How Council Tax Works in the UK: A Simple Guide

2025-04-08

Council tax is a local charge set by your local authority to help pay for services in your community. Whether you own or rent your home, it’s important to understand how council tax works, who needs to pay, and what discounts or exemptions might be available.

What Is Council Tax?

Council tax is a fee collected by local councils to fund essential services such as:

Rubbish collection
Police and fire services
Local schools and libraries
Road maintenance and street cleaning

The amount you pay depends on your property’s value, where you live, and your personal circumstances.

Who Has to Pay Council Tax?

Council tax is usually paid by:

Homeowners
Tenants (if not included in rent)
Occupiers over 18 years old

Only one bill is sent per household. If multiple adults live in a property, they are usually jointly responsible.

Exceptions and Discounts

Some people may not have to pay council tax or could get a discount:

Full-time students are usually exempt
Single occupiers can get a 25% discount
People with disabilities may qualify for a reduced bill
Certain second homes or empty properties may receive a discount or be charged extra

Council Tax Bands

Each property is placed in a council tax band (A to H in England) based on its market value as of 1991. Band A is the lowest, and Band H is the highest. Your local council sets the rate for each band every year.

Paying Your Council Tax

Council tax is typically paid monthly over 10 or 12 instalments. You can pay:

Online
By Direct Debit
Over the phone
Through your bank

If you miss a payment, your council will usually contact you with reminders. Consistently missed payments can lead to legal action, so it’s important to stay on top of your bill.

Second Homes and Empty Properties

Second homes may get a discount, but councils can charge full council tax or more. Empty properties are sometimes eligible for discounts, but again this depends on local council policies. In some cases, a premium may be added to long-term empty homes.

Students and Disabled People

Full-time students are generally exempt from paying council tax. If you live in a household where everyone is a full-time student, you won’t have to pay at all.

If you or someone you live with is disabled and your home has been adapted, you may be eligible for a reduced council tax band.

Understanding council tax is essential for anyone living in the UK. From knowing who is responsible to discovering if you’re eligible for a discount or exemption, it’s worth checking the rules that apply to your situation.

For the most accurate information, visit gov.uk/council-tax or contact your local council directly.