Your Wellington City Council rates explained

These services include everything from water, recycling, roading, and social housing, to all the things that make our city a great place to live like parks, recreation centres, pools, libraries, and community centres.  

As people will be receiving their first rates notices for the new financial year (1 July 2025 – 30 June 2026) in early August, we have put together a list of commonly asked questions about rates.  

What do rates pay for? 

Rates help pay for the hundreds of services the Council delivers for the city and its residents across many areas, including: 

• Drinking water, wastewater, and stormwater 

• Transport 

• Community participation and support 

• Recreation promotion and support 

• City promotions and business support 

• Parks, beaches, and open spaces 

• Waste reduction and energy conservation 

• Building and development 

• Public health and safety 

• Arts and cultural activities 

• Governance, information, and engagement 

• Parking 

• Conservation attractions 

• Urban planning, heritage, and public spaces development 

More information is here: Where your rates go - Rates - Wellington City Council 

How are rates set? 

Every three years, the Council produces a Long-term Plan, outlining how it intends to invest for the next 10 years. Each year, the Council also sets its annual budget as part of the Annual or Long-term Plan process. The rates funded component of that budget is then collected from property owners. 

This year’s budget includes average rates increases of 12 percent (including a sludge levy of 1.4 percent on average). 

Our 2024-34 Long-term Plan was amended this year to reflect the Council’s decision to not sell our shares in Wellington International Airport Limited. The amended plan includes reducing our borrowing so we’re in a better position to respond to an emergency or natural disaster. 

What is the additional sludge levy? 

The sludge levy, which was introduced last year, is to cover the approximately $400 million required to build Te Whare Wai Para Nuku, the Moa Point sludge minimisation facility, without affecting the Council’s funding for other important infrastructure and community projects. 

This critical piece of infrastructure will reduce the volume of treated sludge, a byproduct of the wastewater treatment process, by up to 80 percent. It will also reduce emissions generated through the treatment process by up to 60 percent. It will remove the need to pipe more than a million litres of sludge across the city and bury 40–50 tonnes of it in the landfill each day.  

How are my rates calculated?  

Rates are calculated using your property's capital value, land use, and whether it receives targeted rates, a rates remission, or is non-rateable. 

Our rates revenue is split between targeted rates and general rates.  

General rates are paid by all ratepayers and applied to services which benefit the whole community – for example emergency management, cleaning and waste, maintaining parks, walkways, roads and footpaths, and operating libraries and community centres.  

Targeted rates are paid by a specific group of ratepayers who receive a specific service – for example water and wastewater services in rural areas, and funding for business improvement districts (BIDs). 

How do I find out what my rates will be this year?  

You can look up a property’s rates using our property search tool: Property search - Wellington City Council . Rates invoices will be sent out (via email or letter) at the start of August. 
 
The total rates figure includes both Wellington City Council rates, the sludge levy, and Greater Wellington Regional Council rates.  

The Council says average rates increases will be around 12 percent. But my rates have increased by more/less than that. Why?  

The total number you see in your rates bill includes Greater Wellington Regional Council rates, as well as Wellington City Council rates and the sludge levy.  
 
Wellington City Council’s 12% average increase reflects the total increase overall in the rates we collect. The rates increase for an individual property may differ from the average. The share you pay depends on your property’s capital value, land use, and whether it receives targeted rates, a rates remission, or is non-rateable.  
 
Wellington City Council also collects Greater Wellington Regional Council rates on their behalf. The average increase in Greater Wellington rates is 9.72%. Find information about Greater Wellington rates here or contact them on 0800 496 734 or at info@gw.govt.nz.  

What help is there for people who are experiencing financial hardship?  

There are options available to spread payments out over the course of a year. You can spread your rates over weekly, fortnightly, or monthly payments using direct debit. If you are behind on payments, we may be able to offer a payment plan. For assistance or options contact the rates team on 499 4444 or email rates@wcc.govt.nz.  
 
If you were on a low income between 1 April 2024 – 31 March 2025, you may be eligible for up to $1,605 off your rates – a govt rates rebate of up to $805 and a further Council rates remission of up to $800.  
 
You can apply for a Government rates rebate on their website. You will receive the Council rates remission if you receive the Government rebate, unless your property is owned by a company or trust. 

Last year there was a rating valuation – what is that? 

Rating valuations are usually carried out on all New Zealand properties every three years to help local councils calculate rates for the following three-year period. They reflect the likely selling price of a property at the effective revaluation date (not including chattels). The latest revaluation date was 1 September 2024. The new revaluation comes into effect on 1 July 2025. 
 
Wellington City Council use these valuations as a guide for calculating your share of rates. 
 
Rating valuations are not intended to be used for any other purpose, or as sales data.  

How do revaluations affect rates? 

The Council uses property values to divide rates. On 1 September 2024, it’s likely your property’s capital value changed since the previous revaluation in 2021. This does not mean you will be paying less rates. 

Revaluations help us work out everyone’s share of rates, but it doesn’t affect the total amount of rates that the Council collects. We don’t collect more rates if your capital value goes up, and we don’t collect less rates if your capital value goes down.   

Changing values don’t directly affect rates, however if a home’s value changes disproportionately to others the homeowner can find themselves with lower or higher changes. If you think of the Council’s rates income as a pie, the size of the pie does not get any bigger or smaller because of the revaluation. However, a ratepayer’s slice of pie might get bigger or smaller depending on how their property value has changed in relation to the average change of the city.  

The actual rates increase for each property will depend on a range of factors, including: 

• the Council’s overall rates ‘budget’ calculated each year in the Annual Plan. 

• the capital value change for your property compared to the average change. 

• any change in the mix of services the Council provides. 

• any change in targeted rates or the Council’s rating differential. 

I objected to my current valuation so can I hold off paying rates until this is sorted? 

No. Council is obliged under legislation to set the rates on the values that are on the District Valuation Roll and rates are still payable regardless of any outstanding objections. Non-payment may attract a penalty, 

Once your objection is settled, and if the values change, an amended rates assessment reflecting the change in valuation will be sent out. If your rates decreased, we could then refund any overpayment, or the credit can be applied to your next instalment.