Guide to Arnona - Jerusalem Municipal Tax

Arnona - Jerusalem’s Municipal Tax

(Disclaimer: This article is presented as a guide only, you are responsible to find out the details of your liabilities and how to fulfil them. This article was last updated December 2017)

It can be somewhat confusing, since there is a neighbourhood of the same name, but Arnona is the name of the annual municipal tax that has to be paid by property owners/tenants. According to the Municipality Website

“According to the law, the obligation to pay municipal taxes falls upon the holder of the property, i.e. the individual with the closest connection to the property. The term can include: the owners of the property (so long as there is no one with a closer connection), and a renter whose rental agreement is for a period of no less than a year (in short-term rentals, the obligation to pay the Arnona falls on the owner of the property).”

The tax is applied annually to the property based on the secular calendar year (i.e. January 1 through to December 31). There are different rates for business and residential properties, though we will deal only with the residential rates in this article.

The Municipality will send you a letter informing you of your liability for the coming year. If you are moving in mid-year, you need to arrange for the bill to be transferred to your name.

How is the Charge Calculated?

Arnona is calculated based on the area (m2) of your property that is registered with the Municipality, with a number of adjustments. Currently, there are four “zones” (A - D) that the charge varies for, plus a few variations based on the nature of the apartment itself.

The zones are specified in the annual tax document released by the Municipality. Each Zone has a list of streets and neighbourhoods that fall within each zone, thereby setting the rate for your home.

Main Rates for 2018 

Building Type

Description

Zone

A /m2

B /m2

C /m2

D /m2

1

Apartment of more than 120 sqm

110.03

99.99

77.14

63.05

2

Apartment of up to 120 sqm

91.17

73.13

54.42

39.27

3

Apartment with external/joint lavatories

64.12

47.68

39.27

39.27

4

Apartment in building made of wood or tin

39.27

39.27

39.27

39.27

Discounts

Early Payment - Payment in advance, on time, will get you an automatic 1% discount.

Circumstantial - The Municipality has a number of discounts depending on your income, whether you are in the army/national service, etc… for more information, check out their Discounts page for details for each type.

Installments - If you pay by installments, you will receive a 0.75% discount on your payments

Payment

Pay Online - You can pay online at the Municipality’s website.

Standing Order - You can make an arrangement with your bank to pay your Arnona bill via a standing order. This spreads the cost over 12 monthly payments. You are still charged for linkage differentials, but you get a 0.75% discount.

Monthly Salary - There’s a way to get your Arnona bill deducted automatically from your paycheck. Terms are the same as for the Standing Order option.

Credit Card Installments -You can pay by installments on your credit card, but there’s no discount and you will be charged interest and linkage differentials.

Post Dated Cheques - You can provide 12 post-dated cheques/checks (depending where you’re from) but you won’t receive any discount, and you will be charged for interest and linkage differentials.