Daily Junction.mobi portalNews · July 16, 2026 · Daily Junction Editorial Team · 7 min
Council tax costs £2,065 per year on average (Band D) — here's how the bands work, why they're based on 1991 values, and how to challenge your band.
Council tax is a local property tax paid by every household in England, Scotland, and Wales to fund local services (bin collection, libraries, social care, police, fire). It costs an average of £2,065 per year (Band D, England, 2024–25), but can range from £1,400 to £2,500+ depending on where you live. Council tax is based on property values from 1991 (England and Scotland) or 2003 (Wales), meaning a house worth £500,000 today might be in Band C if it was worth £68,000–£88,000 in 1991. The system is outdated, regressive, and unfair, but no government has dared to reform it. Here is everything you need to know about council tax — how the bands work, how much you pay, and how to challenge your band.
Council tax is charged on domestic properties (houses, flats, bungalows). Each property is assigned a band (A–H in England and Scotland, A–I in Wales) based on its value in 1991 (England and Scotland) or 2003 (Wales).
The amount you pay depends on:
Council tax bands are based on 1991 property values (England and Scotland) or 2003 values (Wales).
| Band | 1991 property value | Average 2024-25 charge (Band D = £2,065) |
|---|---|---|
| A | Up to £40,000 | £1,377 (67% of Band D) |
| B | £40,001–£52,000 | £1,606 (78% of Band D) |
| C | £52,001–£68,000 | £1,836 (89% of Band D) |
| D | £68,001–£88,000 | £2,065 (100%) |
| E | £88,001–£120,000 | £2,524 (122% of Band D) |
| F | £120,001–£160,000 | £2,983 (144% of Band D) |
| G | £160,001–£320,000 | £3,442 (167% of Band D) |
| H | Over £320,000 | £4,130 (200% of Band D) |
Scotland has the same bands as England, but councils set different rates. The average Band D is £1,417 (2024–25), lower than England.
Wales revalued properties in 2003 and has 9 bands (A–I):
| Band | 2003 property value | Average 2024-25 charge (Band D = £2,064) |
|---|---|---|
| A | Up to £44,000 | £1,376 (67% of Band D) |
| B | £44,001–£65,000 | £1,605 (78% of Band D) |
| C | £65,001–£91,000 | £1,835 (89% of Band D) |
| D | £91,001–£123,000 | £2,064 (100%) |
| E | £123,001–£162,000 | £2,523 (122% of Band D) |
| F | £162,001–£223,000 | £2,982 (144% of Band D) |
| G | £223,001–£324,000 | £3,440 (167% of Band D) |
| H | £324,001–£424,000 | £4,128 (200% of Band D) |
| I | Over £424,000 | £4,816 (233% of Band D) |
Council tax was introduced in 1993, replacing the poll tax (a flat tax per person, which caused riots and brought down Margaret Thatcher).
Properties were valued in 1991 (England and Scotland) to determine the bands. The government has never updated the valuations (except Wales, which revalued in 2003).
Revaluation would be politically toxic:
Every government has avoided revaluation because it is politically unpopular. The result is a system based on 33-year-old valuations that bear no relation to current house prices.
A £500,000 house in London might be in Band C (£1,836 per year) if it was worth £68,000 in 1991.
A £150,000 house in the North might be in Band D (£2,065 per year) if it was worth £88,000 in 1991.
This is absurd and unfair, but no government has dared to fix it.
The amount you pay depends on:
Band A pays 67% of Band D, Band H pays 200% of Band D.
Councils set their own rates. The average Band D is £2,065 (England, 2024–25), but it ranges from:
Why the variation?
Single person discount (25% off): If you live alone, you get 25% off (not 50%).
Student discount (100% off): If all occupants are full-time students, you pay nothing.
Disabled band reduction: If your home is adapted for a disabled person (wheelchair access, extra bathroom), you move down one band (e.g., Band D pays Band C rate).
Care leaver discount (100% off): If you are under 25 and were in care, you pay nothing (until age 25).
Severe mental impairment exemption (100% off): If you have a severe mental impairment (dementia, learning disability), you are exempt.
Empty property: Empty properties pay 100% (some councils charge 150% to discourage leaving properties empty).
Second homes: Some councils charge 100% (no discount), others charge 150% or 200% (to discourage second homes).
If you think your council tax band is wrong (e.g., your 1991 valuation is too high), you can challenge it.
You can challenge if:
You cannot challenge just because your band seems unfair or because house prices have changed.
Only 15% of challenges succeed. If your challenge fails, you could be moved to a higher band (if the VOA decides your 1991 valuation was too low), so be careful.
Council tax is regressive — it takes a higher percentage of income from the poor than the rich.
Council tax is charged per property, not per person or income. A single person earning £20,000 pays the same as a couple earning £200,000 (minus the 25% single person discount).
Band H (properties over £320,000 in 1991, now worth £2 million+) pays only 3 times Band A (properties under £40,000 in 1991, now worth £100,000–£200,000).
But Band H properties are worth 10–20 times more than Band A properties. This is regressive — the rich pay proportionally less.
Council tax is not linked to income. A pensioner on £10,000 per year pays the same as a banker on £200,000 per year (if they live in the same band).
Using 1991 values means the system bears no relation to current house prices. A £500,000 house in London might pay less than a £150,000 house in the North.
Many economists argue that council tax should be replaced with a land value tax (LVT) — a tax on the value of land (not buildings).
Pros of LVT:
Cons of LVT:
No government has dared to introduce LVT, despite support from economists.
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