Council rates are a compulsory annual charge levied by local councils to fund essential community services. The amount you pay is determined by the property’s Capital Improved Value (CIV) – the value of the land and buildings – and a fixed charge component.
As of December 2025, council rates vary significantly across Melbourne’s 31 municipalities. In the Fletchers’ primary areas of the Eastern Suburbs – including municipalities like Boroondara, Manningham, and Whitehorse – rates generally range from approximately $1,800 to $4,000 per year for a typical family home. However, this is a broad estimate; a larger property with significant improvements in a sought-after location like Balwyn or Canterbury will likely attract higher rates. Currently in Melbourne, councils are operating under a rate capping system, limiting annual increases. For 2026, the cap is set at 2.75%. Sellers should be aware that prospective buyers will factor ongoing costs like council rates into their affordability calculations. When preparing a property for sale, understanding your current rates notice can be useful when answering buyer questions. In 2027, changes to the rate capping system are anticipated, potentially impacting future rate levels.
Understanding your council rates is an important aspect of property ownership and can be a relevant consideration during the selling process.