Purchase tax calculator
Purchase tax is a large cost many buyers discover too late. The calculator below computes the exact tax by the home price and the purchase type — only home or additional home — and shows the full calculation, bracket by bracket, using the brackets in force.
Purchase tax calculator
How much purchase tax you'll pay on the property — by the current tax brackets.
| Rate | Slice of value | Tax |
|---|---|---|
| 0%up to ₪2M | ₪1,978,745 | ₪0 |
| 3.5%₪2M–₪2.3M | ₪368,295 | ₪12,890 |
| 5%₪2.3M–₪6.1M | ₪152,960 | ₪7,648 |
For Israeli residents, standard purchases only — excludes new immigrants, disability tracks and other special cases. To verify against the official figure, use the Israel Tax Authority's simulator.
For illustration only · not advice and not a commitment
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How the tax is calculated
Purchase tax works in brackets, like income tax: each slice of the home's price is taxed at the rate of the bracket it falls in. Only-home buyers get reduced brackets that include a full exemption up to a threshold — so on many homes the tax is very low or zero. An additional home is taxed at high rates from the first shekel.
The brackets are set by law and updated from time to time; as of today their updating is frozen in legislation until the start of 2028. The calculator uses the brackets in force, and notes the update date.
Why it's critical for the budget
Purchase tax can't be financed from the mortgage — the financing ratio is measured against the property's value alone, and the tax is paid from your equity, close to the transaction. The difference between the only-home path and the additional-home path can reach tens and hundreds of thousands of shekels — a difference that moves the entire purchase budget.
Home upgraders, take note: if you sell your existing home within the period set by law, you can be treated as only-home buyers for tax purposes. The sale timeline is worth real money here.
Frequently asked questions
Is the calculator's result my final tax liability?
The calculator computes the tax by the brackets in force and by the two common paths — only home and additional home. Special situations (new immigrants, people with disabilities, inheritances, gifts between relatives and more) are subject to their own rules. For an actual transaction, the final liability is calculated with the Tax Authority and with a real-estate lawyer.
I'm a home upgrader who hasn't sold yet — which path should I choose in the calculator?
If you intend to sell your existing home within the period set by law, calculate on the only-home path — that's the tax you'll pay in the end if you meet the timeline. It's worth also running the additional-home path as a backup scenario, so you know the financial risk if the sale is delayed.