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Property taxes and fees in Hobart are calculated based on your property's capital value and include multiple components from council rates to service charges.
As of September 2025, property owners in Hobart face an annual council rates bill that typically ranges from AUD 2,600 to AUD 3,000 for an average home, plus separate water and sewerage charges of AUD 800 to AUD 1,200.
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Hobart property owners pay council rates based on 0.2951 cents per dollar of capital value, plus fixed charges for waste management and service levies.
A typical AUD 600,000 home incurs approximately AUD 2,647 in annual council charges, with water and sewerage billed separately by TasWater.
| Charge Type | Rate/Amount | Annual Cost (AUD 600,000 property) |
|---|---|---|
| General Rate | 0.2951 cents per $ of capital value | AUD 1,771 |
| Fire Service Levy | 0.0542 cents per $ of capital value (min AUD 50) | AUD 325 |
| Waste Management | AUD 300 (residential) | AUD 300 |
| State Waste Levy | AUD 24 (residential) | AUD 24 |
| Stormwater Rate | 0.0237 cents per $ of capital value | AUD 142 |
| FOGO Green Waste (optional) | AUD 85 standard service | AUD 85 |
| Water & Sewerage (TasWater) | Separate billing | AUD 800-1,200 |
What is the current annual property tax rate set by the Hobart City Council?
The general rate for Hobart City Council in the 2025-26 financial year is 0.2951 cents per AUD dollar of capital value.
This means if your property has a capital value of AUD 600,000, you'll pay AUD 1,770.60 in general rates alone. The rate is applied to the total capital value as assessed by the Office of the Valuer-General.
The council sets this rate annually as part of their budget process, and it can vary slightly from year to year based on the council's funding requirements and the total value of properties in the municipality.
This general rate forms the largest component of your annual council bill and funds essential services like road maintenance, parks, libraries, and local government administration.
How is the assessed value of a property in Hobart calculated for tax purposes?
Property values in Hobart are determined by the Office of the Valuer-General, not by the council itself, using market value assessments under the Valuation of Land Act 2001.
The Valuer-General conducts regular valuations based on market evidence, including recent sales of comparable properties, development costs, and income potential for investment properties. These valuations reflect what a property would sell for on the open market.
Property owners receive a notice of valuation from the Valuer-General, and this capital value becomes the basis for calculating all council rates and charges. The valuation considers factors like location, size, condition, improvements, and local market conditions.
If you disagree with your property's assessed value, you can object to the Valuer-General within 60 days of receiving the valuation notice, though you'll need supporting evidence to justify a different value.
What is the minimum amount a property owner will pay each year, regardless of property value?
Every property owner in Hobart pays a minimum fire service levy of AUD 50 per year, regardless of their property's value.
For the general rate, while the council has the power to set a minimum amount, the current structure means properties with very low values will still pay the percentage-based rate rather than a fixed minimum. However, when you add all the fixed service charges, even the lowest-value properties typically pay several hundred dollars annually.
The fixed charges that apply to all residential properties include the waste management service charge of AUD 300, the state waste levy of AUD 24, and the minimum fire service levy of AUD 50.
This means even owners of very low-value properties will pay at least AUD 374 in basic service charges before any percentage-based rates are calculated.
Are there separate waste management or garbage collection fees, and how much are they?
Yes, Hobart charges separate waste management fees that appear as distinct line items on your rates notice.
Residential properties pay AUD 300 per year for the standard waste management service charge, while non-residential properties pay AUD 600 annually. This covers your regular garbage and recycling collection services.
Additionally, there's a state waste levy of AUD 24 for residential properties and AUD 48 for non-residential properties, which helps fund state-wide waste management initiatives.
If you choose to subscribe to the FOGO (Food Organics Garden Organics) green waste service, you'll pay an extra AUD 85 for standard fortnightly collection or AUD 176 for weekly collection.
These charges are fixed amounts that don't vary based on your property's value, making waste costs predictable for budgeting purposes.
Is there a fire service levy or similar emergency services charge, and what does it cost annually?
Hobart charges a fire service rate of 0.0542 cents per dollar of capital value for properties within the permanent fire brigade district, with a minimum charge of AUD 50 per year.
For an average home valued at AUD 600,000, this fire service levy costs AUD 325.20 annually. This charge funds the Tasmania Fire Service and emergency response capabilities in urban areas.
The minimum AUD 50 charge ensures that even properties with very low assessed values contribute to fire service funding, recognizing that emergency services protect all properties regardless of value.
This levy is mandatory for all property owners and appears as a separate line item on your council rates notice, distinct from the general rate and other service charges.
Do water and sewerage charges come through the council rates, and what are the typical amounts?
Water and sewerage charges are billed separately from council rates in Hobart and are managed by TasWater, not the council.
TasWater sends property owners separate quarterly bills for water supply and sewerage services, with typical annual costs ranging from AUD 800 to AUD 1,200 for an average residential property.
The exact amount depends on your property size, the number of water connections, and your actual water usage. TasWater charges include fixed service availability charges plus variable usage charges based on meter readings.
This separation means your council rates notice won't include water costs, and you'll need to budget separately for these essential utilities when calculating your total annual property expenses.
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Are there stormwater or drainage fees applied separately, and if so, what do they usually cost?
Yes, Hobart charges a separate stormwater removal service rate of 0.0237 cents per dollar of capital value.
This charge appears as a distinct line item on your rates notice and funds the maintenance and improvement of stormwater drainage systems throughout the city. For a property valued at AUD 600,000, the annual stormwater rate is AUD 142.20.
The stormwater rate helps fund infrastructure like drain cleaning, flood mitigation works, and the maintenance of stormwater pipes and outlets that protect properties from water damage during heavy rainfall.
Unlike some councils that include stormwater costs in their general rate, Hobart separates this charge to provide transparency about how much property owners contribute specifically to drainage infrastructure.
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Are there any special levies or additional local charges that apply only to certain suburbs or developments in Hobart?
Hobart applies differential rates for specific property types, though most standard residential properties pay the same rates regardless of suburb.
Vacant residential land faces different rate calculations, and short-stay visitor accommodations may be subject to higher rates than standard residential properties. Some new developments might have special service district charges for enhanced services.
The council can create special rate districts for areas that receive additional services like enhanced streetscaping, extra cleaning, or special infrastructure maintenance, though these are not common across most suburbs.
Commercial and industrial properties have their own rate structures, and some heritage or waterfront areas might face additional levies for specialized maintenance or environmental protection measures.
Most suburban residential properties stick to the standard rate structure without additional local charges, making the standard rates table applicable to the majority of homeowners.
How often are property taxes and fees billed, and can they be paid in instalments?
Hobart City Council issues rates notices annually, typically in July for the financial year running from July 1 to June 30.
Property owners can choose to pay their full annual amount immediately or spread payments across four quarterly instalments throughout the year. The instalment due dates are usually in September, December, March, and June.
Paying by instalments doesn't incur additional fees, making it a popular option for property owners who prefer to spread their rates burden across the year rather than paying a large lump sum.
The council sends reminder notices before each instalment due date, and you can set up direct debit arrangements to ensure payments are made automatically on time.
Are pensioners, first-time buyers, or low-income households eligible for rebates or concessions, and what is the reduction amount?
Eligible pensioners can receive up to 50% reduction on their council rates for qualifying properties, subject to meeting specific criteria set by the council.
To qualify for pensioner concessions, you typically need to hold a valid pensioner concession card, own and occupy the property as your principal place of residence, and meet income and asset tests. The property value may also need to fall below certain thresholds.
Vacant land undergoing development may also receive 50% remission of the general rate, provided the development meets council requirements and timelines. This helps reduce carrying costs during construction periods.
The council may offer additional concessions for other circumstances like financial hardship, though these are assessed case-by-case and may involve payment plans rather than rate reductions.
Applications for concessions typically need to be submitted annually with supporting documentation, and approval isn't automatic even if you received concessions in previous years.
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What penalties or interest rates apply if a property owner is late in paying their council rates?
Hobart City Council charges a 3% flat fee penalty on each unpaid instalment that becomes overdue.
In addition to the penalty fee, the council applies interest at 10.3% per annum, calculated monthly on overdue amounts. This means late payments can become expensive quickly if left unpaid.
The penalty applies to each missed instalment separately, so missing multiple instalments can result in multiple 3% penalties plus accumulating interest charges on the total outstanding balance.
For property owners facing financial difficulty, the council may be willing to negotiate payment arrangements before penalties and interest accumulate, making early communication important if you can't meet payment deadlines.
Serious rate arrears can ultimately lead to debt recovery action and potentially the sale of the property to recover unpaid rates, though councils typically exhaust other options first.
Can you provide an example of the total annual taxes and fees for an average Hobart home worth AUD 600,000?
A typical Hobart home valued at AUD 600,000 faces total annual council charges of approximately AUD 2,647, plus separate water and sewerage costs of AUD 800 to AUD 1,200.
| Charge Component | Calculation Method | Annual Amount (AUD) |
|---|---|---|
| General Rate | AUD 600,000 × 0.002951 | 1,770.60 |
| Fire Service Rate | AUD 600,000 × 0.000542 | 325.20 |
| Waste Management | Fixed residential charge | 300.00 |
| State Waste Levy | Fixed residential charge | 24.00 |
| Stormwater Rate | AUD 600,000 × 0.000237 | 142.20 |
| FOGO Green Waste (optional) | Standard service | 85.00 |
| Total Council Charges | Sum of all components | 2,647.00 |
Water and sewerage are billed separately by TasWater and typically add another AUD 800 to AUD 1,200 annually, bringing total property-related government charges to approximately AUD 3,450 to AUD 3,850 per year.
This example assumes standard residential services and doesn't include optional services or concessions that might apply to your specific situation.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding Hobart's property taxes and fees is crucial for anyone considering property investment or relocation to Tasmania's capital city.
The combination of council rates, service charges, and separate utility costs creates a predictable annual expense structure that property owners can budget for effectively.
It's something we develop in our Australia property pack.
Sources
- Hobart City Council - Rates and Charges
- Hobart City Council - How Rates are Calculated
- Brighton Council - Rate Setting Information
- Hobart City Council - Rate Notices Information
- State Revenue Office Tasmania - Land Tax Rates
- State Revenue Office Tasmania - Land Tax Information
- Stackhaus Property Valuations - Hobart Market
- Central Coast Council - Rates Setting Process