Understanding your rates

Combined invoice for rates and IAWAI charges

Your rates invoice now shows your Council rates and IAWAI water charges separately.

That's because IAWAI – Flowing Waters is now responsible for providing drinking water and wastewater services to Hamilton City and Waikato District communities.

You'll still receive one invoice, make one payment to Hamilton City Council, and can continue using your usual payment method.

If you already pay your rates by automatic payment, your IAWAI water charges will be included automatically.

Example charges

For a median residential property with a capital value of $730,000:

Hamilton City Council rates increased from $2,866 to $3,064 (6.9% increase).
IAWAI water and wastewater charges increased from $952 to $1,128 (18.4% increase).
The combined annual cost increased from $3,819 to $4,193 (9.8% increase).

This 9.8% increase was broadly representative of what most Hamilton ratepayers experienced and was lower than the 14.6% increase originally forecast in Council's 2024-34 Long-Term Plan.

Where individual properties have experienced larger increases, there may be other property-specific factors influencing the overall change, such as changes in property value, rating classification, or property use.

See an example of the new combined invoice

Common questions about this change

What does this change mean for my rates?

Historically, around 30% of Council's rates funding related to the three waters services collectively: water supply, wastewater and citywide stormwater management.

From 1 July 2026, water supply and wastewater transferred to IAWAI, while stormwater remains a Hamilton City Council service and continues to be funded through rates.

As a result, for a median residential property, approximately 25% of the funding previously collected through rates moved to separate IAWAI water and wastewater charges.

Hamilton City Council rates and IAWAI water and wastewater charges did not increase by the same percentage in 2026/27, as Council and IAWAI each set their own charges independently.

If water charges were already included in rates, why has my bill increased?

The appearance of IAWAI water charges on your invoice does not mean you're being charged twice.

In 2025/26, water and wastewater services were already charged separately as targeted rates on your Council rates invoice. From 1 July 2026, responsibility for delivering water and wastewater services transferred to IAWAI - Flowing Waters, and those charges are now shown as IAWAI water and wastewater charges.

The change is who is charging for the service, not the introduction of a new charge. Water and wastewater services have continued to be included on the combined invoice so customers can receive a single invoice, and have greater transparency about the cost of delivering water and wastewater services.

Your total invoice may still be higher than last year because Council rates and water charges increased for 2026/27. On average, the combined increase is 9.8% compared with the previous year.

Is the IAWAI charge on top of my rates?

IAWAI water and wastewater charges are now separate from Council rates. However, they are not new charges and do not mean you are paying twice for water services.

Prior to 1 July 2026, water and wastewater services were funded through targeted rates charged by Hamilton City Council. Following the transfer of water services to IAWAI, those charges are now collected as IAWAI water and wastewater charges instead.

While the charges now sit separately from Council rates, they are not new charges. Property owners were already contributing towards the cost of water and wastewater services through targeted rates before these services transferred to IAWAI.

The charges are shown separately to provide greater transparency about the cost of delivering water and wastewater services and to clearly distinguish between charges set by Hamilton City Council and those set by IAWAI.

Your invoice combines both Council rates and IAWAI water and wastewater charges into a single amount payable.

Do I need to make a separate payment to IAWAI?

No. Continue paying Hamilton City Council exactly as you have before. One invoice, one payment.

My property’s capital value has gone down or stayed the same. Why am I paying more?

Capital value and rates are not the same thing.

A property's capital value helps determine how rates are distributed across the city, but it does not directly determine how much rates will increase or decrease each year.

Council is required to revalue every property in the city every three years. Hamilton's current rates are based on the citywide revaluation completed in 2024. This is the second year that the 2024 values have been used for calculating rates, with the next citywide revaluation expected in 2027.

Each year, Council sets its budget based on the services and infrastructure needed for the city. The amount each property contributes is then calculated using Council's rating system, as set out in the Revenue and Financing Policy.

For this year, Council rates increased by an average of 6.9%, excluding water services charges. When Council rates and IAWAI water charges are combined, the average increase is 9.8%.

Why are water charges increasing by a higher amount?

Across New Zealand a combination of increasing infrastructure costs, historic underfunding and increasing growth pressures meant a significant deficit had built up for waters investment.

This meant that in years ahead, large rates increases would be needed to deliver the required investment. IAWAI was formed as a joint council-owned company to set up and deliver water services more efficiently.

By working across boundaries, spreading costs and achieving economies of scale, IAWAI is able to deliver lower rates increases than what would otherwise be required.

General frequently asked questions

What are rates and how are they set?

Rates are an annual charge against a property set by Council in July of each year. Rates help us to fund the services we provide.

What do rates cost?

Find out the rates you’ll pay by searching our property search database.

Where do my rates go?

Your rates support a number of services essential to keep Hamiltonians healthy, safe and happy, such as:

water management
rubbish and recycling
burials and cemeteries
city planning and safety
transport
democracy
parks and recreation
arts and community groups.

A visual breakdown of what your rates fund is included in your rates.

How do I pay my rates?

Rates are invoiced in four instalments for the financial year that begins 1 July and ends 30 June the following year.

You can choose to receive your rates invoice by email and you can pay your rates by direct debit, credit card, internet banking or in person.

Pay in quarterly instalments by the due dates below, or annually in full. Paying by direct debit also allows you to pay in weekly, fortnightly, or monthly instalments. The full amount is detailed on the invoice to 30 June and will include any outstanding rates and penalties.

Pay your rates by the due date to avoid penalties. Your invoice will be posted or emailed around four to five weeks before they’re due. Find out more about how to pay rates.

When are my rates due?

2026/27 Instalment 1 3 September 2026

2026/27 Instalment 2 26 November 2026

2026/27 Instalment 3 4 March 2027

2026/27 Instalment 4 27 May 2027

What are rates based on?

Rates are based on:

the use of the property (e.g. residential/commercial)
the rating valuation of the property
the number of Separately Used or Inhabited Parts (SUIPs) of the property
the availability of services to the property (e.g. water, wastewater, refuse collection)
the location of the property if it is commercial (i.e. in the CBD or outside the CBD)

Council operates different rating categories. Different rates apply to the different categories: