What Is Arnona (Municipal Property Tax) in Israel?

Arnona (ארנונה) is the Israeli municipal property tax — the equivalent of council tax in the UK or property tax in the US. It's charged by the local municipality, billed either monthly or bi-monthly, and its rate depends on the property's size, location, and use (residential vs. commercial).

Unlike Mas Rechisha, which is a one-time purchase tax, Arnona is an ongoing cost paid for as long as you own or occupy the property. Rates and exemptions vary significantly between municipalities — Tel Aviv, Jerusalem, and smaller towns each set their own tariffs.

Why it matters for a buyer: budget Arnona into your ongoing cost of ownership, alongside Vaad Bayit fees and utilities. If the property will be rented rather than lived in, confirm who is responsible for payment in the lease.

Source: Israeli Municipalities Ordinance; local municipality tariff schedules