How it works
Who pays Council Tax and how it's banded
Council Tax is the tax you pay to your local council (or unitary authority) for services like bin collection, street lighting, adult social care, parks, libraries and policing. Every residential property in England, Wales and Scotland is placed in a valuation band set by the Valuation Office Agency (VOA), based on what the property would have sold for on 1 April 1991 (April 2003 in Wales). That date is not a typo — the UK has never revalued properties since.
Who actually gets the bill follows a hierarchy. The person who lives there as their main home pays first; if no one lives there, it falls to the owner. In rented flats it's almost always the tenant.
The 2025/26 bands (England)
Here are the 1991 property-value bands and the fixed legal ratios against the council's Band D rate. Your bill is Band D × the ratio shown.
| Band | 1991 value | Ratio vs Band D | Typical 25/26 bill* |
|---|---|---|---|
| A | Up to £40,000 | 6/9 (0.667) | £1,447 |
| B | £40,001 – £52,000 | 7/9 (0.778) | £1,688 |
| C | £52,001 – £68,000 | 8/9 (0.889) | £1,930 |
| D | £68,001 – £88,000 | 9/9 (1.000) | £2,171 |
| E | £88,001 – £120,000 | 11/9 (1.222) | £2,654 |
| F | £120,001 – £160,000 | 13/9 (1.444) | £3,136 |
| G | £160,001 – £320,000 | 15/9 (1.667) | £3,619 |
| H | Over £320,000 | 18/9 (2.000) | £4,343 |
How your council actually sets the rate
Every year each council publishes its own Band D figure. Three elements usually combine on your bill: the borough/district council share, the county/mayoral/police share, and the parish precept (small rural councils). Cities like Westminster have some of the lowest rates, while rural areas in Nottinghamshire and Rutland often top the tables.
Councils are capped at 5% increases without a local referendum (3% basic + 2% adult social care precept for councils with social-care responsibility). When you see a "2% rise," that's above the previous year's figure, so compounding adds up fast.
Discounts and exemptions
- Single Person Discount — 25% off if you're the only adult in the property.
- Student discount — a property occupied only by full-time students (including international students) is completely exempt.
- Severely Mentally Impaired (SMI) discount — the person isn't counted for Council Tax, which often means 25% or 100% off.
- Second home & empty property surcharges — up to 100% premium after the property has been empty for 1 year (some councils wait 2), and up to 300% after 10 years.
- Disabled band reduction — a property with substantial adaptations is re-billed at the band below.
- Council Tax Reduction scheme — for those on low incomes or benefits; each council runs its own scheme.
Can I challenge my band?
Yes, but carefully. You contact the VOA and ask for a Band Review. They'll compare with neighbours and similar properties. Warning: they can rebanded you up if the evidence supports it. The safer method is to compare your band on the VOA website against visibly similar neighbours — if yours is the only Band E in a row of Band Ds, you have a strong case.
For Wales, the revalued 2003 bands still apply. Scotland uses bands A–H based on 1991 values like England.
Paying the bill
Most councils default to 10 monthly instalments from April to January. You have a statutory right to ask for 12 instalments (April to March), which smooths cashflow. Paying by Direct Debit is almost always discounted slightly.
If you struggle to pay, contact your council before defaulting — they almost always prefer a payment plan to a liability order, which adds fees. Citizens Advice also have free help.