Arnona in Israel to rise again: several cities seek increases of up to 33%

In 2027, the municipal tax (arnona) in Israel will automatically increase by 3.05% due to indexation. Many cities have requested additional increases, with Nazareth seeking up to 33%. Business associations criticize the plans, pointing to the high tax burden.

In 2027, the municipal property tax (arnona) in Israel will automatically increase by 3.05% in accordance with the indexation law. However, many municipalities consider this insufficient and have applied to the Ministry of Interior for permission to impose additional increases. In Nazareth, the total increase could reach 33.05% for both residential and commercial properties. Other cities, including Ramat Gan, Ashdod, Ariel, and Rehovot, have requested increases ranging from 4.55% to 13.05%. The Federation of Israeli Chambers of Commerce and the Manufacturers Association criticized the plans, stating that the tax on commercial property in Israel is already 40% higher than in Europe. Chamber President Shachar Turjeman proposed linking increases to evidence of municipal efficiency. Some cities, such as Or Yehuda and Ashkelon, are instead requesting a reduction in the business tax. The Ramat Gan municipality explained that the additional increase of 6.74% applies only to large companies in the stock exchange complex, not to residents.