Arnona: Tel Aviv's municipal tax for Americans

Arnona is the municipal tax every Tel Aviv home pays, and if you rent, the bill almost always goes to you, not your landlord.

The short version

Arnona is charged per square meter, at a rate that depends on your neighborhood's zone, the building type and the apartment's size [2][4].
Tenants usually pay. Put the account in your name the week you move in [2][3].
New immigrants can get up to 90% off for 100 m² (about 1,075 sq ft) for 12 of their first 24 months in Israel, but you have to apply [3][5].
Pay once a year by January 31, or in six bimonthly installments [2].
Think the bill is wrong? File an objection (hasaga) with the city's arnona department. Watch the deadline [6].

USD conversions in this guide use the European Central Bank reference rates of October 29, 2026 (about ILS 3.12 per USD, a cross rate from the ECB's euro rates).

How it compares with property tax back home

Stateside, property tax goes to the owner and is based on what the house is worth. Arnona is different on both counts:

	US property tax	Tel Aviv arnona
Who pays	The owner	The "holder," usually the tenant if you rent [2][3]
What it's based on	Assessed value	Square meters, zone, building type and use [2]
Who sets it	County, city, school district	The municipality, within national rules [4]
How often	Usually twice a year or through escrow	Yearly or every two months [2]
Water	Separate bill	Separate charge, through the water utility Mei Avivim [2]

The upside: arnona doesn't jump just because Tel Aviv apartment prices do. The downside: a big apartment in a top zone costs a lot, whatever its condition.

How your bill is calculated

The Tel Aviv-Yafo municipality says the amount depends on the unit's size, location, type and use, charged per square meter, with each area's rate based on building classification and zoning [2].

Zones and building types

Every year, the city council approves an arnona order (tzav arnona) that sets the rates. The explanatory notes for the 2027 order, published in June 2026, say the 2027 rates equal the 2026 rates plus a 3.05% update under the national formula [4]. They also propose moving several areas into the most expensive residential zone, including parts of Jaffa, so check your street if you live there [4].

The 2027 order's residential table sets rates by building classification and zone, with separate bands for apartments up to 140 m² (about 1,500 sq ft) and over 140 m², and for villas [7]. Residential rates in that table range from roughly ILS 48 to ILS 144 per m² a year (about USD 15 to USD 46), depending on the band [7].

A ballpark example

Here's a rough illustration, not a quote. A 70 m² (about 750 sq ft) apartment billed at ILS 80 to ILS 115 per m² would pay about ILS 5,600 to ILS 8,050 a year (about USD 1,800 to USD 2,585). Your actual rate is on your bill and in the arnona order, which you can look up by your property's classification.

How square meters are counted

Israeli apartment listings often quote a size that's different from what the city bills you for. The arnona order defines what counts, including some shared areas, so the city's number may not match your lease [7]. If the billed area looks too high, measure it. A wrong area is one of the standard grounds for an objection.

Moving in: put the account in your name

The city is clear that liability follows the registered holder. If no one tells the city about a change, the person on the account stays liable, even after moving out [2]. A tenant with a lease of at least 12 months can be the registered holder once notice is filed [2].

On move-in day, read the meter and take photos. You'll want them for the water account too.
Ask the landlord for the last arnona bill and the property's account number.
Transfer the account to your name on the city's website or at the Municipal Service Center, 69 Ibn Gvirol Street, by Rabin Square [1][2]. Bring your lease, ID and the old bill. Nefesh B'Nefesh notes this also protects you from a previous tenant's debts [3].
Choose how you'll pay (see below).
Apply for any discounts at the same time. Most aren't retroactive.
When you move out, send written notice so the account comes off your name [2].

The city's 106 hotline handles municipal questions, and the arnona department is reachable at 03-7244444 (ext. 1) or *3013 [2].

Discounts, including for new immigrants

Tel Aviv lists arnona discounts for new immigrants, senior citizens, single-parent families, disabled residents and soldiers, among others. You apply with ID and supporting documents at the Municipal Service Center or online [2].

The olim discount

National rules let municipalities give new immigrants up to 90% off the arnona on 100 m² (about 1,075 sq ft) of their apartment, for 12 months within the first 24 months after aliyah [3][5]. Each municipality sets its own rate, so the discount can vary by city [5]. Tel Aviv's English pages list new immigrants as eligible but don't state its percentage, so confirm the current Tel Aviv rate with the arnona department [2].

For the 70 m² example above, a 90% discount would bring the bill down to roughly ILS 560 to ILS 805 for that year (about USD 180 to USD 260).

Key conditions, according to Nefesh B'Nefesh and Kol Zchut [3][5]:

Who: olim under the Law of Return, including citizens who came as immigrants (ezrachim olim). Returning residents (toshavim chozrim) and returning minors (ktinim chozrim) generally aren't covered.
When: pick your 12 months within the first two years, counted from your registration or immigrant certificate. It isn't retroactive, so don't wait [3].
Where you live: you need a lease of at least 12 months or proof of ownership [3].
Sharing: in a shared apartment, the discount is prorated to your share [3].
Moving cities: if you used the discount in another city, you'll need a letter showing you didn't get it there [5].

To apply, bring your lease, your Teudat Zehut (ID card), your immigrant certificate (teudat oleh or teudat zakaut), the latest arnona bill and your bank details [3].

Other discounts

After your olim year, you may qualify for income-based discounts, discounts for seniors on certain pensions, and others [2][5]. It never hurts to ask.

Paying the bill

Tel Aviv offers several ways to pay [2]:

Option	How it works
Annual prepayment	Pay the whole year by January 31
Six bimonthly payments	Due by the end of each odd-numbered month
Standing order (horaat keva)	Bank debit on the 3rd of every other month, or bimonthly credit card charges
One-off payments	Online by credit card, at the postal bank, or in cash or by check at the Municipal Service Center or a post office

Late payments accrue interest of 0.5% a month, and the city can take legal steps, including seizing bank accounts, for long-term debts [2]. You can also sign up to get your bill by email through the city's DigiTel resident program [2].

One US tax note: renters can't deduct arnona on a US return. If you own your Tel Aviv apartment, current US rules on deducting foreign real property taxes are tight, so a US expat tax preparer can check your situation.

Objecting to a bill

Israeli law lets you file an objection (hasaga) with the city's arnona manager. The standard grounds are:

the property is in the wrong zone
the area or classification is wrong
you're not the holder of the property

Under the national arnona appeals law, objections generally have to be filed within 90 days of receiving the bill. If you disagree with the manager's answer, you can take it to an appeals committee (vaadat erer), and from there to court. The Tel Aviv municipality's objections page has the forms and contacts [6].

Keep paying while you object, so you don't rack up interest. A complaint that the tax is simply too high isn't grounds for an objection.

Comparing arnona bills between neighborhoods? Other renters in our community group for Americans in Israel are happy to share theirs.

Arnona in Tel Aviv: how the city tax is calculated, cut and paid