Property tax rates in Tel Aviv are poised for a dramatic 8.8% spike starting January 1, 2025, surpassing the nationwide average increase. This anticipated surge stems from the state's contribution to the city's Metro rail project. It is noteworthy that the 2025 property tax order (Arnona) has yet to receive approval but will be presented for ratification on Monday.
The release of the Consumer Price Index for April revealed the impending increase encompasses a nationwide "automatic pilot" rate adjustment of 5.29% determined by the Ministry of Interior, coupled with an additional 3.5% levy specific to Tel Aviv residences to partially finance the city's share of the Metro project costs – a tax effectively imposed on the municipality by the state.
Consequently, this increase is projected to inflate overall property tax payments by 1.9 billion shekels in 2025, with households shouldering an additional 0.9 billion shekels and the business sector bearing the remaining one billion shekels.
