NSW home owners will learn from May 1 exactly how much they will pay each year to fund fire and emergency services under a new system that will see an average $185 added to council rates notices.

Treasurer Dominic Perrottet will on Tuesday introduce legislation to usher in the Fire and Emergency Services Levy from July 1.

Currently three-quarters of the annual $950 million cost of funding Fire and Rescue NSW, the Rural Fire Service and the State Emergency Service is funded via a tax on insurance companies, passed onto customers via higher premiums.

The balance is funded by the state and a tax on councils.