What is Council Tax?

Council Tax is a compulsory sum of money charged to persons based on their property size, cost and location.

The amount you pay depends on bands. A being the lowest and H being the highest. Bands are determined by property value, property size, location and the amount of people living in your property.

In England, homeowners council tax bills fund a wide range of local services, all provided by your local authority. Rules may differ in Scotland, Wales and Northern Ireland.

Where does my money go?

Here is a breakdown of where your money typically goes:

Local services - provided by your local council

Adult social care inc. caring for the elderly and disabled
Children's services inc. child protection and family support
Weekly bin and recycling collection.

This includes collection of general household waste, recycling and food waste. Part of the fees also includes the emptying of street bins and fly tipping removal.

Street cleaning
Funding libraries and leisure centres
Planning and building control
Local road maintenance

This includes maintaining local roads, pavements, road signs, markings, drainage, gullies and potholes. Roads are gritted during winter and cleared when snowing.

Maintaining parks and public spaces

Emergency services

Local policing

This includes neighbourhood and community policing, emergency response calls, road traffic policing, counter-terrorism and safeguarding and domestic abuse. It also funds police cars, equipment, uniforms, salaries, control room operations and so much more.

Crime prevention measures
Victim support
Fire prevention education in schools
Fire service operations

In some areas of London and Manchester, part of the bill goes to regional authorities that take care:

Public transport like Transport for London
Economic development
Strategic planning

How do I pay my bill?

The most popular payment method is via Direct Debit. This is the easiest and most reliable method. Home owners can choose to pay either annually or in 10 or 12 monthly installments.

Paying online with a debit or credit card is another payment option. Recommended for one off payments or clearing arrears.

Two further options are available for those who do not use the internet. Most councils have a 24 hour automated line for payments by card. But for those wanting to pay cash, some councils allow in person payments via the post office and local council offices.

Are there any discounts?

Yes, discounts on Council Tax payments are available. You could be eligible if you are:

A single person household. Anyone aged 18 or older living alone will receive 25% off their bill

Disregarded. Those who fall within this category may qualify for up to 50% discount.

On certain apprentice schemes
A full time student at college or university
A student nurse
Severely mentally impaired
Are in prison

Disability Reduction Scheme. If a home has been adapted for a resident with permanent disabilities, you may be charged the band below what you actually are.

Council Tax Reduction. Available for low income households and those claiming certain benefits. You could receive 100% off your bill. Eligibility depends on:

Income and savings
Family and household size
Council tax band of your property
If you're working or receiving benefits like universal credit and pension credit

Whilst each council runs their own schemes, they must offer support for:

Pensioners
Disabled people
Those with dependant children
Low-income households

Myth Busting

Is garden waste collection included in my Council Tax bill in England?

Garden waste collection is not included within your Council Tax bill. This is a separately paid for optional service via your local council. Collections of grass cuttings, leaves and plants occur once fortnightly. You can sign up for this service via your local councils website.

Do I have to pay Council Tax and Service charges?

Service charges still apply if roads and green spaces have not been adopted by the local council. This stands for many new build developments. Review your contract to avoid any hidden costs.

Is water included within my Council Tax bill in Scotland?

If you own a home in Scotland and do not have a water meter, you will pay for your water via your council tax.

Check with your local council to see if you are eligible for any discounts. Councils have downloadable documents to explain where the money goes.

Article overview

Council Tax is a mandatory annual charge based on your property’s size, value, location, and occupancy. It funds local services like waste collection, policing, parks, public transport, and street cleaning. Properties are classified into bands A (lowest) to H (highest), which determine how much you pay. The tax assumes two adults per household, with anyone over 18 who owns or rents liable. Discounts apply for full-time students, under-18s, people living alone, or vacant homes. Council Tax may increase due to home improvements, extensions, or major local changes. Always check your property’s tax band before securing a mortgage to assess affordability.

Article overview composed with the help of AI

Disclaimer

newhomesforsale.co.uk is an information platform and not a financial advisor, mortgage broker or mortgage lender. Always get financial advice before making significant decisions about your money, mortgages and buying a house.