Cost Of Living
ISRAEL COST OF LIVING FACTSHEET
Comprehensive Comparison: Israel vs. USA, UK & Canada
**Last Updated: **October 2025
**Currency: **USD (unless otherwise noted) | Exchange Rate: ₪3.70 = $1.00
QUICK REFERENCE SUMMARY
Overall Cost Rankings (Most to Least Expensive)
Category | Ranking |
Housing | NYC > London > Tel Aviv > SF > Vancouver > Toronto > UK Avg > Canada |
Groceries | Israel (+30%) > UK > Canada > USA |
Healthcare | USA > UK/Canada > Israel (dramatically cheaper) |
Transportation | Israel (with car) > UK > Canada > USA > Israel (public transit) |
Dining Out | Major cities similar; Israel competitive |
Education (University) | USA Private > USA Public > UK > Canada > Israel (cheapest) |
Childcare | USA > UK > Canada > Israel (cheapest) |
Israel Overall Position
ï **More expensive than: **Most US cities (except NYC, SF, LA), most UK cities (except London), all Canadian cities
ï **Less expensive than: **NYC, San Francisco, Central London, Zurich, Singapore
ï **Global ranking: **15th-25th most expensive city (Tel Aviv)
1. HOUSING COSTS
Rental Prices (Monthly, USD)
One-Bedroom Apartment - City Center
City | Rent Range | Index vs. Tel Aviv |
Tel Aviv | $1,800 - 2,500 | 100 (baseline) |
Jerusalem | $1,400 - 2,000 | 78 |
Haifa | $1,000 - 1,400 | 56 |
Beer Sheva | $700 - 1,000 | 39 |
|---|---|---|
New York City | $3,500 - 5,000 | 194 |
San Francisco | $3,000 - 4,200 | 167 |
Los Angeles | $2,200 - 3,000 | 122 |
Chicago | $1,600 - 2,200 | 89 |
US Average | $1,200 - 1,600 | 67 |
London (Zone 1-2) | $2,500 - 3,500 | 139 |
Manchester | $1,200 - 1,600 | 67 |
UK Average | $900 - 1,300 | 56 |
Toronto | $1,800 - 2,400 | 100 |
Vancouver | $2,000 - 2,800 | 111 |
Montreal | $1,200 - 1,600 | 67 |
Canada Average | $1,100 - 1,500 | 61 |
Three-Bedroom Apartment - City Center
City | Rent Range | Index vs. Tel Aviv |
Tel Aviv | $3,200 - 4,500 | 100 |
Jerusalem | $2,500 - 3,500 | 78 |
Haifa | $1,800 - 2,500 | 56 |
Beer Sheva | $1,300 - 1,800 | 41 |
|---|---|---|
New York City | $5,500 - 8,000 | 172 |
San Francisco | $5,000 - 7,000 | 156 |
Los Angeles | $3,500 - 5,000 | 109 |
Chicago | $2,800 - 3,800 | 84 |
|---|---|---|
London (Zone 1-2) | $4,500 - 6,500 | 141 |
Manchester | $2,000 - 2,800 | 62 |
Toronto | $3,000 - 4,200 | 94 |
Vancouver | $3,500 - 4,800 | 109 |
Montreal | $2,000 - 2,800 | 62 |
Property Purchase Prices (Per Square Meter)
Location | City Center | Outside Center |
Tel Aviv | $10,000 - 15,000 | $7,000 - 10,000 |
Jerusalem | $8,000 - 12,000 | $5,500 - 8,000 |
Haifa | $5,500 - 8,000 | $4,000 - 6,000 |
Beer Sheva | $3,500 - 5,000 | $2,500 - 4,000 |
|---|---|---|
New York City | $15,000 - 25,000 | $8,000 - 12,000 |
San Francisco | $12,000 - 18,000 | $7,000 - 11,000 |
Los Angeles | $7,000 - 11,000 | $5,000 - 7,500 |
Chicago | $4,500 - 7,000 | $3,000 - 5,000 |
London | $15,000 - 25,000 | $9,000 - 13,000 |
Manchester | $4,000 - 6,000 | $2,500 - 4,000 |
Toronto | $8,000 - 12,000 | $5,000 - 8,000 |
Vancouver | $10,000 - 15,000 | $6,500 - 10,000 |
Montreal | $4,500 - 7,000 | $3,000 - 5,000 |
Israeli Housing-Specific Costs
Cost | Amount (Monthly) | Notes |
Arnona (Municipal Tax) | $80 - 200 | Varies by city/apartment size; 90% discount Year 1 for new olim |
Va'ad Bayit (Building Fees) | $50 - 150 | Elevator, maintenance, security |
Utilities (85 sqm apt) | $150 - 250 | Electricity, water, gas |
Total Add-On Costs | $280 - 600 | Not included in rent |
Typical Apartment Purchase (3BR, 100 sqm)
Location | Price | Monthly Mortgage (20% down, 30yr) |
Tel Aviv Center | $1,000,000 - 1,500,000 | $4,200 - 6,300 |
Tel Aviv Suburbs | $700,000 - 1,000,000 | $2,900 - 4,200 |
Jerusalem | $800,000 - 1,200,000 | $3,400 - 5,000 |
Haifa | $550,000 - 800,000 | $2,300 - 3,400 |
Beer Sheva | $350,000 - 500,000 | $1,500 - 2,100 |
2. UTILITIES & BILLS
Monthly Costs (85 sqm / 900 sqft Apartment)
Utility | Israel | USA | UK | Canada |
Electricity | $80 - 150 | $110 - 150 | $75 - 120 | $70 - 110 |
Water | $25 - 40 | $40 - 70 | $30 - 50 | $30 - 55 |
Gas (cooking/heating) | $15 - 30 | $50 - 80 | $60 - 100 | $60 - 120 |
Internet (High-Speed) | $30 - 45 | $50 - 80 | $35 - 55 | $50 - 75 |
Mobile Phone | $15 - 30 | $50 - 80 | $25 - 45 | $50 - 75 |
Building Fees (Va'ad) | $50 - 150 | N/A | N/A | N/A |
Municipal Tax (Arnona) | $80 - 200 | (property tax) | (council tax) | (property tax) |
|---|---|---|---|---|
TOTAL (Typical) | $400 | $380 | $300 | $350 |
Key Notes
ï **Israel Mobile Service: **Cheapest in developed world ($15-30 vs. $50-80)
ï **Israel Water: **More expensive due to scarcity/desalination
ï **Arnona: **Unique Israeli cost; new olim get 90% discount Year 1, decreasing over 10 years
3. GROCERIES & FOOD
Supermarket Staples (Weekly Shopping)
Item | Israel | USA | UK | Canad a | IL vs. USA |
Milk (1L) | $1.70 | $1.00 | $1.30 | $1.50 | 70% |
Bread (500g) | $2.50 | $2.50 | $1.20 | $2.20 | Same |
Eggs (12) | $4.00 | $3.50 | $3.20 | $4.00 | 14% |
Chicken Breast (1kg) | $11.0 0 | $10.0 0 | $8.50 | $12.00 | 10% |
Beef (1kg) | $18.0 0 | $15.0 0 | $12.0 0 | $16.00 | 20% |
Cheese (1kg) | $15.0 0 | $11.0 0 | $9.00 | $13.00 | 36% |
Rice (1kg) | $2.20 | $2.50 | $1.80 | $2.80 | -12% |
Tomatoes (1kg) | $3.00 | $3.50 | $2.80 | $3.80 | -14% |
Potatoes (1kg) | $1.50 | $2.00 | $1.30 | $2.20 | -25% |
Apples (1kg) | $3.00 | $4.50 | $2.50 | $4.00 | -33% |
Cucumber (each) | $0.80 | $0.75 | $0.60 | $0.90 | 7% |
Olive Oil (1L) | $8.00 | $10.0 0 | $7.00 | $11.00 | -20% |
Monthly Grocery Budget
Household | Israel | USA | UK | Canad a |
Single Person | $540 | $420 | $364 | $492 |
Couple | $900 | $700 | $600 | $800 |
Family of 4 | $1,48 0 | $1,16 0 | $1,00 8 | $1,332 |
Israeli Supermarket Hierarchy
Store Type | Price Level | Best For |
Rami Levy | Cheapest (-20% vs. standard) | Bulk buying, basics |
Shufersal Deal | Mid-range (standard) | Regular shopping |
Shufersal Sheli Li | Premium (+15-25%) | Convenience, quality |
Super Yuda | Most expensive (+30-40%) | Imports, specialty items |
Shuk (Market) | Variable (often -20-30%) | Fresh produce, Thursday afternoons |
Restaurant Costs
Meal Type | Israel | USA | UK | Canada |
Fast Food Combo | $12 - 15 | $9 - 11 | $8 - 10 | $10 - 13 |
Falafel/Street Food | $8 - 12 | $10 - 15 | $8 - 12 | $10 - 14 |
Coffee (Cappuccino) | $4 - 5 | $4 - 5 | $3.50 - 4.50 | $4 - 5 |
Israeli Breakfast | $15 - 22 | $12 - 18 | $10 - 16 | $13 - 19 |
Mid-Range Dinner (1 person) | $25 - 35 | $20 - 30 | $20 - 28 | $22 - 32 |
Mid-Range Dinner (2 people) | $80 - 120 | $60 - 90 | $60 - 90 | $70 - 100 |
Beer (Bar, 0.5L) | $7 - 9 | $6 - 8 | $6 - 8 | $7 - 9 |
4. TRANSPORTATION
Vehicle Ownership Costs
Car Purchase Prices (New Vehicle)
Vehicle | Israel | USA | UK | Canad a | ILMarkup |
Honda Civic | $35,00 0 | $25,00 0 | $28,00 0 | $28,00 0 | 40% |
Toyota Camry | $45,00 0 | $28,00 0 | $35,00 0 | $32,00 0 | 61% |
Honda CR-V | $55,00 0 | $32,00 0 | $38,00 0 | $36,00 0 | 72% |
BMW 3-Series | $75,00 0 | $45,00 0 | $48,00 0 | $52,00 0 | 67% |
Tesla Model 3 | $50,00 0 | $40,00 0 | $45,00 0 | $46,00 0 | 25% |
Why Israeli Cars Are Expensive:
ï Purchase tax: 83% on most vehicles
ï VAT: 18%
ï Import duties
ï Electric vehicles receive tax discounts (hence lower markup)
Monthly Car Ownership Costs
Expense | Israel | USA | UK | Canada |
Car Payment | $450 - 600 | $350 - 500 | $400 - 550 | $400 - 550 |
Insurance | $150 - 250 | $120 - 180 | $140 - 220 | $150 - 200 |
Gas (15,000 km/yr) | $180 - 220 | $100 - 130 | $180 - 210 | $130 - 160 |
Parking (city) | $100 - 200 | $50 - 150 | $100 - 200 | $80 - 150 |
Maintenance | $65 | $50 | $60 | $55 |
Annual Licensing | $13 | $10 | $25 | $15 |
|---|---|---|---|---|
MONTHLY TOTAL | $1,000 - 1,400 | $680 - 960 | $960 - 1,330 | $840 - 1,140 |
ANNUAL TOTAL | $12,000 - 16,800 | $8,160 - 11,520 | $11,520 - 15,960 | $10,080 - 13,680 |
Gasoline Prices
Location | Per Liter | Per Gallon | vs. Israel |
Israel | $1.80 - 2.00 | $6.80 - 7.60 | Baseline |
USAAverage | $0.80 - 1.00 | $3.00 - 3.80 | -56% |
UK | $1.80 - 2.10 | $6.80 - 7.95 | Similar |
Canada | $1.20 - 1.50 | $4.50 - 5.70 | -33% |
Public Transportation
Monthly Transit Passes
City | Monthly Pass | Single Ride | vs. Tel Aviv |
Tel Aviv (Rav Kav) | $80 - 90 | $1.50 | Baseline |
Jerusalem | $80 - 90 | $1.50 | Same |
Haifa | $80 - 90 | $1.50 | Same |
|---|---|---|---|
New York City | $132 | $2.90 | 47% |
San Francisco | $98 | $3.00 | 9% |
Chicago | $105 | $2.50 | 17% |
|---|---|---|---|
London (Zones 1-2) | $175 | $3.20 | 94% |
Manchester | $90 | $2.50 | Same |
Toronto | $156 | $3.35 | 73% |
Vancouver | $128 | $3.10 | 42% |
Montreal | $94 | $3.75 | 4% |
Annual Transportation Costs Comparison
Scenario | Israel | USA | UK | Canad a |
Car Owner (Commuter) | $13,55 0 | $9,64 0 | $12,64 0 | $11,300 |
Public Transit User | $2,020 | $2,42 0 | $3,540 | $2,780 |
Savings Without Car | $11,53 0 | $7,22 0 | $9,100 | $8,520 |
5. HEALTHCARE
Monthly Healthcare Costs
Type | Israel | USA | UK | Canada |
Single (Basic) | $0 (in taxes) | $400 - 800 | $0 (NHS) | $0 (public) |
Single (Supplemental) | $30 - 80 | N/A | $50 - 150 | $50 - 100 |
Family of 4 (Basic) | $0 (in taxes) | $1,200 - 2,000 | $0 (NHS) | $0 (public) |
Family (Supplemental) | $60 - 150 | N/A | $100 - 300 | $100 - 200 |
Out-of-Pocket Medical Costs
Service | Israel | USA (With Insurance) | UK (NHS) | Canad a |
Doctor Visit | $0 - 5 | $20 - 50 | $0 | $0 |
Specialist | $0 - 10 | $40 - 75 | $0 | $0 |
ER Visit | $0 - 20 | $200 - 500 | $0 | $0 |
Prescription (generic) | $3 - 10 | $10 - 30 | $11 | $5 - 15 |
Blood Test | $0 - 5 | $50 - 150 | $0 | $0 |
MRI | $50 - 150 | $500 - 1,500 | $0 | $0 - 100 |
Appendectomy | $0 - 500 | $2,000 - 5,000 | $0 | $0 |
Having a Baby | $0 - 500 | $2,500 - 5,000 | $0 | $0 |
Annual Healthcare Spending
Household | Israel | USA | UK | Canada |
Healthy Single | $100 - 300 | $6,000 - 10,000 | $0 - 500 | $0 - 600 |
Healthy Family (4) | $300 - 800 | $20,000 - 30,000 | $0 - 1,500 | $500 - 2,000 |
With Chronic Condition | $500 - 2,000 | $15,000 - 40,000 | $0 - 2,000 | $1,000 - 5,000 |
Israeli Health Funds (Kupot Cholim)
Fund | Market Share | Supplemental Insurance |
Clalit | ~53% | $30 - 80/month |
Maccabi | ~25% | $35 - 90/month |
Meuhede t | ~15% | $32 - 85/month |
Leumit | ~7% | $28 - 75/month |
**All Include: **Doctor visits, specialists, hospitalization, surgery, medications (small copay), maternity care, mental health
**Supplemental Adds: **Private rooms, alternative medicine, dental (partial), shorter wait times, specialist choice
6. EDUCATION & CHILDCARE
Childcare Costs (Monthly per Child)
Age/Type | Israel | USA | UK | Canada | ILSavings |
Infant (0-1) | $600 - 900 | $1,200 - 2,000 | $1,100 - 1,800 | $1,000 - 1,600 | -50% |
Toddler (1-3) | $500 - 800 | $1,000 - 1,600 | $900 - 1,500 | $800 - 1,400 | -50% |
Preschool (3-5) | $200 - 400 | $800 - 1,400 | $700 - 1,200 | $700 - 1,200 | -75% |
After-School | $150 - 300 | $500 - 800 | $400 - 700 | $450 - 750 | -70% |
K-12 Education Costs (Annual)
Category | Israel | USA | UK | Canada |
Public School Tuition | Free | Free | Free | Free |
Supplies/Fees | $200 - 400 | $500 - 800 | $300 - 600 | $400 - 700 |
School Meals | $600 - 1,000 | $800 - 1,500 | $700 - 1,200 | $700 - 1,300 |
After-School Activities | $300 - 800 | $1,000 - 2,500 | $800 - 2,000 | $900 - 2,200 |
School Bus | $400 - 800 | $600 - 1,200 | $500 - 1,000 | $550 - 1,100 |
|---|---|---|---|---|
ANNUAL TOTAL | $1,500 - 3,000 | $2,900 - 6,000 | $2,300 - 4,800 | $2,550 - 5,300 |
University/College Costs (Annual)
Institution | Israel | USA | UK | Canada |
Public University | $3,000 - 4,000 | $10,000 - 20,000 (in-state) | $12,000 - 14,000 | $6,000 - 10,000 |
Public University | N/A | $25,000 - 45,000 (out-of-state) | N/A | $18,000 - 25,000(intl) |
Private University | Rare | $40,000 - 60,000 | $20,000 - 40,000 | $25,000 - 45,000 |
Four-Year University Total Cost
Component | Israel | USA Public | USA Private | UK | Canada |
Tuition (4 years) | $12,000 - 16,000 | $40,000 - 80,000 | $160,000 - 240,000 | $48,000 - 56,000 | $24,000 - 40,000 |
Living (4 years) | $30,000 - 55,000 | $45,000 - 85,000 | $45,000 - 85,000 | $40,000 - 72,000 | $38,000 - 73,000 |
Books/ | $2,000 - 4,000 | $4,000 - 8,000 | $4,000 - 8,000 | $3,000 - 6,000 | $3,000 - 7,000 |
|---|---|---|---|---|---|
TOTAL | $44,000 - 75,000 | $89,000 - 173,000 | $209,000 - 333,000 | $91,000 - 134,000 | $65,000 - 120,000 |
7. SALARIES & TAXES
Average Annual Salaries (Gross)
Profession | Israel | USA | UK | Canada |
Software Engineer | $70,000 - 110,000 | $90,000 - 150,000 | $60,000 - 100,000 | $70,000 - 120,000 |
Senior Software Engineer | $90,000 - 140,000 | $120,000 - 200,000 | $80,000 - 130,000 | $95,000 - 160,000 |
Doctor (GP) | $80,000 - 120,000 | $200,000 - 250,000 | $90,000 - 130,000 | $180,000 - 250,000 |
Nurse (RN) | $35,000 - | $70,000 - 90,000 | $45,000 - | $60,000 - 80,000 |
Teacher (Public) | $30,000 - | $50,000 - 70,000 | $40,000 - | $50,000 - 75,000 |
Lawyer | $60,000 - 120,000 | $100,000 - 190,000 | $65,000 - 130,000 | $85,000 - 150,000 |
Accountant | $40,000 - | $60,000 - 90,000 | $45,000 - | $55,000 - 85,000 |
Engineer | $50,000 - | $70,000 - | $50,000 - | $65,000 - 95,000 |
Marketing Manager | $50,000 - | $70,000 - | $55,000 - | $65,000 - |
Administrative | $25,000 - | $35,000 - 50,000 | $28,000 - | $35,000 - 50,000 |
Tax Rates (Approximate)
Israel Tax Brackets 2025
Income (USD) | Tax Rate | Cumulative Rate |
$0 - 22,000 | 10% | 10% |
$22,000 - 31,600 | 14% | 10-14% |
$31,600 - 49,400 | 20% | 14-20% |
$49,400 - 70,500 | 31% | 20-31% |
$70,500 - 147,500 | 35% | 31-35% |
$147,500+ | 47% | 35-47% |
Plus:
ï National Insurance (Bituach Leumi): ~12% (includes health tax ~3-5%)
Effective Total Tax Rate:
ï $50,000: ~25%
ï $100,000: ~30-35%
ï $150,000: ~35-40%
USA Federal + State (Average)
Income | Federa l | State (avg) | FICA | Total |
$50,000 | 12% | 5% | 7.65% | ~25% |
$100,00 0 | 18% | 6% | 7.65% | ~32% |
$150,00 0 | 22% | 7% | 6.5% | ~36% |
**Note: **Varies significantly by state (CA: +13%, TX: 0%)
UK Tax Rates
Income (£) | Tax Rate | National Insurance | Total |
£0 - 12,570 | 0% | 0% | 0% |
£12,570 - 50,270 | 20% | 12% | ~32% |
£50,270 | 40% | 2% | ~42% |
Canada Federal + Provincial (Average)
Income (CAD) | Federa l | Provincia l | CPP/ EI | Total |
$50,000 | 15% | 10% | 7.6% | ~33% |
$100,000 | 20% | 12% | 7.6% | ~40% |
Net Income After Taxes (Single, No Dependents)
Gross Salary | Israel Net | USA Net | UK Net | Canada Net |
$30,000 | $25,200 (84%) | $24,000 (80%) | $24,600 (82%) | $24,300 (81%) |
$50,000 | $39,500 (79%) | $38,500 (77%) | $38,000 (76%) | $38,000 (76%) |
$70,000 | $52,500 (75%) | $52,500 (75%) | $50,400 (72%) | $51,800 (74%) |
$100,000 | $70,000 (70%) | $72,000 (72%) | $68,500 (68.5%) | $70,000 (70%) |
$150,000 | $97,500 (65%) | $105,000 (70%) | $95,250 (63.5%) | $99,000 (66%) |
8. OLEH (NEW IMMIGRANT) BENEFITS
Tax Benefits (10 Years)
New Resident Status (Toshav Chadash) - MOST IMPORTANT
Eligibility:
ï New immigrant to Israel OR
ï Returning resident who was non-resident for 6 of previous 10 years
Benefits (10 Full Years):
Benefit | Details | Potential Savings |
Foreign Income | All foreign-source income tax-exempt in | $20,000 - 50,000/year |
Foreign Capital Gains Exemption | Capital gains from foreign sources tax-exempt | Varies (can be massive) |
Foreign Pension Protection | Favorable treatment of 401k, IRA, RRSP, etc. | $10,000 - 100,000+ over10 years |
Foreign Passive Income | Dividends, interest from foreign sources favorable treatment | $5,000 - 20,000/year |
Example Calculation:
ï Salary: $150,000/year from foreign company (remote work)
ï Normal Israeli tax: ~$52,500/year
ï With new resident status: $5,300/year (only US taxes via FEIE)
ï Annual savings: $47,200
ï 10-year savings: $472,000 Requirements:
ï Must file for status with Israeli Tax Authority
ï Must establish Israeli residency
ï Must work with Israeli accountant
ï Application deadline: First tax year after aliyah
**CRITICAL: **This benefit requires professional tax planning. Hire Israeli accountant specializing in olim ($500-1,500 for consultation/filing).
Direct Financial Benefits
Sal Klita (Absorption Basket)
Family Size | Total Amount | Payment Schedule |
Single | $6,000 - 8,000 | 6-12 months |
Couple | $12,000 - 15,000 | 6-12 months |
Family of 4 | $20,000 - 25,000 | 6-12 months |
Large Family (6) | $30,000 - 35,000 | 6-12 months |
Notes:
ï Direct deposit to Israeli bank account
ï Free money (not a loan)
ï Administered by Ministry of Aliyah or Nefesh B'Nefesh
Arnona (Municipal Tax) Discounts
Year | Discoun t | Example: TA 3BR (₪180/mo normally) |
Year 1 | 90% | Pay ₪18/month ($5) |
Year 2 | 80% | Pay ₪36/month ($10) |
Year 3 | 70% | Pay ₪54/month ($15) |
Year 4 | 60% | Pay ₪72/month ($19) |
Year 5 | 50% | Pay ₪90/month ($24) |
Year 6 | 40% | Pay ₪108/month ($29) |
Year 7 | 30% | Pay ₪126/month ($34) |
Year 8 | 20% | Pay ₪144/month ($39) |
Year 9 | 10% | Pay ₪162/month ($44) |
Year 10 | 0% | Pay ₪180/month ($49) |
**10-Year Total Savings: **~$10,000 - 15,000
Other Benefits
Benefit | Value | Duration |
Customs Exemption | Import household goods duty-free | One-time |
Vehicle Import Discount | Reduced/exempt duties on one vehicle | 3 years from aliyah |
Health Insurance | Immediate coverage (all residents) | Permanent |
Ulpan (Hebrew Classes) | Free intensive Hebrew courses | First year |
University Tuition Discount | Additional discount Year 1-2 | 1-2 years |
Professional Licensing Assistance | Fee waivers/discounts | Varies |
Employment Support (NBN) | Job placement, career counseling | Ongoing |
Total Value of Oleh Benefits (10-Year Period)
Benefit | Conservativ e | Moderat e | Aggressive |
Tax Savings (New Resident) | $100,000 | $300,000 | $500,000+ |
Sal Klita | $6,000 | $15,000 | $25,000 |
Arnona Discounts | $8,000 | $12,000 | $15,000 |
Healthcare Savings vs. USA | $50,000 | $150,000 | $250,000 |
Childcare Savings vs. USA | $60,000 | $120,000 | $180,000 |
University Savings vs. USA | $30,000 | $60,000 | $120,000 |
Customs/Vehicle | $5,000 | $15,000 | $30,000 |
|---|---|---|---|
TOTAL VALUE | $259,000 | $672,000 | $1,120,000+ |
**Note: **These are real savings comparing Israel with oleh benefits vs. alternative countries (primarily USA). High earners with foreign income can save even more through tax benefits.
9. SAMPLE MONTHLY BUDGETS
Budget A: Single Professional (Tel Aviv)
Category | Amoun t | % of Income |
Gross Income | $5,000 | |
Taxes (30%) | -$1,500 | |
Net Income | $3,500 | 100% |
|---|---|---|
Rent (Shared Apt) | $1,200 | 34% |
Utilities | $70 | 2% |
Arnona | $60 | 2% |
Va'ad Bayit | $40 | 1% |
Groceries | $400 | 11% |
Public Transit | $90 | 3% |
Phone/Internet | $50 | 1% |
Healthcare (Supplemental) | $50 | 1% |
Dining Out | $300 | 9% |
Entertainment | $200 | 6% |
Gym | $70 | 2% |
Personal Care | $80 | 2% |
Clothing | $100 | 3% |
Savings | $500 | 14% |
Emergency Fund | $150 | 4% |
Discretionary | $140 | 4% |
TOTAL | $3,500 | 100% |
Budget B: Family of 4, One Income (Jerusalem)
Category | Amoun t | % of Income |
Gross Income | $6,500 | |
Taxes (23%) | -$1,500 | |
Net Income | $5,000 | 100% |
|---|---|---|
Rent (3BR Suburbs) | $1,600 | 32% |
Utilities | $200 | 4% |
Arnona | $120 | 2% |
Va'ad Bayit | $80 | 2% |
Groceries | $1,100 | 22% |
Car Expenses | $400 | 8% |
Phone/Internet | $90 | 2% |
Healthcare | $100 | 2% |
Childcare (1 Child) | $400 | 8% |
School Expenses (2 Kids) | $200 | 4% |
Dining Out | $200 | 4% |
Entertainment/Kids | $150 | 3% |
Clothing (Family) | $150 | 3% |
Personal Care | $100 | 2% |
Savings | $100 | 2% |
Miscellaneous | $10 | 0% |
TOTAL | $5,000 | 100% |
Budget C: Family of 4, Dual Income (Tel Aviv)
Category | Amoun t | % of Income |
Gross Income (Combined) | $13,000 | |
Taxes (31%) | -$4,000 | |
Net Income | $9,000 | 100% |
|---|
Rent (3BR, Good Area) | $2,800 | 31% |
Utilities | $250 | 3% |
Arnona | $200 | 2% |
Va'ad Bayit | $120 | 1% |
Groceries | $1,400 | 16% |
Transportation | $600 | 7% |
Phone/Internet | $100 | 1% |
Healthcare | $150 | 2% |
Childcare (2 Children) | $1,000 | 11% |
School Expenses | $300 | 3% |
Dining Out | $500 | 6% |
Entertainment | $350 | 4% |
Gym/Activities | $180 | 2% |
Clothing | $250 | 3% |
Personal Care | $150 | 2% |
Vacation Fund | $300 | 3% |
Savings/Investments | $200 | 2% |
Retirement | $100 | 1% |
Miscellaneous | $50 | 1% |
|---|---|---|
TOTAL | $9,000 | 100% |
Budget D: Retiree Couple (Haifa)
Category | Amoun t | % of Income |
Income (Pension/ Savings) | $3,500 | 100% |
|---|---|---|
Rent (2BR) | $1,000 | 29% |
Utilities | $180 | 5% |
Arnona | $90 | 3% |
Va'ad Bayit | $70 | 2% |
Groceries | $700 | 20% |
Transportation | $150 | 4% |
Phone/Internet | $80 | 2% |
Healthcare | $250 | 7% |
Dining Out | $250 | 7% |
Entertainment | $150 | 4% |
Personal Care | $120 | 3% |
Gifts/Family | $150 | 4% |
Travel | $200 | 6% |
Emergency Fund | $110 | 3% |
|---|---|---|
TOTAL | $3,500 | 100% |
10. COMPLETE FINANCIAL COMPARISON
Software Engineer Comparison (Single, $100k Salary)
Category | Israel (Regular) | Israel (New Resident) | USA | UK | Canad a |
Gross Salary | $100,000 | $100,000 | $120,00 0 | $80,00 0 | $95,00 0 |
After Taxes | $70,000 | $95,000 | $90,000 | $54,40 0 | $66,50 0 |
Healthcare | -$600 | -$600 | -$9,200 | -$0 | -$600 |
Student Loans | -$0 | -$0 | -$4,800 | -$2,400 | -$3,000 |
Professional | -$1,000 | -$1,000 | -$1,000 | -$800 | -$900 |
|---|---|---|---|---|---|
Annual Take-Home | $68,400 | $93,400 | $75,000 | $51,20 0 | $62,00 0 |
Monthly | $5,700 | $7,783 | $6,250 | $4,267 | $5,167 |
**Winner: **Israel with New Resident status ($93,400)
Family of 4 Comparison ($130k Combined Income)
Category | Israel (Regular) | Israel (New Resident) | USA | UK | Canada |
Gross Income | $130,000 | $130,000 | $150,00 0 | $110,00 0 | $130,00 0 |
After Taxes | $93,600 | $118,000 | $114,00 0 | $77,000 | $93,600 |
Healthcare | -$1,000 | -$1,000 | -$26,000 | -$1,500 | -$1,000 |
Childcare (2 kids) | -$12,000 | -$12,000 | -$36,000 | -$28,000 | -$26,000 |
School/Activities | -$3,000 | -$3,000 | -$4,000 | -$3,500 | -$3,500 |
Student Loans | -$0 | -$0 | -$8,000 | -$4,000 | -$5,000 |
Annual Take-Home | $77,600 | $102,000 | $40,000 | $40,000 | $58,100 |
Monthly | $6,467 | $8,500 | $3,333 | $3,333 | $4,842 |
**Winner: **Israel with New Resident status ($102,000)
**Note: **American and UK families devastated by childcare and healthcare costs
11. KEY TAKEAWAYS
Israel is CHEAPER for:
Category | Savings vs.USA |
Healthcare | 80-95% cheaper |
University Education | 60-80% cheaper |
Childcare | 50-75% cheaper |
Mobile Phone Service | 50-70% cheaper |
Public Transportation | 20-40% cheaper |
Taxis | 40-60% cheaper |
Israel is MORE EXPENSIVE for:
Category | Premium vs. USA |
Cars (Purchase) | +40-70% more |
Gasoline | +100% more (double) |
Groceries | +25-40% more |
Housing (Major Cities) | +30-50% more than US avg |
Dairy Products | +25-35% more |
Imported Goods | +20-40% more |
Biggest Financial Winners in Israel:
**1. Families with young children **(childcare savings massive)
**2. High-earners with foreign income **(new resident tax status)
**3. People without cars **(avoid biggest expense)
**4. University students **(tuition 75% cheaper than USA)
**5. Anyone with chronic health conditions **(healthcare essentially free)
**6. People living outside Tel Aviv **(housing 30-60% cheaper)
Biggest Financial Losers in Israel:
**1. Working-class families **(housing costs vs. salary ratio difficult)
**2. Car-dependent people **(ownership costs crippling)
**3. Teachers and public servants **(low salaries)
**4. People needing imported goods **(expensive)
**5. Small apartment haters **(space is premium)
The Bottom Line
For most people:
ï Israel's HIGHER costs: Housing (+30%), Groceries (+30%), Cars (+70%)
ï Israel's LOWER costs: Healthcare (-90%), Childcare (-60%), University (-75%)
ï Net effect depends entirely on your life stage and circumstances For new immigrants with proper planning:
ï Tax benefits alone can save $200,000 - $500,000 over 10 years
ï Healthcare and childcare savings add another $200,000+
ï Total benefit package worth $500,000 - $1,000,000 over 10 years
ï Making Israel potentially the most financially advantageous destination for qualified immigrants
12. ESSENTIAL RESOURCES
For New Olim
Government:
ï Ministry of Aliyah and Integration: www.gov.il/en/departments/ ministry_of_aliyah_and_immigrant_absorption
ï Israeli Tax Authority: taxes.gov.il/english
Organizations:
ï Nefesh B'Nefesh (North America): www.nbn.org.il | (212) 805-0444
ï Jewish Agency (Worldwide): www.jewishagency.org
ï SAZF (South Africa): www.sazf.org | +27 (0)11 645-2500
Professional Services:
ï Hire Israeli CPA/Tax Attorney specializing in olim (critical!)
ï Cost: $500-1,500 for consultation
ï Worth it for: Tax planning, new resident status, benefit maximization
Cost of Living Calculators
ï Numbeo: www.numbeo.com (crowd-sourced data)
ï Expatistan: www.expatistan.com
DISCLAIMER
Important Notes:
ï All prices are approximate and based on 2024-2025 data
ï Exchange rate used: ₪3.70 = $1.00 USD
ï Actual costs vary by specific location, season, and individual circumstances
ï Tax laws change; verify current regulations
ï Always consult qualified Israeli tax professional before making financial decisions
ï Cost of living data sourced from: Numbeo, government statistics, expat surveys, and market research
Tax Benefit Disclaimer: **New resident tax status requires professional planning and proper application. Benefits described are based on current tax law (2025) and may change. Eligibility and implementation vary by individual circumstances. **This is not tax advice. Consult Israeli CPA or tax attorney.
**Document Version: **October 2025
For Planning Purposes Only
May your aliyah be smooth, your apartment affordable, and your accountant competent. B'hatzlacha!
Updated on: 01/02/2026
Thank you!