Rates & fees
Rates are the main way residents fund the council. Each year an independent regulator (IPART) sets a 'rate peg' — the maximum percentage the council can lift its total rates income. Here's the current figure, how it compares across NSW, and the things that actually change your bill.
New to these terms? Read them in plain English
- Rate peg
- The cap on how much a council's TOTAL rates income can rise this year.
- Core peg
- The rate peg before the population top-up — the part driven by rising costs.
- Population factor
- An extra slice of the rate peg for fast-growing councils.
- Special Rate Variation (SRV)
- Permission for a council to raise rates by more than the peg.
- Land valuation
- Your land's value, set by the state, used to split the rates bill between properties.
- Pensioner rebate
- A discount on rates for eligible pensioners.
- Domestic waste charge
- A separate annual fee for your bins — NOT part of the rate peg.
- IPART
- Sets the rate peg and reviews council pricing.
- 4.1%Set by IPART — a core peg of 3.7% plus a 0.4% population factor. It caps the council's total rates income, not your individual bill.
- 5.6%IPART's rate peg for the City of Sydney for 2026–27 — a core peg of 2.9% plus a 2.7% population factor, reflecting continued strong population/dwelling growth in the LGA.
- How that compares (NSW, 2025–26)
- Core pegs ranged 3.6%–5.1% (up to 7.6% after population factors)Population growth lifts the final figure for fast-growing LGAs.
- What the peg caps
- Total rates income — not your billIt doesn't cap the domestic waste charge, which is separate.
- Why your bill can still change more (or less)
- Land revaluations shift bills between propertiesYour share moves with your land value relative to other properties (NSW Valuer General).
- Concessions
- Eligible pensioners can receive rebates of up to 100% on rates and chargesCheck eligibility with the council.
The rate peg limits the council's total rates income, not each household's bill. How your individual rates change depends mostly on how your land value moved relative to other properties at the latest revaluation. The City of Sydney's average residential rate is well below the NSW average (see Budget & finances) because a large share of total rates income comes from commercial and CBD business properties.
Sources — check it yourself
- City of Sydney — Council rates in Sydney · 2025–26
- IPART — Rate pegs for NSW councils 2025–26 · Oct 2024
- IPART — Rate pegs for NSW councils 2026–27 · Sep 2025
Figures are current as at the dates shown and may change — always confirm with the linked source. See the notice at the bottom of the page for full details and how to report a correction.