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Arnona is the municipal tax in Israel, imposed by local authorities on residential and commercial properties. The tax is usually paid by the property occupant, whether owner or tenant, and is assessed annually, though payment can be made in installments.
Each municipality sets its own rates within guidelines approved annually by the Ministries of Interior and Finance. These ministries define minimum and maximum allowed rates, while municipalities pass an annual Tax Order specifying rates per square meter by property type and zone.
Who Pays the Arnona?
The responsibility for paying Arnona generally lies with the long-term occupant of the property. Accordingly, once a lease agreement is signed by both the Lessor and the Lessee, it must be submitted to the municipality via an online form. Upon registration, the property is officially listed under the Lessee’s name, and the financial obligation for Arnona becomes their personal responsibility. Failure to pay the tax may result in enforcement actions by the municipality.
How is Arnona Billed?
The Arnona bill is issued each January for the entire calendar year (January through December). This means the full amount is technically due in January. While it is possible to spread the payments over the year, interest will accrue from January until the outstanding amount is paid in full or in part.
You may also set up automatic monthly payments via a local bank account. Please note that this option is only available if you hold an Israeli bank account.
Alternatively, you can visit the municipality in person to request a customized payment schedule, and they will issue divided bills according to your preference.
How is Arnona Calculated?
Unlike property taxes in many countries, Arnona is not based on market value. Instead, it is calculated based on:
Property size (in square meters) – The more space, the higher the tax.
Property use – Residential, commercial, industrial, etc. Each use has different rates.
Location (zone) – Cities divide neighborhoods into zones (e.g., A, B, C) with differing rates.
Property type or quality – For example, substandard or old housing might receive reduced rates.
Each city sets its own specific rate per m² based on these factors.
Jerusalem has a detailed and layered Arnona system. Jerusalem charges Arnona based on property size, type, and location. For residential properties, the city divides areas into three main zones (A, B, C):
Zone A : Affluent or centrally located neighborhoods like Rehavia, German Colony, and Talbiya.
Zone B : Middle-class neighborhoods.
Zone C : Lower-income or peripheral neighborhoods, including parts of East Jerusalem.
2025 Residential Arnona Rates (per m² annually):
Zone A:
Up to 120 m²: ₪105.93
Above 120 m²: ₪127.84
Zone B:
Up to 120 m²: ₪84.96
Above 120 m²: ₪116.16
Zone C:
Up to 120 m²: ₪63.21
Above 120 m²: ₪89.62
The size tier distinction means larger properties pay more per meter for the area above 120 m².
Example, a 150 m² apartment in Zone A would pay:
120 m² × ₪105.93 = ₪12,711.60
30 m² × ₪127.84 = ₪3,835.20
Total: ₪16,546.80
In contrast, the same-sized apartment in Zone B would be charged significantly less due to lower per-meter rates.
Neighborhoods & Areas Classification
Jerusalem’s zoning is defined by a list of specific streets and neighborhoods assigned to each zone. Here is a list of neighborhoods and their Zones:
Zone A includes the following neighborhoods and areas:
Sheikh Jarrah, Abu Tor, German Colony, Rehavia, Talbiya, Bak’a, Yemen Moshe, Mamilla (King David St.), West Jerusalem City Center, KIng George St, Jaffa St., Even Yehuda St., Helineh Hamalka St., Rav Kok St., Hanive'm St, Arnona, French Hill (Mount Scoups and Giva’t Shapira), Beit Hanina (Ramallah Road)
Zone B includes the following neighborhoods and areas:
Hebron Road, Shu’fat, Beit Hanina, Wadi el-Joz, Salalh e-Din St., Beit Lehem Road
Zone C includes the following neighborhoods and areas:
Morasha Musrara, Beit Safafa, Mount of Olives, mon Hatzadik,
How is Register Your Name at the Arnona department?
To register your name at the Municipal Property Tax Department (Arnona), please read this article .
Arnona Discount For Diplomats
Special arrangements apply to diplomats. For more detailed information on this process, please refer to this article .