Arnona vs. Purchase Tax 2026 – The Differences
Two payments related to property ownership, but completely different in nature, frequency, and the collecting authority — arnona and purchase tax are sometimes confused by new buyers. Here are the main differences.
Purchase Tax — One-Time Payment to the Tax Authority
Purchase tax is paid only once, at the time of purchasing the property, to the tax authority (a national government body). The amount is determined according to progressive brackets based on the value of the property and the status of the buyer (single or additional apartment) — detailed in the specific guides.
Arnona — Ongoing Payment to the Local Authority
Arnona is paid annually (usually in bi-monthly payments) to the local authority where the property is located, and is calculated based on the size of the property (sqm), type of property, and geographical area within the authority. Arnona is paid as long as the property is owned by you — not a one-time payment like purchase tax.
Who Collects and Why It Matters
Purchase tax goes to the state treasury and is intended for general funding. Arnona goes to the local authority and is intended for funding municipal services (education, sanitation, local infrastructure). This is why the amounts of arnona vary significantly between different local authorities — each authority sets its own rate.
Arnona Discounts — What Purchase Tax Doesn’t Have
Unlike purchase tax, where the exemptions are mainly limited to new immigrants and disabled individuals, arnona includes a wider variety of possible discounts: single resident discount, disabled discount, senior citizen discount, discount for large families, and more — depending on the specific local authority's policy.
How It Affects the Overall Purchase Budget
When planning to purchase an apartment, it’s important to also consider the expected annual arnona (part of the ongoing cost of maintaining the property), not just the one-time purchase tax. Differences in arnona between cities can reach thousands of shekels a year — for example, arnona in Ma'ale Adumim may differ from arnona on a similar property in Jerusalem.
What Happens with an Empty or Unused Apartment?
Arnona is also paid on an empty apartment, usually in full (sometimes with a partial discount for a limited period) — unlike purchase tax, which is a one-time event that has already occurred and is not dependent on actual use of the property.
Why It’s Important to Check Arnona Before Purchase, Not Just After
The differences in arnona between different neighborhoods in the same city, and certainly between neighboring cities like Ma'ale Adumim and Jerusalem, can be significant over time — it’s better to check the exact rate and property classification before signing, rather than discovering after the move that the ongoing expense is higher than expected.
Property Classifications That Affect Arnona Amount
Beyond the size of the property, its classification (residential, commercial, offices) and location within the local authority also determine the rate. Two properties of the same size in different neighborhoods of the same city can pay significantly different arnona amounts, depending on the geographical area determined by the authority.
Frequently Asked Questions
Can I appeal an arnona assessment?
Yes — you can submit an objection to the local authority if you believe the charge is incorrect, similar to appealing a purchase tax assessment.
Does arnona change when selling the apartment?
The charge transfers to the new owner from the date of sale — ensure a proper transfer of the arnona account with the local authority at the time of the transaction.
Do new immigrants also receive an arnona discount, not just a purchase tax benefit?
Yes, in most authorities there is a new immigrant discount for arnona, in addition to and separate from the purchase tax benefit.
Related
See also the Complete Guide to Purchase Tax 2026 and the Capital Gains Tax Guide 2026.
Considering Buying or Selling a Property?
Check out properties for sale in Ma'ale Adumim and Jerusalem, and contact the Merkaz HaNekasim team for personal advice.