Israel Exit Tax Explained (2026)
When you stop being an Israeli tax resident, Section 100A of the Income Tax Ordinance treats your capital assets as if you sold them the day before you left. The built-up gain becomes taxable — even though you never sold. Here is how it works, the real rates, and a worked example.
What “exit tax” actually means
Israel does not have a special departure levy with its own rate. Instead, Section 100A creates a deemed sale: on the day before you cease to be an Israeli resident, every capital asset you own is treated as sold at fair market value.
The difference between that market value and your original cost (the unrealised gain) is taxed at Israel’s ordinary capital-gains rates — the same rates that would apply on a real sale.
Common assets caught by this: Israeli and foreign securities (including IBKR / Schwab / Fidelity portfolios), crypto, foreign real estate, and private-company shares. A sole principal residence in Israel is generally outside the charge.
The rates that apply
The deemed sale is taxed at standard Israeli capital-gains rates. These figures are from WizeTax’s verified dataset for Israel:
| Situation | Rate | Basis |
|---|---|---|
| Financial assets / securities / crypto | 25% | Standard capital-gains rate |
| Held ≥10% of the company (controlling shareholder) | 30% | Higher rate for ≥10% shareholders |
| High-income surtax | +3% | On annual taxable income above ILS 721,560 |
Source: WizeTax verified dataset (Israel) · PwC Worldwide Tax Summaries · Israel Tax Authority
Pay now, or defer until you actually sell
Section 100A(b) gives you a choice. You can pay the exit tax on departure, on the deemed-sale value.
Or you can elect to defer: pay nothing on exit, and settle only when you actually sell the asset later. The liability is then computed on the portion of the gain that accrued during your Israeli residency.
Deferral isn’t free convenience — it must be properly elected and documented, and the Tax Authority can require reporting and (in some structures) security. Interest/linkage considerations make “pay now vs defer” a real planning decision, not a default.
Worked example
A non-controlling investor leaves Israel holding a foreign brokerage portfolio bought for $300,000, now worth $500,000.
If instead this investor were a ≥10% shareholder in a company, the same $200,000 gain would be taxed at 30% = $60,000. A 3% surtax may add on top once annual taxable income exceeds ILS 721,560. Want this run on your real numbers? Use the exit-tax calculator below.
Before you act
- Bilateral tax treaties (Israel has 54) can reduce or reshape the liability for some assets and destinations — but not always, and not for everyone.
- New immigrants (olim) and long-returning residents have their own 10-year foreign-income rules that interact with all of this.
- Employee options / RSUs are usually taxed as employment income (marginal rate), not the 25% capital-gains rate — a frequent and expensive surprise.
Estimate your own exit tax
Enter your assets and cost basis and see the one-time figure in seconds.
Open the Exit Tax Calculator →Frequently asked questions
What is Israel’s exit tax?
Under Section 100A, when you stop being an Israeli tax resident your capital assets are deemed sold one day before residency ends. The unrealised gain is taxed even though no real sale happened.
What rate applies?
25% on financial assets, 30% if you held 10%+ of the company (controlling shareholder), plus a possible 3% high-income surtax on annual taxable income above ILS 721,560.
Can I defer paying it?
Yes — Section 100A(b) lets you postpone the tax until you actually sell the asset, instead of paying on departure, if properly elected and documented.
Who counts as a controlling shareholder?
Someone holding 10% or more of the company at the (deemed) sale date, or in the 12 months before it — taxed at 30% instead of 25%.
Is my Israeli home taxed?
A sole principal residence in Israel is generally outside the exit-tax charge, subject to holding-period and single-dwelling conditions.