Is Israel expensive? What things really cost in 2026
Short answer
Yes, Israel is one of the most expensive countries in the Middle East and the Mediterranean, with Tel Aviv regularly ranked among the world's costliest cities. A mid-range day is about ₪840 per person, and rooms and restaurants are the main costs. Public transport, markets and many religious sites are good value.
Daily budget: backpacker, mid-range, luxury
| Budget | Mid-range | Comfort | |
|---|---|---|---|
| Bed (per person, sharing) | ₪150 | ₪400 | ₪900 |
| Food & drink | ₪120 | ₪250 | ₪450 |
| Sights & tickets | ₪40 | ₪90 | ₪180 |
| Local transport | ₪30 | ₪100 | ₪200 |
| Per person, per day | ₪340 | ₪840 | ₪1,730 |
Approximate 2026 prices, two people sharing a room. From our Israel day-cost table.
What things cost
| Item | Typical price* |
|---|---|
| Hummus plate at a Carmel Market stall | about ₪30-45 |
| Coffee in a Tel Aviv cafe | about ₪12-18 |
| Sharing dinner of small plates | ₪120-180 per person |
| Train Tel Aviv to Jerusalem | roughly ₪20 |
| Caesarea National Park | roughly ₪40-45 |
| Akko Knights' Halls and Templars' Tunnel | about ₪60 combined |
| Rental car per day | about ₪180-300 |
| Mid-range double near the Tel Aviv beach | ₪600-1,000 |
* Approximate prices, October 2026. They change with season and exchange rates.
Where the money goes
Accommodation is the biggest cost: even hostel private rooms cost ₪250-400, and mid-range hotels in Tel Aviv or near Jaffa Gate in Jerusalem run ₪600-1,100. Eating out is expensive, especially in Tel Aviv. National parks charge entry, and a rental car is useful for the Galilee and the Dead Sea. Foreign tourists paying hotels in foreign currency are usually exempt from the 18% VAT, so check whether quoted rates include it.
When it is cheaper
Prices are lower in winter (roughly November to February outside Hanukkah and Christmas) and in the hot summer outside school holidays. Around Passover and Rosh Hashanah to Sukkot, hotels can cost much more and fill up; check current rates.
How to spend less
- Eat in markets such as Carmel and Mahane Yehuda, where falafel, sabich and hummus are cheap.
- Use trains and buses with a Rav-Kav card or the Moovit and Rav-Pass apps.
- Consider an Israel Nature and Parks pass if you will visit several national parks (check current options).
- Join the free White City walking tours and Bahá'í Gardens tours.
- Pay hotels in foreign currency to avoid the 18% VAT where it applies.
- Stay in hostels with kitchens and shop at supermarkets before Shabbat.
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Common questions
Is Israel expensive for tourists?
Yes. Expect about ₪840 per person a day mid-range, or ₪340 on a tight budget. Tel Aviv is the most expensive city.
Do tourists pay VAT on hotels in Israel?
Foreign tourists paying in foreign currency are usually exempt from the 18% VAT on hotels. Check whether quoted rates include it.
How much does food cost in Israel?
Street food such as falafel costs about ₪20-30; a sharing dinner in Tel Aviv about ₪120-180 per person.