Paying council tax bills

How are council tax payments calculated?

Council tax makes up around a quarter of local authority incomes in England, Wales and Scotland. Most households pay council tax, but how much you pay depends on:

• The value of your house
• Your age
• Your income
• Who else lives with you

Your local council sends you an annual bill in March each year showing how much you need to pay. You can spread the cost over 12 months by paying in weekly or monthly instalments.

Council tax bills often show payments over 10 months, but your local authority must let you pay over 12 months if you ask.

You have less time to pay your council tax bill if you get it later than April. This may happen if you move house. You must pay the bill in full before the end of the following March.

In Scotland, council tax covers sewage and water charges. You must pay these, even if you are eligible for a council tax reduction.

What qualifies for council tax reduction?

You may qualify for a reduction if:

• You live on your own or the only other members of your household are full-time students, apprentices or considered ‘mentally impaired’
• You are above pension age
• Someone in your house is disabled and you have adapted your property
• You are on a low income or benefits

Local authorities have different schemes. Check with your council to apply.

Make sure you tell your local authority if your circumstances change in the year. They will send you an updated council tax bill.

Read our guides to saving money and increasing income.

Do I have to pay council tax if I am on benefits?

You may qualify for council tax reduction if:

• You are on a low income, or
• Your income is based on benefits

The council reduces your bill based on how much you earn.

All local authorities have different rules for who qualifies.

Use our free benefits calculator to find out which benefits you are entitled to.

Can I complain if I think my council tax bill is wrong?

Council tax is charged in bands based on the value of your house in 1991.

• More expensive houses are in a higher band and pay a higher annual council tax bill
• Band A is the cheapest and band H or I is the most expensive
• Your band is shown on your council tax bill

Ask for your house to be reassessed if you think your council tax band is wrong. You can save money if your house is changed to a lower council tax band. But the band could go up.

Contact your local authority first if you have any problems with council tax. Make a complaint if:

• You think you have been treated unfairly, or
• Your bill is wrong

You must give your local authority 12 weeks to reply to your complaint.

These independent organisations can offer more help if you are not happy with the reply.

• In England – Local Government Ombudsman
• In Wales – Public Service Ombudsman for Wales
• In Scotland – Scottish Public Service Ombudsman

Get help if you are struggling to pay your council tax

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