What currency is used in Jerusalem?

Jerusalem uses the New Israeli Shekel (NIS or ILS, symbol ₪). The shekel is subdivided into 100 agorot.

Where can I exchange money in Jerusalem?

Independent money changers in the Old City (Jaffa Gate, Damascus Gate) and along Jaffa Road / Ben Yehuda Street in Center City generally offer better rates than banks or the airport. Look for licensed 'change' offices with no commission.

Are credit cards accepted in Jerusalem?

Yes. Visa and Mastercard are accepted almost everywhere including restaurants, hotels, taxis and most shops. American Express is less common. Carry some cash for the shuk (Mahane Yehuda), small kiosks, and tips.

Should I tip in Israel?

Restaurants: 12–15% (check if service is already included). Taxis: rounding up is common but not required. Tour guides: ~$10–20 per person per day.

Can tourists get a VAT refund in Israel?

Yes. Tourists can claim a VAT (17%) refund on purchases over 400 NIS from participating stores when leaving via Ben Gurion Airport, minus a processing fee.

Israel Currency Guide: Money in Jerusalem

Everything travelers need to know about the New Israeli Shekel (NIS), exchanging money in Jerusalem, using cards, ATMs, tipping and getting your VAT refund on the way home.

The New Israeli Shekel (NIS / ILS)

Israel's official currency is the New Israeli Shekel, abbreviated NIS or ILS, symbol ₪. One shekel is divided into 100 agorot.

Coins: 10 agorot, ½₪, 1₪, 2₪, 5₪, 10₪
Banknotes: 20₪, 50₪, 100₪, 200₪

Where to exchange money in Jerusalem

Avoid exchanging large amounts at Ben Gurion Airport — rates are the worst in the country. The best rates in Jerusalem are typically at licensed independent money changers (look for "Change / No Commission"):

Old City: Just inside Jaffa Gate and Damascus Gate.
Center City: Jaffa Road, Ben Yehuda Street, and around Zion Square.
Mahane Yehuda Market area: Several reliable changers on Agrippas Street.

Banks work too but charge commission and keep short hours (typically closed Friday afternoon and all day Saturday for Shabbat).

ATMs

ATMs (called kaspomat) are widespread and accept Visa, Mastercard, and most international debit cards. Withdrawing shekels directly usually beats exchanging cash. Always choose to be charged in shekels, not your home currency, to avoid dynamic currency conversion fees.

Credit cards vs. cash

Israel is largely cashless. Visa and Mastercard work at hotels, restaurants, taxis (including Gett), supermarkets, and nearly every shop. Keep 200–400₪ cash on hand for:

Mahane Yehuda Market vendors
Small Old City stalls and bakeries
Tips for guides, drivers, housekeeping
Public buses and light rail (though Rav-Kav cards are preferred)

Tipping

Restaurants: 12–15%. Check the bill — "service" (sherut) may already be included.
Taxis: Not expected; rounding up is polite.
Tour guides: $10–20 USD per person per day.
Hotel housekeeping: 10–20₪ per night.

Shabbat and holidays

From Friday afternoon through Saturday night, most banks, exchange offices, and many shops close for Shabbat. Plan withdrawals and exchanges in advance. ATMs remain operational.

VAT refund for tourists

Israel charges 17% VAT. Tourists spending 400₪ or more in a single transaction at a participating store can claim a refund at Ben Gurion Airport before departure. Ask for the tax refund invoice at the point of sale and allow extra time at the airport for processing.

Practical tips

USD and EUR are widely accepted at hotels and tour operators, but you'll get poor rates — pay in shekels where possible.
Notify your bank of travel dates to avoid card blocks.
Carry a mix of small bills for markets and tips.
Contactless payment (tap-to-pay) works nearly everywhere.