RATEPAYERS will pay an extra $200 million to have their rubbish bins emptied and to dump waste at local tips because of the government's carbon tax.

The Landfill Owner's Association, which calculated carbon tax costs for 200 of the nation's dumps, said charges at landfills would cover methane emitted by garbage.

Spokesman Max Spedding said the dumps were in the top 500 polluters which will be subject to a $23-a-tonne carbon tax from next July.

He said operators would pass costs on to clients, including councils, leading to rate rises.

The revelation comes after Prime Minister Julia Gillard this month compared the carbon tax with putting a price on dumping rubbish at the tip.

"When I was young you used to be able to go to the tip for absolutely nothing," Ms Gillard said.

"Just put whatever you wanted to into the tip, then of course fees got introduced and that made people think, 'Can I reuse this rubbish? Can I recycle this rubbish? How can I reduce the amount that I am going to take to the tip?'

"It's a similar concept."

Mr Spedding said the industry supported a carbon tax but said it needed more time to invest in equipment to capture methane, which can be turned into electricity.

Instead of buying piping and extraction equipment, he said the industry would have to pay the extra tax slug.

"In 2012-13, no one will be in a position to reduce their emissions; they have to invest in infrastructure that costs millions of dollars," he said.

Some dumps already have methane extraction equipment and Mr Spedding said 60 per cent of the gas could potentially be captured and used to make electricity.

Opposition climate spokesman Greg Hunt said the rise in landfill costs would hit families.

"It will hit both families directly at the tip and indirectly through their council rates which will go up each year, every year forever on top of other rises," he said.

A spokesman for Climate Change Minister Greg Combet said waste could make methane for 20 years and compensation to households would take landfill costs into account.

"The carbon price will be applied to landfills to provide incentives for better capturing of methane emissions and generation of power from waste in landfills," he said.

"It does this by putting a price on the carbon pollution from new waste deposited in landfills after July 1, 2012."