Daily Junction.mobi portalNews · June 24, 2026 · Daily Junction Editorial Team · 8 min
Council tax funds local services like bins, libraries, and social care — here's how it's calculated, who pays, and what to do if your bill is wrong.
Every household in the UK pays council tax — a property tax that funds local services like bins, libraries, social care, and roads. The average bill in England is £2,065 per year (for a band D property), but it varies widely by area, from £1,200 in Westminster to £2,500 in Rutland. Council tax is one of the most unpopular taxes in the UK, criticised as unfair, regressive, and based on outdated property values from 1991. But it raises £40 billion per year, accounting for around 25% of council budgets, and without it, local services would collapse. Here is everything you need to know about council tax — how it works, what you pay, and how to appeal if your bill is wrong.
Council tax is a property tax charged by local councils to fund local services. It is based on the value of your property (as of 1991 in England and Scotland, or 2003 in Wales), divided into bands A–H.
Council tax is charged per property, not per person. The bill is sent to the liable person — usually the owner-occupier or tenant. If you rent, you are usually responsible for council tax (unless your tenancy agreement says otherwise).
Properties are divided into valuation bands based on their value in 1991 (England and Scotland) or 2003 (Wales). The bands are:
| Band | Property value (1991) | Average annual bill (2024-25) |
|---|---|---|
| A | Up to £40,000 | £1,377 |
| B | £40,001–£52,000 | £1,606 |
| C | £52,001–£68,000 | £1,836 |
| D | £68,001–£88,000 | £2,065 |
| E | £88,001–£120,000 | £2,524 |
| F | £120,001–£160,000 | £2,983 |
| G | £160,001–£320,000 | £3,442 |
| H | Over £320,000 | £4,130 |
The average band D council tax in England is £2,065 (2024–25), but it varies by area.
Scotland has the same bands as England, but the average band D council tax is £1,417 (2024–25), significantly lower than England.
Wales has nine bands (A–I) based on 2003 values, which are higher than 1991 values. The average band D council tax is £1,898 (2024–25).
Northern Ireland does not have council tax. Instead, it has domestic rates, a similar property tax based on property values from 2005. The average domestic rates bill is around £900 per year, much lower than council tax in England, Scotland, or Wales.
Your council tax bill is set by your local council, based on the services it provides and the amount of money it needs to raise.
The bill is split between:
Each body sets its own precept (the amount it charges), and the total is your council tax bill.
Council Tax Support (also called Council Tax Reduction) is a means-tested discount for people on low incomes or benefits. It can reduce your bill by up to 100%.
Eligibility varies by council, but you may qualify if you:
Apply through your local council's website.
If you believe your property is in the wrong band, you can challenge your band with the Valuation Office Agency (VOA) in England or Wales, or the Scottish Assessors in Scotland.
You can only challenge your band if:
You cannot challenge your band just because:
The VOA will review your challenge and may:
If your challenge succeeds, you will get a refund for overpaid council tax (backdated to when you moved in or when the error occurred).
If you do not pay your council tax, your council will:
Around 1.5 million liability orders are issued each year in England, and around 100 people are imprisoned for non-payment of council tax each year (usually for refusing to pay, not for inability to pay).
Council tax is one of the most unpopular taxes in the UK, for several reasons:
Council tax is based on property values, not income. A millionaire and a minimum-wage worker living in similar properties pay the same amount. This makes it regressive — it takes a larger share of income from poorer households than richer ones.
Properties are valued based on 1991 prices (in England and Scotland), which are wildly out of date. A property worth £40,000 in 1991 might be worth £400,000 today, but it is still in band A. This creates huge distortions, with some properties massively under-taxed and others over-taxed.
Successive governments have refused to revalue properties, because it would create political winners and losers, and no government wants to tell millions of people their council tax is going up.
Council tax has risen by 52% in real terms since 2010, while council budgets have been cut by 21%. Councils have been forced to raise taxes and cut services, and residents are paying more for less.
Council tax varies widely by area, from £1,200 in Westminster to £2,500 in Rutland. This is because councils set their own rates, and areas with higher costs (social care, deprivation) or lower tax bases (fewer properties, lower property values) charge more.
Several alternatives have been proposed:
A tax on the value of land (not buildings), which would be more progressive and harder to avoid. Supporters include economists and the Liberal Democrats. Critics say it would be complex to implement and would hit farmers and landowners.
A tax based on income, not property values, which would be more progressive. Scotland considered this in the 2000s but rejected it as too complex.
Update property values to reflect current prices, which would make council tax fairer. But this would create political winners and losers, and no government has been willing to do it.
Replace bands with a percentage of property value (e.g., 0.5% per year). This would be simpler and more progressive, but would require revaluation.
![[View image]](/img/uk-council-tax-explained-2026.jpg){kind=link}