A betterment levy is a charge levied on real property (both owned and leased in perpetuity) by the local authority (municipality) in respect of approval of a plan, relief authorization or permit for exceptional use (variance) by the Local Zoning Board which improved the property and raised its value.

It is common practice in the course of a deal to sell property to negotiate between the buyer and the seller who will bear the costs of paying the levy. The levy equals half of the increase in value of the property. Note that there is a right to appeal the amount of the levy.