The cost of living in Israel is the third highest in the OECD
A basket of everyday spending that costs $100 in the United States costs $119 in Israel. Of the 38 OECD countries, only Iceland and Switzerland are dearer.
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OECD figures, updated each month. Latest: August 2026.
The same everyday spending, priced in each OECD country
United States = 100. August 2026.
- 1Iceland132
- 2Switzerland130
- 3Israel119
- 4Denmark103
- 5Australia102
- 5Ireland102
- 7Norway101
- 8United States100
- 9Luxembourg97
- 10United Kingdom93
- 11Canada88
- 11Finland88
- 18France81
- 18Germany81
- 38Türkiye45
Source: OECD, comparative price levels, August 2026.
Only three of 175 economies were dearer than Israel in the World Bank's 2021 comparison
Of the 175 economies with a World Bank household price level for 2021, only Bermuda, the Cayman Islands and Switzerland were dearer than Israel.
Prices in Israel went from the middle of the OECD table to the top three
In 2005 prices in Israel were 9% below America's, 23rd of the 38 countries now in the OECD. Since 2019 they have been among the three highest every year except 2023 and 2024, when Israel slipped to 5th.
Prices themselves moved in step with America's: what $1 bought there cost ₪4.07 in Israel in 2005 and ₪4.05 in 2021. The shekel did not. A dollar cost ₪4.49 on average in 2005 and ₪3.23 in 2021, so the same shekel prices came to far more in dollars.
Price of household spending against the United States, 1995 to 2025, and August 2026 (the dotted end). Sources: OECD, purchasing power parities and exchange rates; OECD, comparative price levels. Ranks are among the 38 current OECD members.
Cars, restaurants and food cost more in Israel than in almost every other OECD country
In 2024, the latest year with this detail, cars cost 40% more than the OECD average, the highest of the 38. Restaurants and hotels were the 3rd dearest and food the 4th. Phone and internet bills were below the OECD average, and health care cost 17% less than in the United States.
- Everything households buy119 5th of 38 in 2024
- Restaurants and hotels148 3rd of 38
- Cars and other vehicles140 highest of 38
- Housing, water, electricity and gas135 8th of 38
- Food and soft drinks133 4th of 38
- Health125 6th of 38
- Clothing and shoes118 7th of 38
- Recreation and culture112 7th of 38
- Transport111 14th of 38
- Phone, internet and post89.7 20th of 38
Price level by category, OECD average = 100, 2024. Source: OECD, purchasing power parities, detailed results.
Prices in Israel have risen more slowly than in America since 2015
From 2015 to 2024 consumer prices rose 15% in Israel, against 32% in the United States, 33% in the United Kingdom and 26% in Germany. Clothes and shoes got 31% cheaper. Home energy, meaning electricity, gas and other fuels, rose 11% in Israel and 72% in the United Kingdom.
Tzahy Lerner / CC BY-SA 3.0 · Wikimedia Commons
Food and soft drinks
- Israel +18%
- US +26%
- UK +36%
- Germany +45%
Rent
- Israel +22%
- US +47%
- UK +26%
- Germany +15%
Home energy
- Israel +11%
- US +35%
- UK +72%
- Germany +53%
Fuel for cars
- Israel +19%
- US +35%
- UK +29%
- Germany +33%
Restaurants and hotels
- Israel +31%
- US +40%
- UK +45%
- Germany +42%
Clothing and shoes
- Israel −31%
- US +6%
- UK +20%
- Germany +11%
Consumer prices, 2015 = 100 (the dashed line). 2024 is the latest year all four countries report. Source: OECD, consumer price indices.
Pick your country and see what costs more in Israel, and what costs less
The same spending priced in both countries, category by category, and what a salary there buys here.
Prices in Israel are 19% higher than in the United States.
What costs $100 there costs $119 in Israel. OECD, August 2026.
Category by category, in 2024
- Cars and other vehicles+31%
- Restaurants and hotels+30%
- Food and soft drinks+24%
- Transport+9%
- Clothing and shoes+6%
- Recreation and culture−1%
- Housing, water, electricity and gas−6%
- Health−17%
- Phone, internet and post−22%
OECD, price levels by category, 2024.
A salary there, spent here
The average full-time wage there in 2025, by the OECD.
buys what ₪317,967 a year buys in Israel, or ₪26,497 a month.
For scale, the average full-time wage in Israel was ₪209,935 a year in 2025, or ₪17,495 a month.
World Bank purchasing power parities for household spending, 2025: ₪3.66 buys what $1 buys in the United States. Average wages: OECD.
A Big Mac in both
A Big Mac costs ₪23 in Israel, about $7.67, and $6.22 in the United States.
The Economist, Big Mac index, July 2026.
Rent in Tel Aviv is 2.3 times what it is in Be'er Sheva
In April to June 2026 the average monthly rent across Israel was ₪5,086. Across the 18 big cities the statistics bureau reports on, it ran from ₪3,183 in Be'er Sheva to ₪7,421 in Tel Aviv, where a flat of 4.5 rooms or more averaged ₪11,348. In Jerusalem it was ₪5,347.
Marsupium / CC0 · Wikimedia Commons
All flats, April to June 2026. Israel as a whole: ₪5,086 a month.
- Tel Aviv₪7,421
- Herzliya₪6,775
- Kfar Saba₪6,146
- Ramat Gan₪5,894
- Jerusalem₪5,347
- Rishon LeZion₪5,273
- Petah Tikva₪5,138
- Holon₪4,945
- Rehovot₪4,943
- Beit Shemesh₪4,927
- Netanya₪4,816
- Bnei Brak₪4,483
- Ashdod₪4,455
- Bat Yam₪4,407
- Hadera₪4,087
- Ashkelon₪3,698
- Haifa₪3,405
- Be'er Sheva₪3,183
Average monthly rent in shekels, April to June 2026, for flats rented in the period. Source: Israel Central Bureau of Statistics, Table 4.9.
Every figure here comes from the OECD, the World Bank, Israel's statistics bureau or The Economist
A price level compares what the same basket of goods and services costs in two countries, with both prices turned into dollars at the market exchange rate. A level of 119 means the basket costs 19% more in Israel than in the United States.
- Price levels, monthly
- OECD, comparative price levels. Latest month: August 2026.
- Price levels, 1995 to 2025
- OECD purchasing power parities for household spending, divided by the average exchange rate, which is how the OECD defines a price level.
- Prices by category
- OECD, purchasing power parities, detailed results, 2024.
- The world comparison
- World Bank, International Comparison Program, 2021, under CC BY 4.0.
- Price changes
- OECD, consumer price indices, 2015 to 2024.
- Salaries
- World Bank purchasing power parities for household spending, under CC BY 4.0. OECD, average annual wages, 2025.
- Big Mac
- The Economist, Big Mac index, July 2026, under CC BY 4.0.
- Rent
- Israel Central Bureau of Statistics, Price Statistics Monthly, Table 4.9, April to June 2026.
Figures are shown as each source publishes them; ranks and percentage differences are worked out from the same figures. Last updated 15 October 2026.
Short answers to what people ask about prices in Israel
Is Israel expensive?+
Yes. In August 2026 a basket of everyday spending that cost $100 in the United States cost $119 in Israel, the 3rd highest of the 38 OECD countries, after Iceland and Switzerland. Source: OECD, comparative price levels.
What costs more in Israel than elsewhere?+
Cars most of all: in 2024 they cost 40% more than the OECD average, the highest of the 38 member countries. Restaurants and hotels were the 3rd dearest and food and soft drinks the 4th. Source: OECD, price levels by category.
What is cheaper in Israel?+
Phone, internet and post cost less than the OECD average in 2024, and health spending cost 17% less than in the United States. Clothes and shoes got 31% cheaper in Israel from 2015 to 2024. Sources: OECD price levels and consumer price indices.
How much is rent in Israel?+
The average monthly rent across Israel was ₪5,086 in April to June 2026. It was highest in Tel Aviv at ₪7,421 and lowest in Be'er Sheva at ₪3,183, among the big cities Israel's Central Bureau of Statistics reports. Source: CBS, average monthly prices of rent.
What is the average salary in Israel?+
The average full-time wage in Israel was ₪209,935 a year in 2025, about ₪17,495 a month, by the OECD's measure of average annual wages.
How much does a Big Mac cost in Israel?+
₪23 in July 2026, about $7.67, against $6.22 in the United States. Source: The Economist, Big Mac index.
These four pages answer what people ask next about moving to Israel
Shekel to dollar
Today's rate in both directions, with tables for common amounts.
Aliyah guide
The move itself in six steps, and the benefits that change the arithmetic.
Aliyah statistics
Who moves to Israel, from where, and which towns they chose.
Rakoon / CC0 · Wikimedia Commons
Israel's population
How many people live here, where, and how fast that changes.