As of 2026, selling your only apartment in Israel is exempt from Shevach tax up to a sale price of 5,008,000 ₪; otherwise 25% tax applies only to the portion of the gain accrued from January 1, 2014 onward (linear apportionment). Example: an apartment bought in June 2010 for 1,000,000 ₪ and sold in July 2026 for 2,500,000 ₪ (not an only home) — about 78% of the 1,500,000 ₪ gain is taxable, for a tax of roughly 292,000 ₪.
How is it calculated?
The calculator first checks the single-home exemption: if this is your only apartment in Israel, you have owned it for at least 18 months, you have not used a similar exemption in the 18 months before the sale, and you are an Israeli resident — the sale is exempt from Shevach tax up to a price of 5,008,000 ₪ (cap frozen for 2025–2027). If there is no exemption, the gain is computed: sale price minus purchase price minus deductible expenses — purchase tax, legal fees, broker fee up to 2%, renovations and real (CPI-indexed) mortgage interest. Under the linear apportionment rule the gain is split by days of ownership: the part accrued through 31.12.2013 is exempt, and the part from 1.1.2014 onward is taxed at 25%.
Example: an apartment bought in June 2010 for 1,000,000 ₪ and sold in July 2026 for 2,500,000 ₪, not an only home. The gain: 1,500,000 ₪. Out of about 16 years of ownership, about 12.5 years fall after 1.1.2014 — so about 78% of the gain is taxable, and the tax is roughly 292,000 ₪. Important: the calculator uses the nominal gain, without CPI-indexing the purchase cost and expenses — so the actual tax is usually lower. For an exact figure consult an appraiser or tax adviser, or use the Israel Tax Authority simulator.
Frequently asked questions
When is an apartment sale exempt from Shevach tax in Israel?
The single-home exemption (s.49b(2)) applies when all conditions are met: it is your only apartment in Israel, you have owned it for at least 18 months, you have not used a similar exemption in the previous 18 months, and you are an Israeli resident. The exemption covers sale prices up to 5,008,000 ₪ — a cap frozen for 2025–2027. Tax is due on any portion above the cap.
How does the linear apportionment (linear beneficial calculation) work?
The gain is split linearly by days of ownership: the part accrued through 31.12.2013 is tax-exempt, and the part from 1.1.2014 onward is taxed at 25%. For example, an apartment bought in 6/2010 and sold in 7/2026 — about 78% of the ownership period falls after 2014, so about 78% of the gain is taxable. The earlier the purchase, the larger the exempt share.
Which expenses can be deducted from the Shevach gain?
Deductible expenses include the purchase tax paid when buying, legal fees, broker commission up to 2% of the deal price, renovation and improvement costs, and real (CPI-indexed) mortgage interest paid. For example, 100,000 ₪ of deductible expenses reduces the taxable gain and can save tens of thousands of shekels in tax.
This calculation is a general estimate for illustration only. It does not constitute tax, pension, or investment advice, nor a substitute for personal advice from a licensed professional, and should not be relied on for decisions.
