What is council tax?
Council tax is a yearly tax on homes in England, Scotland and Wales. It helps pay for local services like bins, social care and roads. Each home is placed in a band based on its value. In England the average Band D bill for 2026/27 is £2,392, up 4.9% on the year before.
Council tax replaced the poll tax in 1993. In England homes are placed in bands A to H based on what they would have sold for in April 1991. Wales uses bands based on 2003 values. Each council sets a Band D figure, and other bands pay a fixed fraction of it. Band A pays two thirds of Band D, while Band H pays double.
In 2026/27 English councils are raising £46.8 billion through council tax, and the average bill per home is £1,868. Councils in England cannot raise bills by more than 5% a year without a local referendum, though some struggling councils have been allowed more. Discounts exist, including 25% off for people who live alone, and help is available for low-income households. Students are usually exempt.
Critics say council tax is out of date and unfair. Because bands are based on 1991 values, a mansion may pay only around three times what a small flat pays. Homes have never been revalued in England, as it would create many losers. From April 2028 owners of homes worth over £2 million will also pay a new surcharge, nicknamed the mansion tax.
Who it affects: Every household in England
The left often argues council tax is regressive and should be reformed with more bands or replaced by a fairer property or land tax.
The right often focuses on keeping bills down, opposing large rises and calling for councils to cut waste instead.
Britain is split. Now you decide.
In WeDecide you can set the average council tax bill in your Budget and see how councils, households and your ratings react.
Play WeDecide freeCommon questions
What is the average council tax bill?
The average Band D bill in England for 2026/27 is £2,392.
How much can council tax go up?
Most English councils can raise it by up to 5% a year without holding a referendum.
Do single people pay less council tax?
Yes. If you live alone as an adult you usually get a 25% discount.