Auckland mayor Len Brown says it would further complicate and distort the rates systems to put a cap on increases.
The city's household rates were set to rise on average by 5.6 percent next year.
Councillors decided not to try to smooth out some big rises and falls in individual bills, brought about by the three-yearly property re-valuations.
A quarter of Auckland households were set to pay less next year than this year, but a slightly larger number would face increases of more than ten percent.
Mr Brown said there was still eight months of work and consultation to do before the rates were finalised, and the council had sought to keep bills down by cutting capital expenditure.
He said capping the rates increase was not the answer.
"All that will do is further distort and complicate the rating base, what we're saying is that if your property value has gone up more than your average then you need to pay the rate in the dollar that the people on that property value pay.
"That is the whole reason why we amalgamated to one rating system."
Aucklanders were initially promised no more than a 2.5 percent rise by Mr Brown while he was campaigning for another term as mayor.