Council tax is one of the largest household bills, yet many people don't fully understand how it's calculated or what discounts they might be entitled to. This comprehensive guide explains everything you need to know about council tax bands in England.
Council Tax Bands Explained
Properties in England are placed into one of eight bands (A to H) based on their value on 1 April 1991. Yes, the valuations are still based on 1991 prices, regardless of what your property is worth today.
| Band | 1991 Property Value | Ratio to Band D |
|---|---|---|
| A | Up to £40,000 | 6/9 (67%) |
| B | £40,001 - £52,000 | 7/9 (78%) |
| C | £52,001 - £68,000 | 8/9 (89%) |
| D | £68,001 - £88,000 | 9/9 (100%) |
| E | £88,001 - £120,000 | 11/9 (122%) |
| F | £120,001 - £160,000 | 13/9 (144%) |
| G | £160,001 - £320,000 | 15/9 (167%) |
| H | Over £320,000 | 18/9 (200%) |
How Council Tax is Calculated
Your council tax bill depends on three main factors:
- Your property's band (based on 1991 valuation)
- Your local council's rates (varies significantly by area)
- Any discounts or exemptions you qualify for
Example Calculation
Band D rate for your area: £1,800/year
Your property: Band C
Calculation: £1,800 × (8/9) = £1,600/year
Monthly: £133.33 (over 12 months) or £160 (over 10 months)
Try Our Free Council Tax Calculator
Find your council tax band and calculate what you should be paying. Get instant results with our Council Tax Calculator. You may also find our Tax Calculator, Income Tax Calculator and Salary Calculator useful.
Council Tax Discounts
Single Person Discount
Live alone or only with exempt people
All Full-Time Students
Household of only full-time students
Severe Mental Impairment
Person disregarded for council tax
Empty Property
Unfurnished for up to 6 months
Who Counts as "Disregarded"?
These people don't count towards the household for council tax purposes:
- Full-time students
- People with severe mental impairment
- Live-in carers (not spouse/partner)
- 18-19 year olds in full-time education
- Student nurses
- Apprentices earning under £195/week
- Young people in certain government schemes
Council Tax Reduction (Support)
If you're on a low income, you may qualify for Council Tax Reduction (previously called Council Tax Benefit). This can reduce your bill by up to 100% depending on your circumstances.
You may qualify if you:
- Receive Universal Credit
- Receive Pension Credit
- Are on a low income (thresholds vary by council)
- Have savings under £16,000 (usually)
Council Tax Exemptions
Some properties are completely exempt from council tax:
Class L - Mortgage Repossession
Property taken over by a mortgage lender
Class M - Student Halls
Halls of residence mainly for students
Class N - Occupied by Students Only
Dwelling occupied only by full-time students
Class U - Severely Mentally Impaired
Occupied only by people who are severely mentally impaired
Class W - Granny Annexes
Self-contained unit occupied by dependent relative
Challenging Your Council Tax Band
You can challenge your band if you believe it's wrong. Common reasons include:
- Similar neighbouring properties are in a lower band
- Property characteristics have changed (demolition, part removal)
- The original valuation was incorrect
- You've just moved in (new occupiers can challenge within 6 months)
How to Challenge
- Check your neighbours' bands on the VOA website
- Research sold prices from 1991 (or estimate backwards)
- Submit a challenge via the VOA website
- Wait for review (can take several months)
- Appeal to Valuation Tribunal if you disagree with the decision
2025/26 Council Tax Rates (Examples)
Council tax varies significantly by location. Here are some examples of Band D rates:
| Council Area | Band D Rate | Band A Rate |
|---|---|---|
| Westminster | ~£900 | ~£600 |
| Manchester | ~£1,750 | ~£1,167 |
| Birmingham | ~£1,850 | ~£1,233 |
| Nottingham | ~£2,200 | ~£1,467 |
| Dorset | ~£2,300 | ~£1,533 |
Payment Options
- 10 monthly instalments: Standard option (April to January)
- 12 monthly instalments: Available on request
- Direct debit: Most councils offer various dates
- Annual payment: Some councils offer a small discount
Scotland and Wales
Council tax systems differ slightly:
- Scotland: 8 bands (A-H) but different value thresholds and no single person discount reduction (it's 25% same as England)
- Wales: 9 bands (A-I) based on 2003 valuations, different value thresholds
- Northern Ireland: Uses a rates system based on capital value, not council tax
How Council Tax Bands Work: The Complete Picture
Council tax is one of the most significant household bills for UK residents, yet many people do not fully understand how their band is determined or whether they are paying the correct amount. The system was introduced in 1993 to replace the controversial Community Charge (poll tax) and is based on property valuations carried out by the Valuation Office Agency (VOA) in England and Wales.
Properties in England and Scotland are placed into bands A through H based on their estimated value as of 1 April 1991 (England and Scotland) or 1 April 2003 (Wales). This means your band reflects what your property would have been worth over 30 years ago, not its current market value. Band A covers properties valued at up to £40,000 (in 1991), while Band H covers those valued at over £320,000. The ratio between the lowest and highest bands is 1:3, meaning a Band H property pays three times as much as a Band A property.
Each local authority sets its own council tax rates, which is why identical properties in neighbouring councils can face significantly different bills. The average Band D council tax in England for 2025/26 varies from around £1,200 in some London boroughs to over £2,200 in certain rural districts. This variation reflects differences in local spending needs, government grants received, and the mix of property bands within each area.
Council Tax Discounts and Exemptions
Several important discounts and exemptions exist that many eligible households fail to claim. The single person discount provides a 25% reduction if only one adult lives in the property, saving a typical Band D household £400-500 per year. Full-time students, people with severe mental impairments, and live-in carers are all disregarded for council tax purposes, meaning they do not count towards the number of occupants.
If you believe your property is in the wrong band, you have the right to challenge it through the VOA. Successful appeals can result in being moved to a lower band with backdated refunds. Common grounds for appeal include evidence that similar nearby properties are in lower bands, or that your property's characteristics (size, location, condition in 1991) do not match the assigned band. The VOA's own online tool allows you to check and compare property bands in your area.
Reducing Your Council Tax Bill
Beyond the single person discount, councils offer a Council Tax Reduction scheme (formerly Council Tax Benefit) for people on low incomes, including pensioners, those receiving Universal Credit, and other benefit recipients. The amount of reduction varies by council but can be up to 100% of your bill. Apply directly to your local authority, as this support is not automatically awarded even if you receive other benefits.
If you are struggling to pay, contact your council immediately rather than ignoring the bill. Most councils offer flexible payment plans, and some have hardship funds for exceptional circumstances. Falling behind on council tax can escalate quickly, with enforcement agents (bailiffs) being instructed after a liability order is obtained from the magistrates' court, adding significant costs to the original debt.
Can I appeal my council tax band?
Yes, you can challenge your council tax band through the Valuation Office Agency (VOA) in England and Wales, or the Scottish Assessors Association in Scotland. You can appeal if you believe the band is wrong based on the 1991 (or 2003 in Wales) valuation, if there has been a material change to the property or area, or if you are a new occupant. The process is free, but be aware that a review could result in your band being increased as well as decreased.
What happens if I cannot afford to pay council tax?
Contact your local council immediately to discuss options. You may be eligible for Council Tax Reduction (up to 100% discount for those on lowest incomes), payment plan restructuring, or hardship assistance. Ignoring council tax arrears can lead to court summons, liability orders, bailiff action, attachment of earnings, or even imprisonment in extreme cases. Early communication with your council is always the best approach.
Do empty properties pay council tax?
Most empty and unfurnished properties receive a council tax discount or exemption for a limited period, typically the first one to six months depending on the council. After this period, the full charge applies, and some councils levy a premium of up to 100% on properties empty for more than two years, rising to 300% for properties empty over ten years. Second homes may also face premium charges in many areas.
How are council tax bands calculated and when were properties last valued in England?
What discounts and exemptions are available for council tax in the UK?
How do I challenge my council tax band if I think my property is in the wrong band?
James Mitchell, ACCA
Chartered Accountant & Former HMRC Advisor
James is a Chartered Certified Accountant (ACCA) specialising in UK personal taxation and financial planning. With over 12 years in practice and a background as a former HMRC compliance officer, he brings authoritative insight to complex tax topics.