The Complete Guide to the Cost of Living in Israel (2025 Edition)

Israel is one of the most expensive countries in the world, with a particularly high cost of living in Tel Aviv, Jerusalem, and Herzliya. However, costs vary significantly depending on location, lifestyle, and income level.

This guide provides a detailed breakdown of expenses in Israel, covering housing, groceries, transportation, healthcare, utilities, and entertainment. Whether you are an Oleh (new immigrant), a foreign worker, a student, or an expat, this guide will help you plan your budget for living in Israel.

1. Overview of the Cost of Living in Israel

📊 How Expensive is Israel Compared to Other Countries?

• Tel Aviv is ranked among the top 10 most expensive cities worldwide.

• Israel is more expensive than many European countries, including Italy, Spain, and Portugal.

• The cost of living is comparable to New York and London but salaries are lower on average.

• Government subsidies help lower costs for healthcare and public transport, but housing and food remain expensive.

💰 Average Monthly Cost for a Single Person (Without Rent)

Expense Category Tel Aviv Jerusalem Haifa Be’er Sheva Food & Groceries ₪1,800 - ₪2,500 ₪1,500 - ₪2,200 ₪1,300 - ₪1,800 ₪1,200 - ₪1,700 Public Transport ₪215 - ₪300 ₪215 - ₪300 ₪200 - ₪280 ₪180 - ₪250 Utilities (Electricity, Water, Gas, Internet) ₪600 - ₪1,000 ₪500 - ₪900 ₪450 - ₪800 ₪400 - ₪750 Health Insurance (Basic Kupat Cholim) ₪250 - ₪400 ₪250 - ₪400 ₪250 - ₪400 ₪250 - ₪400 Entertainment & Eating Out ₪1,000 - ₪2,500 ₪800 - ₪2,000 ₪600 - ₪1,500 ₪500 - ₪1,200 Total (Excluding Rent) ₪4,000 - ₪6,500 ₪3,500 - ₪5,800 ₪3,000 - ₪4,700 ₪2,700 - ₪4,300

2. Housing Costs in Israel

🏠 Rent Prices (2024 Estimates)

Rent is the biggest expense for most people in Israel.

Apartment Type Tel Aviv Jerusalem Haifa Be’er Sheva 1-Bedroom (City Center) ₪6,500 - ₪9,000 ₪4,500 - ₪7,000 ₪3,500 - ₪5,500 ₪2,500 - ₪3,800 1-Bedroom (Outside City Center) ₪5,000 - ₪7,500 ₪3,500 - ₪5,500 ₪3,000 - ₪4,200 ₪2,000 - ₪3,200 3-Bedroom (City Center) ₪10,000 - ₪15,000 ₪7,000 - ₪12,000 ₪5,500 - ₪8,500 ₪3,500 - ₪5,500 3-Bedroom (Outside City Center) ₪7,500 - ₪12,000 ₪5,000 - ₪8,500 ₪4,500 - ₪7,000 ₪3,000 - ₪5,000

📌 Additional Housing Costs:
✔ Arnona (municipal tax) – ₪500 - ₪2,000/month depending on apartment size.
✔ Utilities (Electricity, Water, Gas, Internet) – ₪600 - ₪1,200/month.
✔ Security deposit – Usually 3 months’ rent upfront.
✔ Real estate agent fees – 1 month’s rent commission.

📌 Cheaper Cities for Rent:

• Haifa, Netanya, Rishon LeZion – More affordable alternatives near Tel Aviv.

• Ashdod, Be’er Sheva – Lower rental prices with a growing high-tech industry.

3. Food & Grocery Costs in Israel

Israel has high grocery prices, particularly for dairy, meat, and imported products. Shopping at markets (shuks) and discount supermarkets can help reduce costs.

🛒 Monthly Grocery Costs for a Single Person

Item Price (₪) Bread (loaf) ₪7 - ₪15 Milk (1 liter) ₪6 - ₪10 Eggs (dozen) ₪15 - ₪30 Chicken breast (1 kg) ₪30 - ₪50 Ground beef (1 kg) ₪50 - ₪80 Rice (1 kg) ₪10 - ₪20 Tomatoes (1 kg) ₪6 - ₪15 Apples (1 kg) ₪8 - ₪20

📌 Best Supermarkets for Budget Shopping:
✔ Rami Levy – Discount supermarket.
✔ Shufersal Deal – Mid-range pricing.
✔ Osher Ad – Bulk discount store, like Costco.
✔ Mahane Yehuda Market (Jerusalem) – Great for fresh produce at lower prices.

4. Transportation Costs in Israel

Israel has an efficient public transport system, but car ownership is very expensive due to taxes and fuel prices.

🚇 Monthly Transportation Costs

Mode of Transport Tel Aviv Jerusalem Haifa Bus/Light Rail (Monthly Pass - Rav Kav) ₪215 - ₪300 ₪215 - ₪300 ₪200 - ₪280 Train (Tel Aviv - Haifa, one way) ₪28 - ₪35 ₪25 - ₪30 ₪25 - ₪30 Taxi (Short Ride, 5 km) ₪35 - ₪60 ₪30 - ₪50 ₪25 - ₪40 Gasoline (per liter) ₪7.00 - ₪8.50 ₪7.00 - ₪8.50 ₪7.00 - ₪8.50

📌 Tip: A Rav Kav card provides discounts on public transport.

5. Healthcare Costs in Israel

Israel has universal healthcare, but there are out-of-pocket expenses.

✔ Public Health Insurance (Kupat Cholim) – ₪250 - ₪400/month.
✔ Private Health Insurance – ₪300 - ₪1,000/month for extra services.
✔ Doctor visit (without insurance) – ₪250 - ₪500 per visit.

📌 Tip: New immigrants (Olim) receive 6-12 months of free health insurance.

6. Entertainment & Lifestyle Costs

🍽️ Restaurant & Nightlife Prices

Item Price (₪) Fast food meal ₪45 - ₪70 Mid-range restaurant (per person) ₪80 - ₪150 Fancy restaurant (per person) ₪200 - ₪400 Cappuccino ₪15 - ₪25 Beer (0.5L) ₪25 - ₪35 Cocktail ₪50 - ₪80

📌 Tip: Many restaurants offer discounted business lunches (ארוחת עסקית) during the day.

Final Thoughts: How Expensive is Israel?

✔ Most expensive cities: Tel Aviv > Jerusalem > Herzliya
✔ More affordable cities: Haifa, Ashdod, Be’er Sheva
✔ Biggest expenses: Rent & food

Would you like help finding affordable housing, budgeting tips, or job opportunities? 🚀