Council Tax Explained
Bands still based on 1991 valuations, the single-person discount, and how the second-homes premium works
Council Tax is set locally, not nationally. Each council decides its own annual bill, so there's no single rate this page can quote the way it could for Income Tax. What is set nationally is the structure underneath every bill: which band a property falls into, and the fixed ratio between bands. That structure is what this page covers, along with two things that reduce or increase what's actually charged.
The bands: still based on 1991 property values
Every home in England is placed into one of eight Council Tax bands, A to H, based on what it was worth on 1 April 1991. Properties haven't been revalued since, so two homes worth wildly different amounts today can still sit in the same band if their relative values in 1991 were similar, and a home extended or improved since then generally isn't moved up a band until it's sold.
| Band | 1991 valuation (England) | Ratio to Band D |
|---|---|---|
| A | Up to £40,000 | 6/9 |
| B | £40,001 to £52,000 | 7/9 |
| C | £52,001 to £68,000 | 8/9 |
| D | £68,001 to £88,000 | 9/9 |
| E | £88,001 to £120,000 | 11/9 |
| F | £120,001 to £160,000 | 13/9 |
| G | £160,001 to £320,000 | 15/9 |
| H | More than £320,000 | 18/9 |
The ratio column is the fixed part, set out in the Local Government Finance Act 1992: Band A pays 6/9ths of Band D's bill, Band H pays 18/9ths, exactly double Band D, and exactly triple Band A, however much the actual pound amount turns out to be in any given council.
The single-person discount
Living alone, or living with others who are all "disregarded" for Council Tax purposes, such as full-time students, gets 25% off the bill.
Illustrative example
On a £2,000 annual bill, living alone reduces the amount by 25%: £500, leaving £1,500 payable.
(Your figures will be different, but the same principle applies).
The second-homes premium
From 1 April 2025, councils gained the power to charge up to an extra 100% on top of the standard bill for a second home, that is, a property that's furnished but not anyone's main residence. Not every council charges it, and where one does, "up to" is the important bit: the premium is a local decision, not a fixed national add-on. Long-term empty homes can attract an even steeper premium the longer they stay empty, under the same powers.
This page explains general Council Tax rules and is not personalised advice; see the disclaimer. Actual bills, discounts, exemptions, and premiums are set and administered by individual local authorities and vary significantly. Check your own council's website for the figures that apply to you. See also Other Taxes for Fuel Duty, car tax, Insurance Premium Tax, and Stamp Duty Land Tax, and Your Total Tax Burden for how everything you pay, including Council Tax, adds up overall.