Real Estate Capital Gains Tax
Estimate the mas shevach (land appreciation tax) on a resale: purchase price, fees, works, depreciation and the beneficial linear calculation.
Property type
The deal
Acquisition costs
Lawyer, real-estate agent, appraiser — paid at acquisition.
Renovations that add value; keep all receipts.
Selling costs
Lawyer, agent (up to 2%), marketing costs.
Paid to the local committee — fully deductible.
Adjustments
Depreciation already deducted against rent: it lowers the cost basis and raises the taxable gain.
Single-residence exemption
Single home held over 18 months: exempt up to ₪5,008,000 (2025 cap).
High-income surtax (mas yesef)
Adds 3% on the taxable gain. Can reach 5% on high capital income.
Estimated capital gains tax
Effective rate 19.4%Gain build-up
Beneficial linear calculation
Holding period: 16Real Estate Capital Gains Tax
For a home held before 2014, the linear method exempts the gain accrued before January 1, 2014 and taxes only the later share at 25%. Keep every receipt (lawyer, works, purchase tax): they reduce the taxable base directly.
These simulations are indicative, based on 2026 rates, and do not constitute tax advice. Consult a BNG & CO expert for a personalized analysis.