Betterment Levy Calculator

Work out betterment levy instantly with clear inputs, formula shown and shareable results.

About Betterment Levy Calculator

A betterment levy recovers part of the increase in land value created by public investment, such as a new road, metro station or change of zoning. The levy applies to the uplift above an exempt threshold, so the effective rate on the whole increase is always lower than the headline rate.

Formula

Betterment levy

Levy = (value after - value before - exemption) x levy rate

Worked example

With the default values below, Betterment Levy Calculator returns Betterment levy payable of $1,050,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Land value before the schememinimum 0: 8,000,000
Land value after the schememinimum 0: 12,000,000
Betterment levy rateaccepts 1–100 %: 30 %
Exempt thresholdminimum 0: 500,000

Results

Betterment levy payable: $1,050,000.00
Increase in land value: $4,000,000.00
Amount subject to the levy: $3,500,000.00
Levy as share of the value increase: 26.25% %

Step by step

1Values used
2Betterment levy
3Betterment levy payable= 1,050,000.00
4Increase in land value= 4,000,000.00
5Amount subject to the levy= 3,500,000.00
6Levy as share of the value increase= 26.25 %

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Preliminary estimate only. Betterment levy rules, rates and valuation dates are set by statute and vary by jurisdiction.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Preliminary estimate only. Betterment levy rules, rates and valuation dates are set by statute and vary by jurisdiction.

Frequently Asked Questions

How is the Betterment Levy figure worked out?

Levy = (value after - value before - exemption) x levy rate. A betterment levy recovers part of the increase in land value created by public investment, such as a new road, metro station or change of zoning.

Why does the public sector levy the uplift?

Because the increase arises from public spending, not from anything the owner did. Recovering part of it funds the infrastructure and reduces windfall gains from rezoning decisions.

What values do I need to enter?

This calculator takes 4 inputs: Land value before the scheme, Land value after the scheme, Betterment levy rate, Exempt threshold. The pre-filled defaults are a realistic worked example — replace them with your own site or project figures.