Israel Arnona (Municipal Property Tax) Estimator 2025
Estimate Arnona (Israeli municipal property tax) for 2025. Enter apartment size in sqm and city tier. Typical rates range from 50 to 250 ILS per sqm per year depending on municipality.
Estimate your Arnona (Israeli municipal property tax) for 2025. Arnona rates are set by each municipality and typically range from 50 to 250 ILS per sqm per year.
Estimated annual Arnona
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Monthly Arnona
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Apartment size
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Rate per sqm (midpoint)
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City tier used
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Your breakdown
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How Arnona is set and collected in Israel
Arnona is a local municipal tax set independently by each of Israel’s approximately 250 local authorities. The municipality approves its annual Arnona tariff table each year, which specifies rates per square meter for each property classification. The Israel Ministry of Interior must approve tariff increases above a certain threshold. Payments are typically made directly to the municipality in instalments through direct debit (hoshua automati), the municipal website, post office payment terminals, or in person. Most municipalities send annual Arnona bills in January or February. Residents who believe their classification is incorrect can appeal through the municipal tribunal (vai’ad arnonot), and the appeal process has strict deadlines.
How Arnona affects landlords and tenants
In Israeli residential tenancy law, Arnona during the tenancy period is typically the tenant’s responsibility and is specified in the rental contract. However, when the property is vacant, the Arnona obligation falls to the owner. This creates a gap risk for landlords: any period without a paying tenant still incurs Arnona. Landlords who factor Arnona into their rental pricing should account for the vacancy-period exposure. Some municipalities provide a partial Arnona discount for periods of documented vacancy, but this is not universal and requires an application. The Arnona figure in this calculator represents the annual cost when the property is occupied. For investment-property yield calculations, a conservative budget should assume a few weeks of vacancy per year where Arnona falls on the owner.
Why Arnona rates vary so much across Israeli cities
Arnona rates reflect the local authority’s revenue needs, the property value base in the area, and political decisions about how much of the municipal budget is funded by property tax versus central government transfers. High-demand urban municipalities like Tel Aviv charge higher Arnona partly because property values are high (making the per-sqm tax affordable relative to total costs) and partly because the municipality provides a higher level of urban services. Peripheral municipalities often charge lower nominal rates but may have fewer services. The practical implication for property investors is that Arnona is a material cost that should be included in any yield or affordability calculation and should be researched specifically for the municipality of any intended purchase.
Frequently asked questions
What is Arnona and how is it calculated in Israel?
Arnona is Israel’s municipal property tax, set individually by each local authority (iriya or moetza mekomit). It is charged annually on both residential and commercial properties. For residential properties, Arnona is calculated by multiplying the net floor area of the apartment in square meters by the annual rate per square meter determined by the municipality. The rate varies substantially between municipalities, reflecting local government budgets, property values, and political decisions. The rate also varies by property classification within each municipality, with certain categories such as owner-occupied residential, rental residential, commercial, and industrial each having different applicable rates. Arnona is an annual charge typically paid in instalments throughout the year. Late payment attracts indexation and penalty interest.
How much is Arnona in Tel Aviv and central Israel in 2025?
Tel Aviv has some of the highest Arnona rates in Israel. For a standard residential apartment in Tel Aviv in 2025, the Arnona rate is approximately 150 to 250 ILS per square meter per year, depending on the neighborhood and property classification. A 75 sqm apartment in Tel Aviv would typically pay 11,250 to 18,750 ILS annually in Arnona. Surrounding cities in the Gush Dan metropolitan area such as Ramat Gan, Petah Tikva, Holon, and Bat Yam have rates in a similar range but at the lower end. Herzliya and Ra’anana, which are affluent suburbs, also have relatively high rates. The municipality publishes the rate table (tarif arnona) annually and residents can look up their classification on the municipal website.
What are typical Arnona rates in Jerusalem and other Israeli cities?
Jerusalem’s Arnona rates are somewhat lower than Tel Aviv for comparable residential apartments, typically in the range of 80 to 160 ILS per square meter per year for standard residential properties. Haifa has rates roughly similar to Jerusalem. Smaller cities in the periphery, such as Beersheba, Dimona, Kiryat Shmona, and development towns, have lower Arnona rates, often in the range of 50 to 100 ILS per square meter per year. Very small municipalities or regional councils in rural areas may have even lower rates. The wide variation means that the same 80 sqm apartment can cost anywhere from 4,000 to 20,000 ILS per year in Arnona depending entirely on where it is located.
Are there Arnona discounts or exemptions available in Israel?
Yes. Most Israeli municipalities offer significant Arnona reductions for certain categories of residents. The main discounts available include: retirees and seniors on limited incomes (up to 66 percent reduction in many municipalities), new immigrants (olim hadashim) typically receive a 90 percent reduction for their first year and 66 percent for the second and third year, National Insurance (Bituach Leumi) income-support recipients often receive full exemption, single-parent families may receive partial discounts, and students in registered programs may be eligible for discounts. Applications for discounts must generally be made to the municipal Arnona department and supported with documentation. Discounts are not applied automatically; the resident must apply. Missing an application can mean paying full rate when you would have qualified for a substantial reduction.