Council rates are likely to rise by up to 5 per cent across Victoria as the state's recycling crisis bites.

The Municipal Association of Victoria warns rates could increase between 1.1 and 2.5 per cent - on top of the 2.25 per cent state-mandated maximum rate rise.

China's ban on some recycling imports, including those from Australia, is behind the expected rates hike.

Victoria previously exported the vast majority of its recycling to China, where it was processed and used to fuel China's factories.

Major recycling companies including Visy, SKM and Polytrade would pay councils about $60 to $70 a tonne for the contents of residents' yellow bins and sell it to China at a higher price.