the first shekel, with no exempt slice. 3. Calculation: ₪3,000,000 × 8% = **₪240,000** of Mas Rechisha (about $77,000 at ₪3.11/$ on October 19, 2026; about €60,000 at the site's indicative ~₪4/€ rate — adjust on payment day).

At the same price, the other two profiles pay:

| Profile | Tax on ₪3,000,000 | How it is calculated | |---|---|---| | Non-resident / foreigner | **₪240,000** | 8% on the full price | | Resident (sole home) | **₪45,538** | 0% to ₪1,978,745 + 3.5% on ₪368,295 + 5% on ₪652,960 | | Oleh (main residence) | **₪5,106** | 0% to ₪1,978,745 + 0.5% on ₪1,021,255 |

For comparison, on the site's published ₪2,000,000 example: ₪160,000 for a non-resident, ₪744 for a resident, about ₪106 for an oleh.

What changes — and what to check before you sign

- **The brackets will not move in 2026 or 2027**: they are frozen until January 15, 2028. Beware of calculators that apply annual indexation — they produce wrong results for 2026. - **On the financing side, the Bank of Israel's key rate drives the cost of your mortgage**: it is reviewed at its monetary policy meetings. For the current rate and the reference monthly payment per ₪1M borrowed, updated after every decision, see our [mortgage (mashkanta) guide](/blog/israel-mortgage-mashkanta-guide). - **Only your status on signing day counts**: becoming a resident or oleh after the purchase gives no refund. If aliyah is on the table, settle the timing before signing. - **Strict deadlines**: your lawyer files the purchase declaration within **30 days**; the tax is paid within **60 days**, in shekels. Late payment triggers automatic penalties and interest.

Calculate your exact tax

The amount depends on your price and your profile: run the **IsraelStart taxes and fees simulator** — [/simulator/taxes-fees](/simulator/taxes-fees) — then have your lawyer confirm the result before signing (the Israel Tax Authority's official simulator remains the reference).

Go further

- The full legal guide: [Mas Rechisha guide](/legal-guide/mas-rechisha) - The taxation pillar: [Israel real estate taxation](/blog/israel-real-estate-taxation) - The detailed article: [Mas Rechisha: the 2026 guide](/blog/mas-rechisha-french-buyers-guide) - Buying as a foreigner: [Israel purchase tax for foreign buyers](/blog/israel-purchase-tax-foreign-buyers)

Questions about your case? Message us on WhatsApp: https://wa.me/972559760779

Frequently asked questions

What is the Mas Rechisha rate for a foreign buyer in 2026?

8% from the first shekel, with no exempt bracket, up to ₪6,055,070; 10% above. On ₪3,000,000: ₪240,000 of tax.

Will the brackets change in 2026 or 2027?

No. The brackets are frozen by the 2025 Finance Law from January 16, 2025 to January 15, 2028, with no annual indexation. The 2026 figures remain identical in 2027.

When and how is Mas Rechisha paid?

Your lawyer files the purchase declaration within 30 days of signing; the tax is paid within 60 days, in shekels, to the Israel Tax Authority. Plan the currency transfer ahead — international bank delays can reach a week.

Does buying through a company reduce the tax?

No. A company is treated as a non-resident: 8% from the first shekel, no exempt bracket — and you can permanently lose access to the resident or oleh scale. Never set up a structure without written approval from an Israeli tax lawyer.

I plan to make aliyah: should I buy before or after?

Usually after: the oleh scale (0% up to ₪1,978,745, then 0.5%) applies only to purchases signed with oleh status, for a main residence, during the first 7 years. On ₪3,000,000, the gap versus the non-resident scale reaches ₪234,894.

Is Mas Rechisha tax-deductible in my home country?

Not directly: it is an acquisition tax, not an income tax. It does, however, add to the property's cost basis, which reduces the taxable capital gain when you resell, under the applicable tax treaty.

Last updated: October 21, 2026