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Council Rates by Capital City Australia — 2025-26 Benchmarks

Landmark Valuations EditorialRICS-Regulated Firm27 May 20267 min read

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.

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

Capital city	Median council rate (approx)	Fixed vs valuation mix	Notes
Sydney (City of Sydney)	$1,800 – $2,400	Fixed minimum + UV (Unimproved Value) percentage	High variation across Sydney’s 33 councils
Melbourne (City of Melbourne)	$1,500 – $2,200	CIV (Capital Improved Value) percentage	Inner-city councils generally higher
Brisbane (Brisbane City Council)	$2,100 – $2,900	Combined fixed + differential rate by category	Brisbane Council is one of the largest councils in Australia, distinct system
Perth (City of Perth)	$1,600 – $2,300	Fixed minimum + GRV (Gross Rental Value) percentage	WA uses GRV for metro councils
Adelaide (City of Adelaide)	$2,000 – $2,700	Fixed + capital value percentage	Verify with each Adelaide council
Hobart (City of Hobart)	$1,800 – $2,500	Fixed + AAV (Assessed Annual Value)	Tasmanian rates use AAV system
Canberra (ACT)	$2,200 – $3,500	Fixed + AUV (Average Unimproved Value) marginal rates	ACT consolidates rates + land tax — see below
Darwin (City of Darwin)	$1,800 – $2,600	Fixed + UCV (Unimproved Capital Value) percentage	Smaller council, fewer service tiers

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

ACT operates a consolidated rates and land tax system uniquely among Australian jurisdictions. The ACT Revenue Office issues a single rates notice combining what would be council rates + state-level land tax elsewhere. Calculation uses Average Unimproved Value (AUV — a 5-year average) plus a fixed charge.

For 2025-26, the fixed rates charge is $1,693 per year, plus marginal rates on AUV: 0.54% / 0.64% / 1.24% / 1.25% / 1.26% across the same brackets as ACT land tax. See Land Tax by State Australia — 2025 for the consolidated breakdown.

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 — most jurisdictions have these on a separate utility bill (Sydney Water, City West Water etc.) not on the council rates notice; ACT consolidates water with rates

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 4% — 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.

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