What Is Council Tax in England, How Much Is It and Who Pays?
Written by: Marcus M. Araz, MBA, PhD · Updated:
Council tax is the annual tax the occupier of a home in England pays to the local council; if the flat is let, the tenant normally pays. The amount depends on the home’s band (A to H), set on 1991 values, and on the council. In 2026/27 the average Band D council tax in England is £2,392 a year, up £111 (4.9%) on the previous year. The gap between councils is large: Band D is £1,028.21 in Wandsworth in London and £2,765.02 in Dorset.
Bands and average amounts
| Band | Value on 1 April 1991 | Ratio to Band D | England average, annual (2026/27) |
|---|---|---|---|
| A | Up to £40,000 | 6/9 | £1,595 |
| B | £40,001 to £52,000 | 7/9 | £1,860 |
| C | £52,001 to £68,000 | 8/9 | £2,126 |
| D | £68,001 to £88,000 | 9/9 | £2,392 |
| E | £88,001 to £120,000 | 11/9 | £2,924 |
| F | £120,001 to £160,000 | 13/9 | £3,455 |
| G | £160,001 to £320,000 | 15/9 | £3,987 |
| H | Over £320,000 | 18/9 | £4,784 |
The band is set by the Valuation Office Agency (VOA) based on what the home would have been worth on 1 April 1991; for new buildings a retrospective estimate to that date is made. Today’s price does not change the band. Each band’s amount is a fixed ratio of Band D; the table shows England averages, and your council may be lower or higher. You can find a home’s band by postcode on GOV.UK .
Who pays
| Status | Who pays council tax |
|---|---|
| You live in the home | You |
| The flat is let (single tenant or family) | The tenant |
| The flat is empty (including between tenancies) | The owner |
| House in multiple occupation let by the room (HMO) | The owner (usually included in the rent) |
| Only full-time students live there | Nobody; the home is exempt |
For an investor, the upshot is that when you let your flat on a long-term tenancy, council tax is not your cost. It only enters your expenses when the flat is empty or in houses let to students by the room. For the rental income calculation, see our UK rental income tax page.
Discounts and exemptions
- Single person discount: if only one adult aged 18 or over lives in the home, the bill is reduced by 25%.
- Student exemption: if only full-time students live in the home, no council tax is due. If a student lives with a non-student, the student is disregarded and the non-student can get the single person discount.
- Low income support: councils run their own reduction schemes for low income households.
Empty home and second home premiums
Councils can charge a premium on homes that are long-term empty and unfurnished: up to double the bill after one year, triple after five years and four times after ten years. Since April 2025 councils can also charge a premium of up to 100% on furnished second homes where no one lives permanently. These decisions vary by council; if your flat will be empty for most of the year, ask the council about its current policy.
For owners living abroad
- When you let the flat, the tenant must register with the council; the tenancy agreement should state clearly that the tenant pays council tax.
- Between tenancies the bill comes to you. Your letting agent notifies the council of this period.
- If you use the flat yourself for part of the year, it counts as a second home and may attract a premium.
- Council tax is separate from the stamp duty paid on purchase (see ourcalculator) and from the building service charge (Service charges).
Frequently asked questions
How much is council tax in England? In 2026/27 the average for a Band D home in England is £2,392 a year. It varies by band and council; Band D is £1,028.21 in Wandsworth and £2,765.02 in Dorset.
Does the tenant or the landlord pay council tax? As a rule the occupier, that is the tenant, pays. The owner pays when the home is empty and in houses in multiple occupation let by the room (HMOs).
Do students pay council tax? Not if only full-time students live in the home; it is exempt.
Is there a discount if I live alone? Yes. If only one adult aged 18 or over lives in the home, the bill is reduced by 25%.
How is the council tax band set? The Valuation Office Agency (VOA) sets it based on the home’s estimated value on 1 April 1991. You can check the band by postcode on GOV.UK.
Do I pay council tax on my empty flat? Yes. For an empty home the bill goes to the owner, and the council can charge a premium on homes empty for more than a year.
Related pages
The cost of buying a home in the UK, UK rental income tax and Is buying in London a good idea.
Sources
The 2026/27 amounts are based on the Ministry of Housing, Communities and Local Government (MHCLG) council tax statistics . For bands, discounts and premium rules, see GOV.UK. Average band amounts are calculated by multiplying the Band D average by the statutory ratios. Bands and ratios differ in Wales and Scotland.
Legal notice
capital.works® (YATIRIM UK LIMITED) is a real estate advisory company; it does not provide legal or tax advice. The title and contract process is carried out by a solicitor registered in the UK. On the mortgage side, our FCA authorisation applies (FRN 1049015, authorised credit broker).
The next step
Let us add the band and local council tax for the project you are looking at to a net yield calculation, together with the service charge and rent estimate: Contact us.