Question 1

What is Mas Rechisha (מס רכישה) in Israel?

Accepted Answer

Mas Rechisha is the Israeli real estate acquisition tax levied by the Israel Tax Authority on property purchasers, calculated as a progressive percentage of the purchase price.

Question 2

What are the purchase tax brackets for a single sole residential home (דירה יחידה)?

Accepted Answer

For 2024-2025, single home buyers pay: 0% on the first ₪1,978,745; 3.5% from ₪1,978,745 to ₪2,347,040; 5% from ₪2,347,040 to ₪6,053,490; 8% from ₪6,053,490 to ₪20,178,290; and 10% on amounts above ₪20,178,290.

Question 3

What is the tax rate for a second residential property (דירה נוספת)?

Accepted Answer

For an additional or investment property, the tax is 8% on purchase amounts up to ₪6,053,490, and 10% on the portion exceeding ₪6,053,490.

Question 4

What discount does a new immigrant (Oleh Chadash) receive on Mas Rechisha?

Accepted Answer

An Oleh Chadash purchasing a home within 7 years of making Aliyah qualifies for a special statutory concession: 0.5% on amounts up to ~₪1,988,760, and 5% on the portion above. (However, if the property price is within the 0% single home bracket, applying the single home rates is usually more advantageous).

Question 5

When must Mas Rechisha be paid to the Israel Tax Authority?

Accepted Answer

Mas Rechisha must be reported within 30 days of signing the purchase contract and paid within 60 days of the transaction date to avoid statutory late interest and linkage penalties.

Israel Real Estate Purchase Tax (Mas Rechisha) Calculator

Property Value & Buyer Status

Bracket-by-Bracket Purchase Tax Breakdown