Council Tax is the annual local government tax on residential property in the UK. Based on eight valuation bands set using 1991 property values, it affects almost every household — whether you own or rent, occupy or leave empty. This guide covers every band, discount, exemption and premium charge in plain English. Part of our property and land tax hub.
Council Tax funds local services — roads, refuse collection, schools, social care. Almost every household in the UK pays it. Here's how the system works.
Per HMRC and GOV.UK's published Council Tax guidance, Council Tax is charged by your local council based on the valuation band of your property and the annual Council Tax rate set by that council. Unlike income tax or stamp duty, Council Tax is not set centrally by the UK Government — each local council sets its own rate each April, subject to a cap on annual increases without a local referendum (currently 5% without a referendum in England).
The valuation bands in England are based on estimated property values in April 1991. Wales revalued in 2003. Scotland uses a slightly different band structure. Northern Ireland uses Rates rather than Council Tax. If your property was built after 1991, the Valuation Office Agency (VOA) estimates what it would have been worth in April 1991 to determine the band.
HMRC's Council Tax guidance — including how to appeal your band, apply for discounts, and manage empty properties — is published at GOV.UK: Council Tax. Your local council's website will have your specific annual charge for 2026/27.
Per GOV.UK's published guidance, there are eight Council Tax bands in England (A to H), determined by the estimated value of a property in April 1991. The actual amount you pay per band is set by your local council each April — the bands below show the relative ratios of each band, with Band D as the reference point. A Band A property pays 6/9ths of the Band D charge; a Band H property pays 18/9ths (double).
| Band | 1991 estimated value | Ratio (Band D = 1) | Notes |
|---|---|---|---|
| A | Up to £40,000 | 6/9 (0.67) | Lowest charge — 6/9ths of Band D |
| B | £40,001 – £52,000 | 7/9 (0.78) | |
| C | £52,001 – £68,000 | 8/9 (0.89) | |
| D | £68,001 – £88,000 | 9/9 (1.00) | Reference band — most quoted council rates |
| E | £88,001 – £120,000 | 11/9 (1.22) | |
| F | £120,001 – £160,000 | 13/9 (1.44) | |
| G | £160,001 – £320,000 | 15/9 (1.67) | |
| H | Above £320,000 | 18/9 (2.00) | Highest charge — double the Band D amount |
Source: GOV.UK — Working out your Council Tax. These are the relative ratios; the actual £ amount per band varies by local authority and is set each April. Contact your local council or check their website for your 2026/27 bill.
Because bands were set based on 1991 valuations by the Valuation Office Agency (VOA), errors do occur — especially for properties that have been substantially altered, split into flats, or compared against incorrect comparable properties. Per GOV.UK, you have the right to challenge your Council Tax band. If you believe your band is too high, you can apply to the VOA for a review — but be aware that a review can also result in your band going up, not just down.
Per GOV.UK's published guidance, several Council Tax discounts and reductions are available. The most common is the 25% single-person discount — available to any household where there is only one adult resident. You apply for this directly to your local council.
Separate from the fixed percentage discounts above, Council Tax Reduction (CTR) — formerly Council Tax Benefit — is an income-based scheme administered by local councils to reduce the Council Tax bill of households on low incomes. Each council operates its own CTR scheme with different eligibility thresholds. Apply directly to your local council. Our AI Tax Assistant can help you understand which discounts and reliefs might apply to your situation.
Per GOV.UK guidance, certain properties and certain people are fully exempt from Council Tax. Exemptions fall into two categories: exempt properties (regardless of who lives there) and exempt people (who are disregarded when counting adults in the property).
Per GOV.UK's published guidance, councils in England can charge premium Council Tax rates for properties that have been empty for extended periods — designed to incentivise owners to bring empty homes back into use. From April 2024, councils were given expanded powers to charge higher premiums from year one.
| Duration empty | Maximum premium councils can charge |
|---|---|
| Up to 1 year | Up to 100% premium (from April 2024 — councils' discretion) |
| 1–2 years | Up to 100% premium |
| 2–5 years | Up to 100% premium |
| 5–10 years | Up to 200% premium |
| 10+ years | Up to 300% premium |
Source: GOV.UK — Council Tax: second homes and empty properties. Premiums are charged at the council's discretion — not all councils apply all premiums. Check your local council's policy.
Per GOV.UK guidance, from April 2025 councils in England can also charge up to a 100% premium on second homes (furnished properties that are not someone's main home). Wales already applies similar premium rules through Welsh Government direction. This means owning a furnished second home that you occasionally use could result in a Council Tax bill double the standard Band D charge. Check your local council's specific policy — some councils apply the full premium; others do not.
Per GOV.UK's published guidance, you can challenge your Council Tax band if you believe your property has been placed in the wrong band. The process starts with the Valuation Office Agency (VOA), which handles band reviews. If the VOA refuses to change the band, you can appeal to the independent Valuation Tribunal.
Before challenging your Council Tax band, note that a VOA review can result in your band being increased, not just decreased or confirmed. This is rare, but it does happen — particularly for properties that have been significantly extended or improved since their original valuation. Research comparable properties carefully before initiating a challenge. Our AI Tax Assistant can help you understand the process and what to check first.
Whether you're querying your band, claiming a discount, challenging a premium on an empty property, or dealing with a Council Tax compliance notice, our expert matching service connects you with the right professional for your situation.
Find a property tax expert →The most frequently asked Council Tax questions, answered using GOV.UK guidance.
Free guidance on bands, discounts and empty property rules. For complex queries or challenges, our experts can help you navigate your local authority and the VOA.
Guidance, not advice. Based on GOV.UK published rules for 2026/27. Council Tax rates are set locally — always check with your local council for your specific 2026/27 charge. Always verify at GOV.UK.
