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 rises aimed solely at businesses. The most significant request comes from Nazareth, which seeks a 33.05% overall increase, the highest among all municipalities.

In contrast, Ashkelon and Kfar Vradim are the only municipalities requesting a general reduction in property tax, though Ashkelon's cut does not apply to all property types. Other notable requests include increases ranging from approximately 4% to over 13% in cities such as Ashdod, Herzliya, Rehovot, and Ramat Gan. Some municipalities, like Tamra, have also included planned hikes for 2028 in their submissions.

Shahar Turgeman, president of the Federation of Israeli Chambers of Commerce, criticized the trend sharply, stating that "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 raising taxes over improving efficiency, which harms business growth and employment.

All these requests are currently under review by the Ministry of the Interior, which must approve or reject each individually. 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 hike.

Key municipalities requesting notable increases include Nazareth (33.05%), Kiryat Arba (10%), Gan Yavne (10%), and Ramat Yishai (13.43%). The requests reflect a broader fiscal challenge facing local governments as they seek additional revenue sources beyond the automatic tax adjustments.