The attacks took place in two locations in Sarona Market, close to Israel's defence ministry and main army HQ.
Police said the gunmen were from Yatta, a Palestinian village near the West Bank town of Hebron.
Both are in custody. One is undergoing surgery in hospital, police added.
There has been a rise in Palestinian attacks on Israelis since last year, with a series of shootings, stabbings and car rammings, although the number of incidents had dropped in recent months.
