Hamilton's Mayor says a capital value rates system is the fairest way to calculate rates.

The Hamilton City Council has voted to changed its rates system from land value to capital value.

Mayor Julie Hardaker says rating systems are difficult at the best of times, but this is the best approach.

"It seems to deliver the most across the board fair approach. I think the other thing is this brings us into line with all the other major cities across New Zealand. The whole of the Waikato is on capital value rating."