Are you entitled to an Arnona Discount - Municipal Rates & Property Taxes?
Hebrew: הנחות בארנונה
Municipalities and other local authorities in Israel, give discounts for municipal taxes according to the the laws and regulations of the Ministry of Interior. The following members of the community are entitled to a discount on their municipal taxes (arnona). Amounts vary from area to area, town to town and city to city.
Arnona Discounts for Olim*
Olim are entitled to a discount of between 70-90% on their Arnona payments- on up to 100 sqm - and are entitled to this discount for 12 months either in their first or in their second year of Aliyah. The discount varies from town to town and city to city.
Returning Resident/s - Toshav Hozer/Toshavim Hozrim
Returning residents who are minors, are not entitled to a discount on their arnona
Tax Exemptions for Foreign Residents
Foreign residents, owners of holiday apartments etc., are responsible for the full municipal tax levy. Only if the apartment is unoccupied and completely empty of furniture and possessions, will you be entitled to an exemption from arnona, for a one- time, 6 month period.
Tenant Laws & Regulations
Unless you have a contract stating otherwise, tenants are obliged to pay the full arnona for the entire period of the contract. Should a tenant vacate the rented property and stops paying rent, the tenant is still responsible for paying the tax until the rental contract is officially canceled.
Applying for an Arnona Discount
Before submitting a request for a discount on the municipal tax, the arnona municipal account must be endorsed to the name of the individual requesting the discount, the holder of the asset. For such purpose, the apartment's rent/sale agreement must be submitted. If the apartment or property is rented, attach an additional copy of the rent agreement when submitting the request for a discount. The request must be submitted at your local municipal or regional council office
How Arnona is Calculated
Arnona is calculated based on the size of the dwelling or space: residential or commercial as levied by the local municipality or authority. Neighborhoods are zoned: "A" being in the most affluent areas as well as "B", "C" and "D" in a sliding scale. Each local authority decides how arnona is calculated. Some calculate arnona based only the floor area of the apartment without external and internal walls. Others base it on roof area which includes external and internal walls. Some authorities include your share of the common spaces; the stairwell, elevator, lobby, parking spaces. Balconies, patios, bomb shelters, storage rooms etc.are also included, but generally at a lower rate.
Your Arnona Bill
Some municipal and local authorities combine the water and arnona bill while others have separate bills for each. We have translated an arnona bill from Hebrew to English...
Towards the beginning of January, you will receive an annual arnona bill from your local municipal authority. You can pay your rates and taxes in one lump sum, two equal payments, 3 equal payments or a payment every 2 months.
You can pay your arnona on-line, at the post-office, via your local authorities automated answering service or directly with a customer service representative. You can pay by credit card, check or cash or a stop order via your bank. If you pay your arnona at the bank, you will be charged a handling fee of a few shekels.