Property tax (Arnona), fees and payments to the municipality
Arnona is a local tax on property, typically imposed on the holder according to rules.
The bill is affected by area, classification, use and location according to the authority’s order. There are discounts for eligible persons. Separately there may be fees and levies, such as licensing or development, when the legal conditions apply. A water bill is not simply another arnona, and a homeowners’ association payment is not a municipal tax. To compare housing costs it is useful to convert yearly or bi-monthly charges into a monthly average, without losing the actual payment dates.
In the exercise: 80 sq.m. times an imaginary annual rate of 60 ₪ per sq.m. = 4,800 ₪ per year, which is an average of 400 ₪ per month before discounts.
Is 60 ₪ per sq.m. in the example a rate for every city?
Ministry of the Interior · Arnona guide ↗Check your understanding
Is 60 ₪ per sq.m. in the example a rate for every city?
- No, it is an imaginary figure and the charge depends on the local ordinance
- Yes, always
- It is the VAT rate
Answer and explanation
No, it is an imaginary figure and the charge depends on the local ordinance. Check the arnona ordinance, the taxable area, the classification and the discounts for the property.
Continue learning
Where do our taxes go? — A tax is a compulsory payment collected by law and helps finance public activities and services.
VAT: the price before and after — Value added tax is a tax on transactions that are liable for it. In the consumer price it is usually already included.
Gross, net and tax brackets — Gross is the amount before deductions; net is the amount that remains after the relevant deductions.