Arnona (Property Tax) Explained for Olim

Arnona is Israel's municipal property tax, paid by whoever occupies the property — whether you own or rent. It's collected by your local municipality (iriya) and funds local services: garbage collection, street lighting, parks, and schools.

Unlike property tax in the US or UK, Arnona is based on the size of your apartment (square meters), not its market value. Rates vary by city, neighborhood, and property type.

Payment is bi-monthly, and most municipalities offer a discount for annual upfront payment. You can also set up automatic bank transfers (hora'at keva) for convenience.

Each municipality sets its own rates per square meter, categorized by zone and property usage (residential, commercial, etc.). Tel Aviv's residential rates range from roughly 60-120 NIS per square meter per year, while peripheral cities charge less.

Your bill depends on: (1) apartment size in square meters as registered with the municipality, (2) your zone classification within the city, (3) the floor you're on in some municipalities, and (4) whether it's residential or mixed-use.

Important: verify that the municipality has the correct apartment size on file. If your apartment is registered at 90 sqm but you're being charged for 110 sqm, you're overpaying. Request a measurement review if needed.

New immigrants are entitled to a 90% discount on Arnona for the first 12 months after aliyah. This is one of the most valuable olim benefits — it can save 5,000-15,000 NIS depending on your apartment size and city.

To claim: visit your local municipality office with your te'udat oleh (immigration certificate) and proof of address. Some municipalities allow online applications. Apply as soon as you move in — the discount typically doesn't apply retroactively.

After the initial 12 months, additional discounts may be available based on income level, disability status, or being a single parent. Check with your municipality for a full list of eligible reductions.

Paying full price as a renter when you're eligible for discounts: many landlords include Arnona in the rent but claim the discounts themselves. Make sure you're registered as the occupant if you want to claim your own discounts.

Not updating the municipality when you move: if you don't officially register your move-out, you may continue to be charged for your old address. Always file a change of address with the iriya.

Ignoring the bill: unpaid Arnona accumulates interest and can eventually result in legal action. If you're struggling to pay, contact the municipality about payment plans — most are accommodating.