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Israel Exit-Tax Estimator
If you ever leave Israel, the tax authority deems your assets sold. Estimate the bill, and how much apportioning the gain to your Israeli-residence years saves versus paying on all of it.
Aliyah is rarely framed with the exit in mind, but Israel has an exit tax. Under section 100A of the Income Tax Ordinance, the day you stop being an Israeli tax resident your assets are deemed sold, and the accrued capital gain becomes taxable. For an oleh who may move again for work or family, that is a real number worth knowing before it arrives.
The key relief is apportionment. Only the slice of the gain that built up during your Israeli-residence years is Israeli-taxable, so growth from before your aliyah is carved out. You can also defer: instead of paying at exit, you settle only when you actually sell, on that same Israeli slice. This estimator runs both routes on the gain you enter and shows what apportioning saves.
The figures are estimates. The rate, a possible surtax, and the oleh ten-year exemption on foreign assets all shift the real bill. Read the guide to the oleh ten-year exemption for how the exemption interacts, and get cross-border advice before you plan a move.
If You Later Leave Israel
rates as of 2026 (Israel)
When you stop being an Israeli tax resident, Israel deems your assets sold and taxes the accrued gain. Estimate the bill, and how much the apportion-and-defer route saves versus paying on the whole gain at exit. Figures are estimates.
Total accrued gain on the asset
₪1,000,000
Total years you have held the asset
10 years
Of which, as an Israeli resident
6 years
Capital-gains rate
₪150,000
Exit tax, apportioned (60% of the gain)
₪250,000
Full deemed-disposition at exit
₪600,000
Israeli-taxable slice of the gain
Apportioning and deferring saves you, versus paying on the whole gain at exit
₪100,000
How the two routes compare
Total accrued gain
₪1,000,000
Israeli-residence share of the holding
60%
Apportion + defer (tax on the Israeli slice)
₪150,000
Pay now (full deemed disposition)
₪250,000
Saving from apportioning
₪100,000
Why only part of the gain is Israeli-taxable
Israel taxes the slice of the gain that built up while you were an Israeli resident, not the whole thing. If you bought an asset abroad years before aliyah and leave Israel later, the pre-aliyah growth is apportioned out, and only the Israeli-residence share is taxed. The apportionment is by time held here versus total time held, which is the calculation above.
Pay at exit, or defer until you actually sell
Section 100A lets you either pay the deemed-disposition tax when you leave, or defer and settle only when you genuinely sell the asset, at which point you pay on the apportioned Israeli slice. Deferring usually means a smaller bill and no tax on growth you may never realise, but it keeps an open Israeli filing obligation. Which is better depends on your plans.
How the oleh 10-year exemption interacts
As a new immigrant you have a ten-year exemption on foreign-source income and gains. Foreign assets you sell inside that window are generally exempt, so the exit tax bites mainly on Israeli assets and on foreign gains realised after the exemption ends. A surtax (mas yesef) can also apply at higher income levels. This estimator ignores those interactions, so treat it as a planning sketch and get cross-border advice before you move.
שתפו:
Frequently asked questions
Yes. Section 100A treats your assets as sold the day before you cease Israeli residency, and taxes the accrued gain at capital-gains rates. It is designed to capture gains that built up while you were a resident before you take them out of the Israeli tax net. You can pay at exit or defer until the real sale.
Israel taxes only the part of the gain that accrued during your Israeli-residence years. The standard method splits the total gain by time: Israeli-resident years divided by total years you held the asset. If you held something for ten years and were an Israeli resident for six of them, roughly 60% of the gain is the Israeli slice, and the rest is carved out.
Deferring usually means a smaller, later bill and no tax on growth you might never realise, but it keeps an open Israeli filing obligation that follows you abroad. Paying at exit closes the matter but taxes a notional gain you have not actually banked. The right choice depends on whether you expect to sell soon, your destination's rules, and double-tax relief, so this is a conversation for a cross-border adviser.
It can, significantly. During your first ten years as an oleh, foreign-source gains are generally exempt, so the exit tax bites mainly on Israeli assets and on foreign gains realised after the exemption ends. This estimator does not model the exemption or a high-income surtax, so treat it as a planning sketch rather than a filing figure.
No. It uses a single capital-gains rate and the simple time-apportionment, and ignores the ten-year exemption, surtax, indexation, and your destination's treatment. Use it to understand the shape and scale of the liability, then confirm the binding number with the Israel Tax Authority or a cross-border tax professional.
Related reading
The oleh ten-year tax exemption
What the ten years of foreign-income and gains relief cover, and where the edges are.
Oleh vs returning resident (toshav chozer)
Which tax-residency status you hold, and why it changes your benefits and obligations.
The 2026 tax reform and olim
The reporting changes from January 2026 and what they mean for your exemption years.
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