121 Israeli Municipalities Request Exceptional Property Tax Hikes for 2027, Nazareth Seeks 33% Increase

Ahead of 2027, 121 local authorities across Israel have submitted exceptional requests to raise property tax rates beyond the standard automatic increase of 3.05%. These requests include general hikes affecting all properties, increases targeting residential properties only, and some aimed solely at businesses. The most significant request comes from Nazareth, seeking a 33.05% overall rise, the highest among all municipalities. Conversely, Ashkelon and Kfar Vradim are the only municipalities requesting a general tax reduction.

The requests vary widely, with many municipalities proposing modest increases of a few percentage points above the automatic adjustment, while others seek substantially higher hikes. For example, Kfar Vradim and Ashkelon propose a 3.05% reduction, while cities like Kiryat Arba and Tuba-Zangariyye request 10% increases. Some municipalities have multi-year plans, such as Modiin Regional Council, which has approved gradual business tax hikes through 2031, and Tamra, which includes an additional exceptional increase planned for 2028.

Shahar Turgeman, president of the Federation of Israeli Chambers of Commerce, criticized the trend sharply, stating, "Business owners are not the emergency fund for local authorities, and raising property taxes is not a substitute for responsible management." He warned that many municipalities prefer to increase taxes rather than improve efficiency, which harms business growth and employment.

The Ministry of the Interior is currently reviewing each request individually and will approve or reject them accordingly. Residents and business owners in affected municipalities are advised to monitor their upcoming property tax bills closely, as some could face increases amounting to thousands of shekels annually compared to the routine adjustment.

Key municipalities requesting notable increases include Ashdod (7.5%), Herzliya (4.25% residential), Ramat Gan (10% business), and Ramat Yishai (13.43% business). The final decisions are pending, and the impact will be felt starting in 2027.