Israel operates on the Israeli New Shekel (ILS, ₪), introduced in 1985 to replace the hyperinflation-damaged old shekel at a rate of 1,000:1. The currency subdivides into 100 agorot. As of 2024, exchange rates hover near 3.6-3.8 shekels per US dollar, though this fluctuates. ATMs dispense shekels universally across cities and most towns, with networks like Leumi, Hapoalim, and Discount Bank charging foreign card fees of 12-20 shekels per withdrawal. Credit cards work widely, but cash remains necessary for markets, small eateries in Jerusalem's Old City, and Arab-owned businesses in Nazareth or Acre. Currency exchange booths cluster near Jaffa Gate in Jerusalem and along Ben Yehuda Street in Tel Aviv, typically offering rates 2-4% worse than ATM withdrawals. Banks exchange currency but require passport presentation and charge commission fees of 15-30 shekels per transaction.
Budget accommodations in Israel start at 80-120 shekels per night in hostel dormitories. Abraham Hostel in Jerusalem and Tel Aviv charges 90-110 shekels for eight-bed dorms, 140-180 for four-bed rooms. HI Hostels operate in Jerusalem, Tel Aviv, Eilat, and Safed with similar pricing. Private hostel rooms range 250-400 shekels nightly. Budget hotels begin at 350-500 shekels for basic doubles without breakfast in secondary cities like Beersheba or Netanya. Guesthouses in Nazareth and Acre charge 280-450 shekels. Midrange hotels in Tel Aviv and Jerusalem cost 600-900 shekels, with Haifa and Eilat slightly lower at 500-750. Airbnb apartments in Tel Aviv run 400-700 shekels for entire units outside central districts, 700-1200 in neighborhoods like Florentin or Neve Tzedek. Jerusalem apartments near Mahane Yehuda Market cost 350-600 shekels, though Old City options remain scarce and expensive. Kibbutz guesthouses offer rooms at 450-700 shekels including breakfast, with Ein Gedi, Lotan, and Sde Boker accepting individual travelers. Prices increase 30-50% during Jewish holidays—Passover, Rosh Hashanah, Sukkot—and decrease 15-25% in winter months November through February outside Eilat.
Street food provides the cheapest meals. Falafel pita sandwiches cost 15-25 shekels at stands throughout Tel Aviv, Jerusalem, and Haifa, with long-established vendors like Hakosem in Tel Aviv charging 22 shekels for full pita with salads and tahini. Hummus plates at dedicated hummusiyot range 25-38 shekels for large portions with pita, pickles, and onion. Abu Hassan in Jaffa charges 28 shekels, while Said Hummus in Acre costs 26 shekels. Sabich stands sell eggplant-egg pita for 20-28 shekels. Burekas from bakeries cost 8-15 shekels each. Shawarma wraps run 30-45 shekels depending on meat type and portion size. Supermarket meals assembled from Shufersal, Rami Levy, or Victory chains cost 35-60 shekels for bread, cheese, vegetables, and hummus containers. Fresh produce markets like Mahane Yehuda in Jerusalem and Carmel Market in Tel Aviv sell tomatoes, cucumbers, and peppers at 8-15 shekels per kilogram, bread at 5-12 shekels per loaf. Budget sit-down restaurants charge 45-70 shekels for main dishes—pasta, schnitzel, salads. Casual local restaurants in working neighborhoods of Tel Aviv like Kerem HaTeimanim or Jerusalem's Mahane Yehuda area serve meals at 55-85 shekels including drink. Midrange restaurant dinners cost 80-140 shekels per person before alcohol, with appetizers adding 30-50 shekels. Pizza slices sell for 12-18 shekels, whole pies 55-85 shekels. Coffee costs 10-14 shekels for filter, 12-16 for espresso drinks at chains like Aroma or Café Café. Supermarket bottled water runs 3-6 shekels for 1.5 liters, street kiosks charge 8-10 shekels. Israeli breakfast at hotels or cafes costs 45-75 shekels, featuring eggs, salads, bread, cheese, olives. McDonald's Big Mac meals cost 48-52 shekels for reference. Alcohol prices reach European levels—beer at bars costs 25-35 shekels for 0.5L, supermarket six-packs 30-45 shekels, local wine bottles 35-90 shekels retail.
Public transportation costs remain moderate through integrated Rav Kav smart cards, purchased for 5 shekels at central bus stations and light rail stations. Tel Aviv bus rides cost 5.90 shekels with Rav Kav, 6.90 cash. Jerusalem light rail and buses charge identical fares. Transfers within 90 minutes cost nothing additional when using Rav Kav. Haifa buses and Carmelit subway cost 6.60 shekels, with the Carmelit representing the Middle East's only subway until 2023. Intercity Egged buses connect major cities at fixed rates—Tel Aviv to Jerusalem costs 16 shekels one-way with Rav Kav, 18.50 cash, departing every 15-20 minutes on route 405. Tel Aviv to Haifa runs 25.50 shekels, taking 90 minutes on route 910. Jerusalem to Eilat costs 71 shekels on route 444, traveling 4.5 hours. Beersheba to Eilat runs 57 shekels on route 397. Israel Railways operates Tel Aviv to Jerusalem trains at 22 shekels one-way, 37.50 round-trip, completing the route in 32 minutes from HaHagana Station to Yitzhak Navon Station since 2018. Coastal trains from Nahariya through Haifa and Tel Aviv to Beersheba cost 9.50-44 shekels depending on distance. Sherut shared taxis follow bus routes at similar prices, departing when full, operating on Shabbat when buses stop. Private taxis use meters starting at 12.30 shekels plus 2.65 per kilometer daytime, 3.05 nighttime after 21:00. Tel Aviv to Jerusalem by taxi costs 250-300 shekels. Gett and Yango apps function like Uber with similar metered pricing. Car rentals begin at 140-200 shekels daily for economy models from Eldan, Shlomo Sixt, or Cal Auto, requiring drivers aged 24-plus. Fuel costs 7.20-7.80 shekels per liter for 95 octane. Highway 6 toll road charges 2.75-47.20 shekels per segment via automatic billing.