Car Tax Calculator
When shipping a car to Israel there will be taxes due. What will the taxes be on an imported car? Follow the steps below and refer to the chart to calculate your total.
First answer these questions:
- What is the age of the car in months from the date it was manufactured (manufacture date can be found on the inside of the door post)?
- What is your status in Israel (Oleh, Tourist, etc.)?
- What would the same car (or similar model) cost new today in the country of export?
- Was the car manufactured in the country you’re shipping it from? (Unless car is being imported from Europe in which case there is no restriction on place of manufacture. In addition, if car is more than 30 years old, it is an antique and there is no country of origin restriction.)
Now apply the following math calculations – check the age against the status to make sure you qualify. If you do, depreciate the value new by 1% per month up to 90% depreciation, then multiply by either:
- 80% for Olim
- 120% for everyone else assuming it was made in the export country.
A tourist may be required to leave a bank guarantee for the amount of the tax if the car is in Israel for more than 6 months.
Please note this is an estimate of your tax duties based on the information you provided and information supplied at www.mof.gov.il. Actual taxes due will be determined by Meches once the car is in Israel.
|Vehicle Information By Status|
|Description||Oleh||Toshav Hozer||Israeli Citizen||Tourist / Diplomat*|
|Clear Title on the car||X||X||X||X|
|Condition Report at Origin||X||X||X||X|
|Age Limit of Vehicle (from date of manufacture)||None||4 years||2 years||None|
|Israeli Drivers License||X||X||X|
|Foreign Drivers License||X||X|
|Letter from Commercial Importer||X||X||X|
|Import License from Min. of Transportation||X||X||X|
|3rd Party “Hova” Insurance||X||X||X||X|
|Taxes Due (Appx) Based on Depreciated Value of Vehicle (discounts for “green” cars)||80%||120%||120%||0%|
|Taxes Due (Appx) Based on Depreciated Value of Hybrid Cars (engine size cannot exceed 3000 cc)||60% – 70%||60% – 70%||60% – 70%||0%|
|Taxes Due on Electric Vehicles||0%||0%||0%||0%|
|Must car be exported?||No||No||No||Yes|
|Must car meet local requirements?||Yes||Yes||Yes||No|
|Must a car imported from the USA, Canada or Mexico be manufactured in the USA, Canada or Mexico?||**Yes||**Yes||**Yes||No|
|Must car imported from Europe be Made in Europe?||No||No||No||No|
*Diplomats, like tourists can import any car with no need for code modifications.
However, diplomats generally do not have time limitations.
They can keep the car in Israel for as long as they have diplomatic status.
Tourists can keep the car here for 6 months and sometimes receive extensions for up to 9 or 12 months, but must then export the car out for at least 3 months.
Cars imported on a student visa (A2) may keep the car here as long as the visa is valid.
If the institute of learning guarantees to pay the taxes in case you leave the country and do not export the car out, then you will usually not have to leave a deposit / bank guarantee.
If the car is under 4 years old from date of manufacture, you can pay taxes and make it an “Israeli” car.
If more than 4 years old you cannot pay taxes and make it an Israeli car.
With a work visa, a car may be imported with no age or country of origin restrictions.
When the permit is renewed, you may be asked to leave a bank guarantee in the amount of taxes due.
This bank guarantee is returned when you export the vehicle out of Israel.
**If car is more than 30 years old, it is an antique and there is no country of origin restriction.
Please do not hesitate to contact us with any other questions you may have.