Cost of Living in Israel

This guide was written prior to the October 2023 escalation of hostilities between Israel and the Palestinian territories. The ongoing conflict has markedly affected the safety and advisability of travel to the region. Please consult with relevant authorities and exercise extreme caution when considering travel to Israel and the surrounding areas.

The cost of living in Israel varies depending on where in the country an expat decides to settle and what type of lifestyle they aspire to. Urban centres are pricier than desert outposts or mountain towns. Tel Aviv, Israel’s most cosmopolitan destination, is ranked as one of the most expensive in the world, comparable to cities like San Francisco, US and Dubai, UAE.

While wages in Israel may seem competitive internationally, purchasing power is often diminished by the high cost of living, despite the government offering numerous incentives and salary subsidies to new Jewish immigrants following the process of aliyah (the right of return). Additionally, many expats feel that taxes in Israel are exorbitantly high, with both import and excise taxes leaving buyers bearing the brunt of costs.

Cost of accommodation in Israel

The cost of accommodation in Israel varies depending on location, but it will most likely be an expat’s most significant expense.

As in many bustling urban centres worldwide, in cities like Tel Aviv, the demand for housing often outpaces the available supply. Construction worker shortages further limit new housing development. The lack of an adequate transport system also means that people want to live close to the city centre and to work. If you choose to live in Tel Aviv’s centre, you will pay dearly for your accommodation.

That said, for the wallet-weary, house-sharing is still a popular option and a great way to save money for those who don’t mind living with someone else.

Accommodation in Israel
Working in Israel

Cost of transport in Israel

Maintaining a car in Israel is highly expensive. The Israeli government does offer benefits to new expats who buy a car, but there are stipulations relating to the number of years the car must be owned and the number of people who can drive it. Petrol is becoming extremely expensive, and Israel has some of the highest taxes on buying vehicles.

Most locals and expats use public transport, primarily trains and buses, to get around in Israel. Recent government reforms have aimed to make public transport more affordable and accessible. Fares vary depending on distance and the route travelled. Individual intercity taxis can be expensive, but they can be a good option for getting around in a large group.

Public Transport in Israel

Cost of groceries in Israel

Groceries in Israel are costly and are among the most expensive in the world. Items like fruit, milk, bread, cheese, and diapers are among the most costly. You can reduce your expenses by purchasing in bulk and buying seasonal produce. Visiting one of Israel’s many markets is also a sure-fire way to get fresh produce at low prices.

Some of the most affordable supermarkets in Israel include Rami Levy and Victory. If you have a few bucks to spend, you can visit Shufersal or Mega for speciality goods at a premium.

Cost of entertainment and eating out in Israel

The cost of food in Israel is reasonable if eating in, but expensive if dining out. Thankfully, Israeli shopping culture supports haggling, so bargains can be found at markets. Evening entertainment can be costly, including going out for dinner or indulging in some after-work drinks. Tickets for the cinema, music concerts or other entertainment avenues are similarly pricey.

Cost of education in Israel

While Israel offers free primary and secondary education for all children, most expat parents enrol their children in international schools. This is because the language of instruction in Israel’s schools is Hebrew, which may be difficult for older expat children. Those with young children who are planning to stay in Israel long-term should consider enrolling them in public schools, as they are likely to learn the language faster.

International schools are a great alternative for non-Hebrew-speaking children since they offer programmes in languages such as English, French, and German. The cost of international schools is fairly high, but these institutions tend to offer globally recognised curricula and a wide range of extracurricular activities, which make them worth the cost. Parents moving with children are encouraged to negotiate an education allowance as part of their relocation contract to help offset some costs.

Education in Israel
International Schools in Israel

Cost of healthcare in Israel

Expats earning a salary and having residency in Israel will have access to high-quality healthcare in the country. If you work in the country, you will likely pay a health insurance tax to contribute to the public healthcare system, which covers all basic treatments.

It’s recommended that you secure additional private health insurance to cover elective surgeries and other procedures not covered by the system. The cost of health insurance will vary based on individual lifestyle habits, age, and coverage level. Generally, policies with broader coverage come at higher prices.

Healthcare in Israel

Cost of living chart for Israel

Prices are listed in Israeli shekels (ILS) and may vary depending on product and service provider. The list below shows average prices for Tel Aviv in September 2025.