First home purchase tax – the guide for 2023

After the publication of the price index for 2022:

The purchase tax rates are updated with good news for the buyers of their single apartment.

The Tax Authority has updated the tax brackets for 2023, and the exemption threshold will rise once more • The first tax bracket for investors (the increase from 8% to 10%) will be updated to approximately NIS 5.87 million when the exemption for a single apartment climbs to approximately NIS 1.92 million instead of 1.805 million

The new tax rates are from January 16th, 2023 to January 15, 2024

SINGLE APARTMENT Tax rate (%)
Up to 1 919 155NIS 0%
1 919 155 – 2 276 360 NIS 3.5%
2 276 360 – 5 872 725 NIS 5%
5 872 725 – 19,575,755 NIS 8%
Above 19 575 755 NIS 10%
INVESTORS
Up to 5 873 000NIS 8%
From 5 873 000 10%

 

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