How rates and charges are calculated
Find out how we calculate your rates, including information on waste service charges, fire services property levy and rate capping.
Your rates notice lists your rates for the year, as well as other charges. Learn more about these below.
How we calculate your rates
To calculate a property's rates for the year, you need to know:
- a property's capital improved value (CIV)
- a property's net annual value (NAV)
- the current rate in the dollar (0.035499471 in 2025/26).
Your rates are then the total of your property's NAV multiplied by the current rate in the dollar. See our example below.
Capital improved value (CIV)
The capital improved value of your property is the total market value of the land plus buildings and any other improvements.
The CIV is determined by the Valuer General Victoria, as part of their property valuations. You can learn more about property valuations.
Net annual value (NAV)
The net annual value of your property is generally 5% of the CIV.
The NAV is determined by the Valuer General Victoria, as part of their property valuations. You can learn more about property valuations.
Rate in the dollar
To calculate your rates for the year, multiply the net annual value of your property by the rate in the dollar. For 2025/26 the rate in the dollar is 0.035499471.
Example for an $800,000 property
- Capital improved value (CIV) = $800,000
- Net annual value (NAV) = CIV ($800,000) x 5% = $40,000
- Rates = NAV ($40,000) x Rate in the Dollar (0.035499471) = $1,419.97884
Therefore a $800,000 property has a base rates bill of $1,419.97884.
Frequently asked questions
To calculate the rate in the dollar, we follow these steps.
- Determine the total amount needed to deliver services and infrastructure for the next financial year, within the constraints of the rate cap (see above).
- Divide that amount by the combined value of all rateable properties in Yarra.
This equals the rate in the dollar. We then apply the rate in the dollar to your property.
The Victorian Government introduced rate capping in 2015, to limit annual increases in rate revenue.
The State Government has capped rate increases at 3.00% for 2025/26 and we have elected to apply this 3.00% increase rather than seek an exemption from the cap.
It is important to remember that the 3.00% cap does not apply to your individual bill but rather to the total amount of money that we are seeking from rates revenue. Most properties will experience rate increases that are slightly higher or lower than 3.00%.
Other charges on your notice
Help and support
If you have a question which isn’t answered on these pages, please submit a request for support.