If you’re buying or renting a home in Israel, arnona is the recurring cost you can’t escape — and it’s also the one most foreign buyers underestimate. Two apartments of identical size in different cities can have arnona bills that differ by three times. A 100 sqm apartment in Tel Aviv can run roughly ₪10,000–11,000 per year in arnona. The same apartment in Be’er Sheva might be closer to ₪3,500–4,000.
This guide walks through how arnona actually works in 2026, what you’ll pay in each major city Anglo buyers consider, and the discounts most new immigrants don’t know they qualify for.
What is arnona?
Arnona (ארנונה) is Israel’s municipal property tax. Every city, town, and regional council collects it — there is no national rate. The money funds local services: schools, garbage collection, parks, roads, street lighting. If you own a home, you pay arnona. If you rent, you almost always pay it (the lease will say whether arnona is included or paid separately, and “separately” is the norm).
Arnona is billed annually but most people pay it in two installments or monthly via direct debit.
How arnona is calculated
The formula is simple in shape and varies in detail:
Annual arnona = rate per sqm × home size in sqm × any zone or property-type adjustments
Three things drive what you actually pay:
1. The city you live in. Each municipality sets its own residential rate. National coalition agreements cap year-over-year increases at small percentages, but the absolute level can differ wildly between cities.
2. The zone within the city. Most larger cities (Tel Aviv, Jerusalem, Haifa, Netanya) divide themselves into zones, with central or higher-demand neighborhoods carrying higher rates. Jerusalem alone has multiple residential tariffs depending on the area.
3. The property’s measured size. Israeli arnona uses a measurement that includes balconies, storage rooms, and parking spaces in many cities — the figure on your tax bill may be larger than the “net” square meters quoted in real-estate listings. Always check the arnona-registered area before you assume the rate.
Comparison: 2026 residential arnona rates by city
These are illustrative ranges for standard residential property, not exact tariffs. Confirm with the municipality before you use them for budgeting. All figures are NIS per sqm per year.
| City | Approximate range (NIS/sqm/year) | Notes |
|---|---|---|
| Tel Aviv | 95–115 | Among the highest in Israel; multiple zones |
| Ramat Gan | 75–95 | Lower than Tel Aviv but climbing |
| Herzliya | 80–100 | Higher in coastal/Pituach zones |
| Ra’anana | 70–90 | Consistent across the city |
| Kfar Saba | 65–85 | Family-friendly mid-range |
| Netanya | 60–80 | Varies by zone; coastal slightly higher |
| Jerusalem | 40–80 | Wide range; depends heavily on neighborhood |
| Modi’in | 65–80 | Newer city, fewer zone differences |
| Haifa | 50–70 | Lower than Tel Aviv coastal cities |
| Beit Shemesh | 45–65 | Among the lower coastal-plain rates |
| Beer Sheva | 35–50 | Lowest of the major cities |
| Eilat | 50–65 | Tourism economy keeps residential moderate |
A practical reading: a 4-room apartment of around 100 sqm will cost roughly ₪7,000–11,000/year in Tel Aviv, ₪4,500–7,000/year in Netanya or Ra’anana, and ₪3,500–5,000/year in Be’er Sheva or Beit Shemesh. Plan accordingly when you’re modeling total cost of ownership.
Who has to pay arnona?
Arnona is owed by whoever uses the property, not whoever owns it. In practice:
- If you own and live in your home: you pay arnona.
- If you rent your home out long-term: the tenant pays arnona, and the lease will reflect that.
- If you own a vacation apartment that sits empty: you pay arnona — and many cities now charge a higher rate for non-occupied homes, sometimes double.
- If you Airbnb: the rules vary by city and have been tightening every year. Tel Aviv, Jerusalem, and several others now treat short-term rentals as commercial and charge significantly higher rates.
This last point matters for foreign owners. If you bought an apartment in Israel and don’t live there full-time, check with the municipality before assuming you’ll pay residential rates.
Discounts and exemptions: the olim discount most buyers miss
This is the section most new immigrants wish they’d read sooner. Israel offers a substantial arnona discount to olim chadashim during their first years in the country. The structure has shifted over the years, but the benefit is meaningful — typically a steep discount in your first year of aliyah, with the percentage tapering across the next few years.
To claim the olim discount you need to:
- Apply at your local municipality’s arnona office (not online, in most cities, though some accept email applications).
- Bring your teudat oleh (immigrant certificate) and lease or proof of ownership.
- Apply within the first 12 months of moving in — backdating is limited.
Other arnona discounts worth knowing about:
- Senior citizens (70+) often qualify for 30–100% discounts depending on income.
- Single parents with custody of children can apply for partial reductions.
- Recipients of certain government allowances (Bituach Leumi disability, income support) qualify automatically in most cities.
- Reservists (miluim) get arnona discounts for periods of active service — relevant for many families post-October 2023.
- Empty/under-renovation properties can sometimes apply for reduced rates during the renovation period.
These discounts are not advertised. You have to apply. Every year you don’t apply is money left on the table.
How and when arnona is paid
Most cities offer three payment options:
- Annual upfront payment — usually carries a small discount (around 2%) for paying the full year by the end of January.
- Bi-monthly installments — six payments across the year.
- Monthly direct debit (hora’at keva) — popular among working families.
If you fall behind, the municipality can place a lien on your property and eventually seize bank account funds via the hotza’a la-poal (Execution Office). Don’t ignore arnona bills — appeals exist if you think the calculation is wrong, but ignoring is the worst option.
Frequently asked questions
How much is arnona per month in Israel?
It depends entirely on the city and apartment size, but a useful rule of thumb: budget roughly ₪400–900 per month for a typical Anglo-friendly 4-room apartment, with the higher end in Tel Aviv and central Gush Dan, the lower end in Be’er Sheva and outlying cities.
Do new immigrants pay arnona?
Yes, but at a substantially reduced rate during your first years as an oleh chadash. The discount must be applied for at the municipality and is not granted automatically. Bring your teudat oleh and lease or ownership documents.
Is arnona included in rent?
Usually no. The Israeli norm is that the tenant pays arnona separately to the municipality, in addition to monthly rent. Always check the lease — Israeli rental contracts will explicitly state whether arnona is included or paid separately.
Can you negotiate arnona?
The base rate is set by the city and not negotiable. However, you can appeal the measured size of your property if you believe it’s incorrect — this is the most common successful arnona appeal. You can also apply for any discount category you qualify for, which often substantially reduces the bill.
What happens if you don’t pay arnona?
The municipality will first send reminder notices. If unpaid, they can place a lien on the property, refer the case to the hotza’a la-poal, and ultimately freeze bank accounts or seize assets. Late fees and interest accumulate. If you can’t afford the bill, apply for a hardship reduction rather than ignoring it.
Does arnona apply to vacation homes owned by foreigners?
Yes, and increasingly at higher rates. Many cities now charge a premium for properties that are unoccupied for most of the year. If you own a second home in Israel and don’t live there full-time, check with the municipality about whether your property is classified as residential or as a “second home” for arnona purposes.
How is arnona on a balcony calculated?
Most municipalities include balconies, storage rooms, and parking spaces in the arnona-registered area, sometimes at the same rate as interior space and sometimes at a reduced rate. This is why the “arnona size” of an apartment is often larger than the “net” size on a real-estate listing.
Bottom line
Arnona is a meaningful and recurring cost — and an easy one to underestimate when you’re focused on purchase price and mortgage. Before you buy or rent in any city, get the actual arnona figure on the specific apartment, not just the citywide average. If you’re an oleh, apply for your discount in the first year. If you’re a foreign buyer with a property that won’t be occupied year-round, confirm the rate classification before you close.
Want help comparing cities by total cost of ownership, including arnona? Browse our property listings in Netanya, Jerusalem, Tel Aviv, or Ra’anana — or contact us for a property-specific arnona estimate before you put in an offer.
