Property and Business Tax: Who Among Israelis Will Get a Reduction in Arnona

Israel's Interior Ministry has received requests from municipalities to raise the municipal property tax (arnona) beyond the 3.05% indexation for 2027. Nazareth demands an additional 30%, leading to a total increase of 33.05%. Other cities request between 4% and 10%. Or Yehuda and Ashkelon propose reductions. Business unions oppose the hikes. New bills are expected from January 1, 2027.

Israel's Interior Ministry has received a wave of requests from municipalities for unscheduled increases in the municipal property tax (arnona), on top of the mandatory 3.05% indexation starting in 2027. In some cities, the cumulative increase could reach 33%. Among the leaders is Nazareth, which requested an additional 30%, bringing the total to 33.05% for all categories of taxpayers. Azur asks for 10% for commerce and services, Ramat Gan for 6.95% (total 10%), Ariel for 5.15% (total 8.2%), and Ashdod for 4.45% (total 7.5%). Gan Yavne sees a 10% increase, Kiryat Malakhi up to 8.05% for commercial entities, Rehovot 8% for housing, Eilat 4% for tourist accommodation and between 1.6% and 8.15% for hotels. Sakhnin and Tel Mond limit themselves to 5%, and Ness Ziona to 4.55%. Exceptions: Or Yehuda asks to reduce the business arnona by 2-12%, and Ashkelon by 3.05% for commercial properties. The head of the Federation of Chambers of Commerce, Shahar Turjeman, criticizes the system, noting that commercial arnona is already 40% higher than in Europe. Ramat Gan justifies that the increase applies only to large financial institutions near the stock exchange. Updated bills will arrive from January 1, 2027.