Israel Wealth & Property Tax
Detailed wealth & property tax rates and rules for Israel in 2026.
Wealth Tax
Israel does not impose a net wealth tax. However, a 3% high-income surtax applies to annual income exceeding approximately ILS 721,560, effectively functioning as an additional tax on high earners.
Wealth Tax Rate
0%
Inheritance / Estate Tax
Israel does not impose an inheritance or estate tax. The inheritance tax was abolished in 1981. Inherited assets are generally not subject to taxation upon transfer, though capital gains tax may apply when the heir subsequently disposes of the inherited asset (with the cost basis typically stepping up to the date of death value or original cost, depending on circumstances).
Top Rate
0%
Property Tax
Municipal property tax (arnona) is levied annually by local authorities based on the size, location, and use of the property. Rates vary significantly between municipalities. A purchase tax (mas rechisha) of 0-10% applies to real estate acquisitions on a progressive scale, with reduced rates and exemptions for first-time homebuyers. A betterment levy (hetel hashbacha) may apply when planning changes increase property value.
How Israel Wealth Tax compares
Israel does not tax net wealth. 191 of 203 countries TaxAtlas tracks take the same approach, which is useful context when weighing where to live, invest, or incorporate.
