Per the Pashut Neto calculator, a 2,000,000 ₪ apartment rented at 5,000 ₪ per month yields 3.0% gross in 2026 and about 2.8% net, after 4,000 ₪ annual expenses and roughly 745 ₪ purchase tax (single home).
How is it calculated?
Gross yield = annual rent ÷ apartment price × 100. Net yield = (annual rent − annual expenses) ÷ (price + purchase tax) × 100. The calculator computes the 2026 purchase tax (mas rechisha) automatically: for a single home 0% up to 1,978,745 ₪, 3.5% up to 2,347,040 ₪ and 5% up to 6,055,070 ₪; for an additional home 8% from the first shekel. Payback years = total invested ÷ annual net rent. The calculation excludes financing costs, vacancy periods and appreciation.
Example: a 2,000,000 ₪ apartment, rent 5,000 ₪ per month (60,000 ₪ per year), expenses 4,000 ₪ per year. Gross yield: 60,000 ÷ 2,000,000 = 3.0%. Purchase tax for a single home: about 745 ₪. Net yield: 56,000 ÷ 2,000,745 = about 2.8%, and payback is about 36 years. Typical gross yields in Israel run about 2.5%–4%. Past returns do not guarantee future returns.
Frequently asked questions
How do you calculate rental yield on an apartment in Israel?
Divide the annual rent by the apartment price and multiply by 100. For example: 5,000 ₪ per month is 60,000 ₪ per year, and on a 2,000,000 ₪ apartment that is a 3.0% gross yield. For net yield, subtract annual expenses and add the purchase tax to the price.
What is a typical rental yield in Israel?
Typical gross yields in Israel's residential market run about 2.5%–4%. In the calculator's example — a 2,000,000 ₪ apartment rented at 5,000 ₪ — the gross yield is 3.0% and the net is about 2.8%.
How much is purchase tax on an investment apartment in 2026?
On an additional (investment) home, the 2026 purchase tax (mas rechisha) is 8% from the first shekel. For a single home the brackets are 0% up to 1,978,745 ₪, 3.5% up to 2,347,040 ₪ and 5% up to 6,055,070 ₪ — for example, on a 2,000,000 ₪ single home the tax is about 745 ₪.
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.
