Israeli municipal tax to jump by 5%, biggest rise in 17 years

The cost of living in Israel could soon get costlier after the Interior Ministry announced on Tuesday evening that the arnona (municipal tax) rate would rise by 5.29% next year.

This represents the largest jump in arnona cost in over 17 years. In contrast, the Arnona rate rose by 2.68% last year, while in the three years prior, it rose by less than 2%.

The largest rate hike observed in recent years before this week occurred in 2009 when the arnona rates rose by 4.57%.

Local municipalities can request an exception to the updated rate set by the Interior Ministry, meaning some could charge an even higher rate if they receive approval.

The rate is determined automatically by a mechanism introduced as part of the Arrangements Law in 2007. It considers recent changes in the Consumer Price Index and the average annual salary.

Opposition: Government is taking money out of Israelis' pockets

The opposition's Knesset's Finance Committee coordinator, Yesh Atid MK Vladimir Beliak, blasted the government for a false promise to "freeze arnona" before the 2022 election.

"From the government's formation, they promised to freeze the arnona. This recent hike is crazy and brazen, especially as [the government] continues to celebrate their NIS 10 billion coalition funds.

"At least a dozen useless ministers are still walking among us, all of them costing us approximately two billion shekels. Every day this government survives, it harms citizens' security and resiliency and takes money out of their pockets."