Council Rates by Capital City Australia — 2025-26 Benchmarks

Council rates are the largest recurring property charge most Australians pay outside their mortgage — typically $1,500–$4,000 per year on a median household property, depending on where they live. Rates fund local government services (waste collection, road maintenance, libraries, parks, planning enforcement) and are calculated on a per-council basis using a combination of fixed charges and valuation-based components.

This article benchmarks council rates across Australia’s 8 capital cities for 2025-26, with median-home rate estimates, the underlying calculation methodology in each state, and how council rates interact with state-level land tax.

What are council rates?

Council rates are the largest recurring property charge most Australians pay outside their mortgage — typically $1,500–$4,000 a year on a median household property. They fund local government services such as waste collection, road maintenance, libraries, parks and planning enforcement, and are calculated on a per-council basis using a combination of fixed charges and valuation-based components.

The valuation base differs by state — Unimproved Value, Capital Improved Value, Gross Rental Value or Assessed Annual Value among them — which means a property worth the same amount can carry a materially different rate liability depending on where it sits.

Quick reference — median household council rate by capital city 2025-26

Median figures approximate single-dwelling owner-occupied property. Rates for investment properties, vacant land, and commercial property differ. Always check with your specific council for the exact figure.

Per-state valuation methodology

Council rates are calculated using different property value bases across the 8 jurisdictions — a structural feature that means a property worth $1M can have materially different rate liability depending on the state.

NSW — Unimproved Value (UV) + minimum rate

NSW councils use Unimproved Value (the value of the land excluding buildings and improvements) as the valuation base. Most NSW councils combine a minimum rate (fixed charge) with a percentage on UV above a threshold. Valuation is provided by the NSW Valuer General every 3 years and updated annually for assessment.

VIC — Capital Improved Value (CIV)

Victorian councils use Capital Improved Value (the full property value including land + buildings). Higher CIV = higher rates, no minimum-charge convention. Valuations are updated annually by the Victorian Valuer-General.

QLD — Combined fixed + differential rate

Queensland councils use a tiered system combining a fixed general charge with a differential rate based on land use category (residential / commercial / industrial / rural / utilities). Brisbane City Council uses a particularly granular category structure.

WA — Gross Rental Value (GRV) for metro

WA metropolitan councils use Gross Rental Value (the estimated annual market rent the property could command). Regional WA uses Unimproved Value. GRV is set every 3 years by the Valuer-General.

SA — Capital Value

South Australian councils use Capital Value (full property value). Each Adelaide council applies its own rate-in-the-dollar plus optional service charges.

TAS — Assessed Annual Value (AAV)

Tasmanian councils use Assessed Annual Value (estimated rental value) for most residential rating. The Valuer-General updates AAVs on a rolling basis.

ACT — AUV with consolidated rates + land tax

The ACT is unique in having no local councils — the ACT Revenue Office issues a single notice covering what would be council rates elsewhere and, where the property is an investment, state-level land tax as well. Both components are calculated on Average Unimproved Value (AUV — a 5-year average) plus a fixed charge. An owner-occupier receives the same notice but pays only the general rates component.

The two sides carry entirely separate fixed charges and marginal scales, which is the detail most comparisons get wrong. General rates are payable by every owner and carry their own fixed charge — a few hundred dollars for a house, set annually — plus a valuation charge on AUV, with different rating factor scales for houses and units. Land tax is payable only on investment property, on top of general rates, and for 2026-27 carries its own fixed charge of $1,778 plus marginal rates on AUV of 0.54% / 0.64% / 1.24% / 1.25% / 1.26%, billed quarterly. The $1,778 figure is therefore not what an owner-occupier pays. See Land Tax by State Australia — 2026-27 for the land tax breakdown, and our Canberra valuation guide for how AUV averaging behaves in a falling market.

NT — Unimproved Capital Value (UCV)

Darwin and other NT councils use Unimproved Capital Value as the rating base, with a fixed minimum charge plus a percentage. Limited number of councils across the territory simplifies the picture.

Additional service charges (beyond general rates)

Most councils add separate charges for:

• Waste / garbage collection — typically $250–$600 per year per residential property
• Stormwater management — $30–$100 per year
• Recycling / green waste — $100–$250 per year
• Fire services levy (where applied separately) — varies
• Water and sewerage — billed separately from rates in every jurisdiction, on a utility bill (Sydney Water, City West Water, and in the ACT Icon Water)

These can add $500–$1,200 to the base rates figure above, depending on the council and service mix.

Council rates vs land tax — the interaction

For investment property owners, council rates and state land tax are both payable annually — they don’t substitute. The combined annual property tax load is:

• Council rates (local government, services-funded)
• State land tax (state government, general revenue) — above the state threshold
• Federal income tax on rental yield (less deductions)

For a $1M Sydney investment property held by an individual:

• Council rates: ~$2,000–$2,500
• NSW land tax: $0 (assumed UV of $400k–$600k, below $1,075k threshold), or $100 + 1.6% above threshold if above
• Federal income tax: based on net rental yield

For a foreign-owned investment property at the same value, add NSW Surcharge Land Tax at 5% (from the 2025 land tax year) — a material recurring cost.

Council rates and property valuations

Independent property valuations may be relevant in council rates context when:

• Objecting to a Valuer-General valuation that drives your rates higher than market value supports — for residential homes see residential property valuation; for commercial assets see commercial property valuation
• Disputing a council category classification (e.g. residential vs commercial differential rating) — a retail property valuation or industrial property valuation can support reclassification objections where the council’s category does not match the asset’s actual use
• Subdivision and rating-impact assessment before development consent — a property feasibility study models pre- and post-subdivision rating outcomes alongside development value

The grounds for objecting to a Valuer-General valuation vary by state — typically 60–90 days from the valuation notice. A qualified independent valuation supporting a lower market value is the strongest evidentiary base for an objection. For an overview of the standards our reports are prepared under, see our standards and compliance page.

Methodology

Council rate figures are typical ranges based on each council’s published 2025-26 rates schedule. Wide variation exists within each state across the dozens or hundreds of councils — Brisbane City Council alone is geographically larger than most Australian capitals combined, while inner-Sydney councils vary by 40-60% on identical property values.

Always verify the exact rates payable for a specific property by checking the council’s published rates schedule or requesting an estimate from the council directly.

Frequently asked questions

Which capital city has the highest council rates?

On these approximate median figures, Canberra (ACT) sits at the top, at roughly $2,200–$3,500 a year, followed by Brisbane at $2,100–$2,900. Canberra is higher partly because the ACT has shifted deliberately away from stamp duty toward recurrent rates over more than a decade. Note that the ACT issues a single notice covering general rates and, for investment property only, land tax — an owner-occupier pays the general rates component alone. These are approximate single-dwelling figures — always check with your specific council.

Why do council rates vary so much between states?

Because each state rates on a different property-value base. NSW uses Unimproved Value, Victoria uses Capital Improved Value, WA metro uses Gross Rental Value, SA uses Capital Value, Tasmania uses Assessed Annual Value, the ACT uses Average Unimproved Value and the NT uses Unimproved Capital Value. This structural difference means a property worth the same amount can carry a materially different rate liability depending on the state.

How are council rates calculated in the ACT?

The ACT runs a consolidated rates and land tax system, unique among Australian jurisdictions — the ACT Revenue Office issues a single notice covering what would be council rates plus state-level land tax elsewhere. The two components are separate. General rates are the part every owner pays: their own fixed charge, set annually, plus a valuation charge applied to Average Unimproved Value (a 5-year average), with different rating factors for houses and units. Land tax is additional, applies only to investment property, and carries its own fixed charge of $1,778 for 2026-27 plus marginal rates of 0.54% to 1.26% — so the $1,778 figure widely quoted for “ACT rates” is the land tax fixed charge, and an owner-occupier does not pay it.

Do investment property owners pay both council rates and land tax?

Yes. For investment owners, council rates and state land tax are both payable annually — they don’t substitute. Council rates fund local government services; state land tax is state revenue charged above the state threshold. Federal income tax on rental yield applies on top. A foreign-owned investment property adds NSW Surcharge Land Tax of 4% as a further recurring cost.

What extra charges appear on a council rates notice?

Beyond general rates, most councils add separate charges: waste or garbage collection (typically $250–$600 a year), stormwater management ($30–$100), recycling or green waste ($100–$250), and a fire services levy where applied separately. Water and sewerage sit on a separate utility bill rather than the rates notice — in the ACT, billed by Icon Water. Together these can add $500–$1,200 to the base figure.

Can I object to the valuation behind my council rates?

Yes. If a Valuer-General valuation drives your rates higher than market value supports, you can object — the grounds vary by state and the window is typically 60–90 days from the valuation notice. A qualified independent valuation supporting a lower market value is the strongest evidentiary base for an objection. See our guide to objecting to a Valuer-General valuation.

Sources and references

• City of Sydney — Rates information
• City of Melbourne — Rates and valuations
• Brisbane City Council — Rates and pricing
• City of Perth — Rates and valuations
• City of Adelaide — Rates
• City of Hobart — Rates information
• ACT Revenue Office — Rates (consolidated rates + land tax)
• City of Darwin — Rates

See also

• Property Taxes in Australia — The Total Cost by State 2026-27 — council rates combined with stamp duty and land tax in one comparison
• Capital Improved Value vs Market Value — Every State’s Rating Base Explained — what CIV, site value, AAV and GRV each mean and which bill they feed
• Land Tax by State Australia — 2026-27 Thresholds, Rates & Foreign Surcharges
• Stamp Duty Rates by State Australia — 2026-27
• Property Valuation Cost by State and Type — Australia 2025-26 — pricing context for council rates objections
• Australian Property Valuation Statistics 2026 — Market, Industry & Cost Data — aggregated market data underlying these rates figures

Last verified: 28 July 2026. Council rates change with each council’s annual budget cycle — verify your specific property rate with the council directly. For valuations supporting a Valuer-General objection or council categorisation dispute, request a quote.