Car rental in Israel (2026): what it costs and what to check before you book

A small manual or automatic car costs about 130-300 ₪ per day, and the season matters more than the company. These ranges come from comparison-site prices for the coming season and include basic CDW and theft protection.

• Low season (November to March, outside Hanukkah and Christmas): about 130-200 ₪ per day for a small car.
• High season (Pesach, Sukkot, Christmas week, July-August): about 200-300 ₪ per day, and cheap categories sell out first.
• Weekly rentals: the daily price usually drops compared with a 2-3 day rental, because many suppliers include unlimited kilometres only from 3 days.
• Bigger cars: a family SUV or 7-seater often costs 1.5 to 2.5 times the small-car price, and minimum age rules are stricter.

Many Israeli companies quote tourists in US dollars and Israelis in shekels. A dollar price on a foreign website usually already excludes VAT for tourists, while a shekel price on a Hebrew site usually includes it. Always compare the final total, not the headline daily rate.

Extra costs to plan for: a young-driver surcharge, an extra driver, a child seat, a one-way fee (for example picking up in Tel Aviv and returning in Eilat), an airport fee at Ben Gurion, and tolls with handling fees. One Israeli supplier's terms also cap kilometres at 250 km per day for 1-2 day rentals and make them unlimited from 3 days, so check the mileage line before booking a short trip.

Foreign tourists are exempt from VAT on the rental if they show a valid tourist visa at the counter; Israelis pay 18%. Israel raised VAT from 17% to 18% on 1 January 2025.

• Who is exempt: visitors holding a B2 tourist visa (some companies also accept B3 and B4). Since Israel no longer stamps passports, the proof is the small entry slip (blue card) you receive at passport control. Keep it in your passport.
• Who pays VAT: Israeli citizens, including dual nationals who entered on an Israeli passport, new immigrants (olim) and residents. One international brand's Israeli terms state that Israeli passport holders, including dual citizens, must pay VAT.
• What stays taxed: fuel and toll charges are still subject to VAT, even for tourists.
• Validity: at least one supplier requires the visa to be valid for the entire rental period.
• Eilat: the city is a VAT-free zone, so rentals picked up and returned in Eilat are usually quoted without VAT for everyone. A one-way rental to the centre may be charged differently; check your rental terms.

If you are a dual national, assume you will pay VAT and compare prices on that basis.

You need a valid driving licence, your passport and a credit card in the main driver's name. Requirements vary slightly by supplier, so read the conditions on your voucher.

• Licence: a foreign licence can be used for up to one year from your entry into Israel. Eldan requires a licence in English with a photo, and a non-English licence must come with an international licence (IDP). If your licence is in another alphabet, get an IDP before you travel.
• Licence history: usually at least 1 year, and 2 years at some suppliers (Eldan asks for 2 years; larger categories can require 5).
• Age: most suppliers set 21 as the practical minimum for small cars; some rent from 18 with a daily surcharge, and premium or 7-seat categories often require 25 or 28.
• Credit card: a real credit card in the main driver's name, not a debit or prepaid card. The deposit is blocked on it. Eldan, for example, states a minimum deposit of 2,700 ₪ and requires a card cleared by an Israeli card company.
• Olim: new immigrants can drive on their foreign licence for one year from entry and have five years from their aliyah date to convert it. Drivers who held their licence for five consecutive years before aliyah can convert with an eye exam and without a driving test. See the Ministry of Transport conversion service on gov.il.

Collision damage waiver (CDW) and theft protection (TP) are included in, or mandatory with, almost every Israeli rental, but they come with an excess of roughly 2,000-4,000 ₪.

• Compulsory third-party bodily injury insurance is included by law. Eldan states third-party property cover up to 600,000 ₪.
• CDW and TP: Sixt states that both are mandatory for all vehicles in Israel. A few international brands allow you to decline them with written proof of credit card coverage, but then require you to buy extra liability cover.
• Excess: Eldan lists 2,000-4,000 ₪ by vehicle group; one international brand lists $500-1,000.
• Usual exclusions: tyres, windscreen, roof and underbody are excluded from standard CDW at several suppliers.
• Credit cards: Visa's US auto rental CDW benefit states that coverage is not available in Israel, Ireland or Jamaica. Other card programmes vary, so check your card's terms in writing before relying on it.

To reduce the excess, you can buy the supplier's own excess waiver at the desk or a full coverage option when booking on a comparison site. Our Israel car rental insurance guide explains the difference in detail.

Israel's toll roads have no cash booths on Highway 6: cameras read your plate, the operator bills the rental company, and the company passes the cost to you with a handling fee.

• Highway 6 (Kvish 6, Cross-Israel Highway): charged by number of segments. Unregistered vehicles pay the casual rate, about 24-34 ₪ per trip in the 2026 tariff depending on segments. Eldan bills toll trips at the operator's non-subscriber rate plus a handling fee from its price list.
• Highway 6 North (Yokneam-Somech section): a separate operator with its own billing.
• Carmel Tunnels (Haifa): about 12 ₪ per segment for a private car from July 2026; cash booths also exist.
• Route 1 Fast Lane into Tel Aviv: a tolled lane with a free park-and-ride and shuttle buses at Shapirim.
• Handling fees: these can exceed the toll itself. One international brand's Israeli terms list a 50 ₪ service fee per unpaid toll or ticket.

If you only cross Highway 6 once or twice, the cost is minor. If you plan daily commutes on it, ask the desk how tolls are billed, and Waze can be set to avoid toll roads.

Most rental branches close from Friday early afternoon until Saturday evening, so plan pickups and returns around Shabbat.

• City branches (Jerusalem, Tel Aviv, Haifa, Eilat) generally close on Friday around midday and reopen on Saturday night or Sunday morning.
• Ben Gurion airport is the main exception: some suppliers hand over cars there on Shabbat and Eldan accepts airport returns 24 hours a day, sometimes with an out-of-hours charge.
• Public transport stops in most of the country from Friday afternoon to Saturday night, which is exactly when a car becomes most useful, and when demand peaks.
• Holidays: Rosh Hashanah, Yom Kippur, Sukkot and Pesach work like long Shabbats. On Yom Kippur roads are practically empty and driving is socially unacceptable in most areas; even Eldan's roadside assistance does not operate that day.
• Pickup grace period: Eldan holds a car up to 2 hours after the booked time, reduced to 1 hour in summer and holiday periods.

Pick up where your road trip starts: Ben Gurion airport has the largest fleet and the longest hours, while city branches save you an airport fee and a drive in traffic.

• Ben Gurion airport (TLV): rental desks in Terminal 3 arrivals, the widest choice and some Shabbat service. Best if you head north, south or to the Dead Sea straight away.
• Tel Aviv: you do not need a car inside the city; rent for day trips only. Parking is the real cost.
• Jerusalem: rent for day trips to the Dead Sea, the Negev or the north. Branches close before Shabbat and the city's centre is hard to drive and park in.
• Eilat: rentals are usually VAT-free; Ramon Airport (ETM) is about 18 km north of the city.
• Haifa: the best base for the Galilee, the Golan, Akko and Rosh Hanikra.

One-way rentals (for example Tel Aviv to Eilat) are possible with most national suppliers for an extra fee.

Compare first, then read the conditions of the exact offer you pick: deposit, excess, mileage, fuel policy and pickup location.

We recommend comparing on DiscoverCars, which lists hundreds of suppliers including Israeli companies such as Shlomo Sixt, Eldan, Avis/Budget Israel and Hertz, offers free cancellation up to 48 hours before pickup and sells a full coverage option. Get a second quote on Economybookings before you pay. These are affiliate links: we may earn a commission, and the price you pay is unchanged.

Common traps:
- Debit card at the desk: many suppliers refuse it; bring a credit card with enough limit for the deposit.
- Missing fuel: Eldan charges missing fuel at the legal full-service price plus a per-litre fee. Return the car full.
- Tickets and tolls: parking fines and speed-camera tickets are sent to the rental company, which assigns them to you and adds a handling fee, sometimes months later.
- Area A: rental cars may not enter Palestinian Authority Area A (Ramallah, Bethlehem, Jericho, Nablus). Insurance does not apply there.
- Photos: photograph the car, the fuel gauge and the odometer at pickup and return.