Money in Israel: Shekels, Cards, Tipping, Transport and Tourist VAT

In Israel, cards cover much of an ordinary city visit, but a modest cash reserve remains useful. The more confusing details are often the local payment apps, the way transport is paid for and whether a quoted hotel price includes VAT for your particular visitor status. Here is how to prepare without carrying a holiday’s worth of cash.

Burma Road, Israel · packing4two

Shekels, agorot, notes and coins

The currency is the new Israeli shekel, written ILS, NIS, ₪ or ש״ח. One shekel is 100 agorot. Current everyday coins are 10 agorot, half a shekel, and 1, 2, 5 and 10 shekels; banknotes are 20, 50, 100 and 200 shekels. A ten-agorot coin is worth 0.10 shekel, not ten shekels.

Keep some smaller notes for markets, tips and incidental purchases. Use the converter for a sense of scale, but treat its result as an indicative exchange value, not a promise about a bank, ATM or exchange office’s final rate.

Can you manage mostly with a card?

Usually yes in hotels, supermarkets and many restaurants and shops. Visa and Mastercard are practical options, though any particular card can still be declined. Contactless phone payment works where the terminal and your card support it; carry the physical card and know its PIN as well.

A small reserve of a few hundred shekels can cover incidental cash needs for a couple, adjusted to the route rather than treated as a daily budget. Check small accommodation providers or services before arrival. Keep a backup card separately and do not carry all your funds in one wallet.

ATMs and exchange counters

Compare the final number of shekels you receive after all fees, not just a large exchange-rate sign. At an ATM, select an ILS withdrawal and examine operator charges. An offer to convert into your home currency is a separate service; compare it with your card terms before accepting.

Use a reputable provider, keep the receipt and check the notes before leaving the counter. Hotels and rental companies can place temporary card authorisations, so leave available credit beyond the expected bill. Large cash payments are subject to legal limits and documentation rules: arrange payment with the business instead of assuming any amount can be paid in banknotes.

Local apps: useful does not mean universally accessible

You may hear people offer payment through the bit app or another local transfer service. These are not simply substitutes for tapping any foreign card: registration, identification and account requirements differ. Do not rely on setting one up at the point of payment during a short visit.

Ask for ordinary card payment, a payment link from the business or cash when a local app is not available to you. Enter card details only in the genuine app or a verified payment page, and check the amount and currency before approving.

Paying for buses and trains

A Rav-Kav is a transport smart card, not a bank card. Buy or obtain the appropriate card, load stored value or a suitable travel contract, and validate as required on each journey. In the Rav-Kav Online app, a supported NFC phone can read and load the physical card; compatible service points offer another way to load it.

Rav-Kav Online supports international payment cards. Complete the write-to-card step, not only the purchase, and check the displayed balance or contract. Keep one card per traveller for a straightforward family setup. Do not assume cash handed to the bus driver or a contactless bank card will work as your ticket.

Taxi payments and the Gett app

In the Gett app, enter your destination, check the pickup point and select a working payment method before requesting a ride. For a street taxi, confirm card acceptance if that is how you intend to pay and ask for the meter. Keep the receipt and trip details.

At Ben Gurion Airport, the authorised taxi process uses a ride code obtained through the Gett app or a self-service station, followed by the designated queue. For an on-demand ride from Terminal 3 this is at ground-floor Exit 03. Cash, card or app payment are available in that service. A scheduled pickup can use a different location, so follow the booking instructions.

Tips in restaurants and taxis

At a sit-down restaurant, roughly 10–15% is a common tipping range, with the choice reflecting service. Read the bill for any service already included and ask how to add a tip if paying by card. A counter-service coffee is a different situation from a full table-service meal.

A taxi tip is not generally expected in the same way; rounding up or adding something for helpful service is optional. Avoid applying a fixed restaurant percentage automatically to every transaction. For organised tours or a private service, clarify any stated gratuity arrangement before paying twice.

VAT and the price you see

The standard VAT rate is 18%, effective since January 2025. Ordinary retail consumer prices are generally displayed including VAT, so this is not normally a sales tax unexpectedly added to a shelf price at the till. Business quotes and some tourism booking presentations need closer reading.

A VAT-inclusive price of 118 shekels contains 18 shekels of VAT, not 18% of 118. Not everything has the standard tax treatment: exceptions exist, including special arrangements in Eilat. Compare the actual final price rather than subtracting 18% from every label.

Hotel VAT: your documents matter

Qualifying tourist accommodation can be zero-rated for VAT. The property needs to establish that you meet the legal tourist conditions; a foreign payment card alone is not proof. Have your passport and entry-status documentation available and ask what the hotel requires before arrival.

Some booking prices exclude VAT on the assumption that the guest qualifies, while a guest who does not qualify may need to pay it. Ask for the final total for your status, especially with mixed-status parties or unusual accommodation. This hotel treatment is separate from shopping refunds at the airport.

Tax-free shopping: arrange it at purchase

Eligible departing tourists can claim VAT refunds on qualifying goods bought from participating approved businesses. The purchase threshold is at least 400 shekels including VAT per qualifying invoice. Ask the shop to prepare the tax-free documentation at purchase and confirm both your eligibility and the goods’ eligibility. Food, drinks and tobacco are not covered.

Keep the goods, invoice, tax-free paperwork, passport and entry documentation available. The refund is not a discount automatically applied to every shop purchase and is not necessarily the full tax amount after service fees. It applies to purchases on the current trip, not a collection of receipts from previous visits.

Before checking your luggage at the airport

If refundable goods are going in checked luggage, present them and the documents for verification before bag drop. At Ben Gurion, the process includes the VAT desk in the departure check-in hall, followed by presentation of the stamped document at the refund desk in the duty-free area. Follow the current airport signage.

Allow time for inspection and the second counter, and confirm the refund method and fees. Do not pack purchases somewhere inaccessible or send them through bag drop first. Keep copies of the paperwork until the refund reaches the agreed payment method.

Compare the total price, cancellation terms and location, and ask the property how tourist VAT eligibility is handled. This is a hotel search, not a claim that we stayed at every property listed. Explore Tel Aviv hotels on Trip.com