Arnona is Israel’s municipal property tax, and understanding how it works is essential for anyone buying or renting in Tel Aviv. Unlike property taxes in many countries, arnona is paid by occupants rather than owners, which means both buyers and renters need to budget for this ongoing expense. This guide explains what arnona is, how it’s calculated, current rates in Tel Aviv, and what you can expect to pay.
What Is Arnona?
Arnona is a local tax collected by Israeli municipalities to fund city services including garbage collection, street maintenance, parks, and local infrastructure. Every residential and commercial property in Israel is subject to arnona, calculated based on the property’s size in square meters, location, and use type.
In Tel Aviv, arnona rates are set annually by the municipality and rank among the highest in Israel, reflecting the city’s premium services and infrastructure. The tax applies whether you own or rent — in rental situations, the tenant typically pays arnona directly to the municipality unless the lease states otherwise. For international buyers unfamiliar with Israeli property costs, arnona often comes as a surprise, so factoring it into your budget from day one is critical. Our guide to buying property in Israel as a foreigner covers other costs you should anticipate.
How Is Arnona Calculated in Tel Aviv?
Tel Aviv calculates arnona using three main factors:
- Size: The property’s built area in square meters (including balconies at partial rates)
- Zone: Tel Aviv is divided into pricing zones, with central and beachfront areas commanding higher rates
- Property type: Residential, commercial, and office spaces have different rate structures
The municipality publishes rate tables annually. For residential properties, you’ll see a per-square-meter rate that varies by zone. Balconies, storage rooms, and parking are often calculated at reduced rates. Properties in premium neighborhoods like Neve Tzedek and along Rothschild Boulevard typically fall into the highest arnona zones, while areas like Florentin may have slightly lower rates.
Current Arnona Rates in Tel Aviv (2026)
Residential arnona rates in Tel Aviv typically range from ₪85-150 per square meter annually, depending on location. Here’s what that means in practice:
- 60 sqm apartment: ₪5,100-9,000 per year (₪425-750/month)
- 80 sqm apartment: ₪6,800-12,000 per year (₪565-1,000/month)
- 100 sqm apartment: ₪8,500-15,000 per year (₪710-1,250/month)
- 130 sqm apartment: ₪11,000-19,500 per year (₪920-1,625/month)
Premium zones like beachfront properties and Lev Ha’ir sit at the higher end, while neighborhoods further from the center like Old North may have moderate rates despite being highly desirable.
Arnona by Neighborhood
Rates vary across Tel Aviv’s distinct neighborhoods. Here’s a general breakdown:
Higher Arnona Zones:
- Neve Tzedek — historic luxury, premium rates
- Rothschild Boulevard — central prestige address
- Lev Ha’ir — Heart of the City
- Beachfront areas — sea view properties pay top rates
Moderate Arnona Zones:
- Old North — residential family area
- City Center — urban core
- Kerem HaTeimanim — authentic Yemenite Quarter
Lower Arnona Zones:
- Florentin — creative, emerging neighborhood
- Southern Tel Aviv areas
For a full comparison of neighborhoods and what each offers, see our Tel Aviv neighborhoods guide.
Who Pays Arnona — Owner or Tenant?
In Israel, the occupant pays arnona, not the property owner. This means:
- If you buy: You pay arnona from the day you take possession
- If you rent: You typically pay arnona directly (most leases require this)
- If vacant: Owners may receive reduced rates for genuinely empty properties
When you move in, you must register with the Tel Aviv municipality (Iriya) and transfer the arnona account to your name. When you leave, you need to close or transfer the account to avoid ongoing charges. If you’re deciding between renting vs buying in Tel Aviv, arnona applies either way — it’s a cost you can’t escape.
How to Pay Arnona in Tel Aviv
Tel Aviv offers several payment options:
- Monthly direct debit: Most common, automatic bank withdrawal
- Bi-monthly payments: Standard billing cycle if not on direct debit
- Annual payment: Pay the full year upfront (sometimes with small discount)
- Online: Through the Tel Aviv municipality website
Setting up direct debit is the easiest approach and ensures you don’t miss payments, which can result in penalties and interest.
Arnona Discounts and Exemptions
Certain residents qualify for arnona reductions:
- New immigrants (olim): Discounts for the first year
- Seniors: Reduced rates for qualifying elderly residents — helpful for those retiring in Tel Aviv
- Low income: Means-tested reductions available
- Students: Partial discounts in some cases
- Disabled residents: Various exemptions depending on situation
To apply for discounts, contact the Tel Aviv municipality directly with supporting documentation.
Arnona for Buyers: What to Know
If you’re buying an apartment in Tel Aviv, factor arnona into your monthly budget alongside mortgage payments, vaad bayit (building fees), and utilities. For a typical 80-100 sqm apartment in a central neighborhood, expect ₪700-1,200 monthly for arnona alone.
During the purchase process, your lawyer should verify that the seller has no outstanding arnona debts on the property. Any unpaid arnona becomes your responsibility upon transfer. International buyers should also review our complete guide to buying property in Israel and understand Israeli real estate taxes before budgeting.
If you’re financing your purchase, see our mortgage guide for foreigners to understand all the costs involved.
Arnona for Renters: What to Know
Most Tel Aviv leases require tenants to pay arnona directly. Before signing, confirm:
- Current arnona amount for the specific apartment
- Whether the account will be transferred to your name
- Any outstanding balance from previous tenants
Budget arnona as a fixed monthly cost on top of your rent. For a 70-80 sqm apartment, this typically adds ₪500-900 monthly to your housing expenses. See our Tel Aviv rental prices guide for complete cost breakdowns.
Arnona for Investors and Landlords
If you own rental property in Tel Aviv, arnona is typically passed to your tenants. However, for short-term rentals and Airbnb properties, you as the owner pay arnona directly since guests don’t register with the municipality.
Factor arnona into your rental ROI calculations when evaluating investment properties. For hands-off ownership, our property management services can handle arnona payments and other administrative tasks on your behalf.
Arnona vs Other Housing Costs
Arnona is just one component of your total housing costs in Tel Aviv. A complete picture includes:
- Arnona: ₪500-1,500/month depending on size and location
- Vaad bayit: ₪200-800/month for building maintenance
- Utilities: ₪400-800/month for electric, water, gas, internet
- Insurance: ₪100-300/month for contents/building
For a full breakdown of what to expect, see our cost of living in Tel Aviv 2026 guide or explore current real estate prices to understand what you’ll pay for property itself.
Arnona Tel Aviv: Frequently Asked Questions
For a typical apartment, expect ₪500-1,200 monthly depending on size and zone. A 70 sqm apartment in a central area averages around ₪600-800 per month.
Arnona is Israel’s municipal property tax paid by residents to their local city government. The tax funds city services like garbage collection, street cleaning, parks, and local infrastructure. Every occupied residential and commercial property in Israel pays arnona.
In Israel, the occupant pays arnona, not the property owner. If you rent, you typically pay arnona directly to the municipality. If you buy, you pay from the day you take possession of the property.
No, each municipality sets its own arnona rates. Tel Aviv has some of the highest rates in Israel, while smaller cities and towns charge less. Rates also vary by zone within each city.
Yes, certain residents qualify for reductions including new immigrants (olim), seniors, low-income households, students, and disabled residents. Contact the Tel Aviv municipality with documentation to apply.
Arnona is a fixed cost of living in Tel Aviv that every buyer and renter needs to budget for. While rates are non-negotiable, understanding how the tax works helps you plan accurately and avoid surprises. For more on what to expect when purchasing property, see our guide to buying an apartment in Tel Aviv or contact Ronkin Real Estate to discuss your move to Tel Aviv.