Council Tax Bands Explained: How Your Bill Is Calculated
Council tax bands are based on your property value in 1991. Here is how the bands work, what each band pays, and why your neighbour might pay a different amount.
Council tax bands are based on what your property was worth in April 1991, not today. Band D is the standard reference point - if you’re in Band A you pay two-thirds of Band D, if you’re in Band H you pay double. Your actual bill depends on your local council’s rates.
Council tax funds local services - bins, streetlights, schools, social care. How much you pay depends on which band your property falls into and where you live.
How Bands Work
Every home in England and Scotland is placed in a band from A to H based on its value in April 1991. Wales uses a similar system but with different value ranges and an extra band (I).
England Council Tax Bands:
| 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%) |
The ratios look odd because Band D is the reference point and everything else is calculated from there.
Why 1991 Values?
Council tax was introduced in 1993, replacing the poll tax. The government valued all properties based on their market value in April 1991. These valuations have never been updated in England or Scotland, even though house prices have changed massively since then.
This creates some strange situations:
- A flat bought for £35,000 in 1991 might be worth £300,000 now but stays in Band A
- A larger house in a cheaper area might be in a higher band than a smaller flat in an expensive area
Wales revalued properties in 2003. England has discussed revaluation several times but never done it.
What You Actually Pay
Your bill = your council’s Band D rate × your band’s ratio
Each council sets its own Band D rate. This varies hugely:
| Council Type | Typical Band D Range |
|---|---|
| Low-charging councils | £1,200 - £1,500 |
| Average councils | £1,800 - £2,200 |
| High-charging councils | £2,300 - £2,500+ |
So Band D in one area might cost half what it costs in another. London boroughs tend to charge less than shire counties because they have different funding structures.
How to Find Your Band
Check GOV.UK and enter your postcode. You’ll see:
- Your current band
- Bands for other properties on your street
Comparing with neighbours can reveal whether your band seems right. If identical houses are in different bands, one of them might be wrong.
What Your Council Tax Pays For
Your bill is split between different authorities:
| Authority | Typical Share | What They Provide |
|---|---|---|
| District/Borough Council | 10-15% | Bins, housing, leisure, planning |
| County Council | 70-80% | Schools, social care, roads, libraries |
| Police | 10-15% | Local policing |
| Fire Service | 2-5% | Fire and rescue services |
| Parish Council (if applicable) | 1-3% | Local facilities, allotments |
Your bill shows this breakdown. County councils take the biggest share because they provide the most expensive services, especially adult social care.
Empty Properties
Councils can charge different rates for empty properties:
- Short-term empty - Some councils offer a discount for the first few months
- Long-term empty - Councils can charge up to 100% extra (double the normal rate)
- Second homes - Councils can charge up to 100% extra
These rules change by council and change over time as governments try to discourage empty homes.
Scotland and Wales Differences
Scotland:
- Same 8 bands (A-H) but different value ranges
- Based on 1991 values
- Single person discount still applies
Wales:
- 9 bands (A-I)
- Revalued in 2003 based on April 2003 values
- Different value thresholds
If you’re moving between countries, expect your band and rate to differ even for similar properties.
Common Questions
Why is my band higher than my neighbour’s? Properties were valued individually. Extensions, number of bedrooms, and other factors affect the band. Also, mistakes happen.
Can my band change? Only if you challenge it successfully, or if you make major alterations that change the property’s value category. Normal price increases don’t change your band.
What if I disagree with my band? You can challenge it, but be careful - the Valuation Office can also raise your band if they think it’s too low. See our guide on appealing your council tax band.
Do I pay less if I live alone? Yes, single adults get a 25% discount. See our guide on council tax discounts.