Every home in England is placed in one of eight council tax bands, A to H, according to what it would have sold for on 1 April 1991. Each council sets a single Band D charge for the year and the other bands pay fixed fractions of it: Band A pays two thirds, Band H pays double. On an illustrative Band D charge of £2,280, a Band A home pays £1,520 and a Band H home £4,560. Around a quarter of homes are in Band A and only a few thousand in Band H. The band, the council’s Band D figure and any discount are the three things that decide the bill.
The bands and what they pay
| Band | Home value on 1 April 1991, England | Fraction of Band D | Annual bill where Band D is £2,280 |
|---|---|---|---|
| A | Up to £40,000 | 6/9 | £1,520 |
| B | £40,001 to £52,000 | 7/9 | £1,773 |
| C | £52,001 to £68,000 | 8/9 | £2,027 |
| D | £68,001 to £88,000 | 9/9 | £2,280 |
| E | £88,001 to £120,000 | 11/9 | £2,787 |
| F | £120,001 to £160,000 | 13/9 | £3,293 |
| G | £160,001 to £320,000 | 15/9 | £3,800 |
| H | Over £320,000 | 18/9 | £4,560 |
The ratios are fixed in law, so the only local variable is the Band D charge, which is the sum of the amounts set by the county or unitary council, the police and fire authorities and, where there is one, the parish or the Greater London Authority. Band D charges in England for 2026/27 range from around £1,000 in a few London boroughs to over £2,700 in some rural counties, so the same Band D home can pay nearly three times as much in one area as another. The council tax calculator works the bill for any band and Band D charge, and councils publish their Band D figure each March.
Why 1991 values
Bands in England and Scotland were set from 1991 valuations and have never been revalued, so a home’s band reflects its worth relative to its neighbours 35 years ago, not its price today. A flat bought for £400,000 in a former industrial area may sit in Band B, while a similar-priced house in a town that was expensive in 1991 sits in Band E. Wales revalued in 2003 and uses nine bands, A to I, with a further revaluation planned; Scotland keeps the 1991 bands but changed the ratios for E to H in 2017 so that they pay more. New-build homes are banded by the Valuation Office Agency at what they would have been worth in 1991.
Discounts and exemptions
| Situation | Effect on the bill |
|---|---|
| Only one adult in the home | 25% discount |
| Everyone in the home is a full-time student | Exempt |
| Someone is severely mentally impaired, or a live-in carer | Disregarded for the count of adults, which can bring a 25% or 50% discount |
| A disabled person needs an extra room or space for a wheelchair | Charged at the band below, or a reduction of one ninth for Band A |
| Empty and unfurnished | Council’s choice up to 100% for a short period; premium of 100% after one year, 200% after five, 300% after ten |
| Second home | Premium of up to 100% at the council’s discretion since April 2025 |
| Low income | Council Tax Reduction under the local scheme, up to 100% for households on Universal Credit or Pension Credit |
Discounts are claimed from the council, not applied automatically. The single person discount is the most commonly missed, particularly after a partner dies or moves out, and it can be backdated. Council Tax Reduction is means tested and varies by council, with pensioners protected under a national scheme; the Council Tax Reduction checker estimates the likely help, and our Pension Credit guide explains how Guarantee Credit passports to a full reduction.
Challenging a band
A band can be challenged through the Valuation Office Agency where comparable homes in the same street are in a lower band or the home has been altered, for example by demolition of part of it or a change to a flat. The evidence is the band of similar neighbouring properties, available on the VOA’s public list, and the 1991 value implied by the home’s price at a later date adjusted with a house price index. A successful challenge is backdated to when the band was set or the occupier moved in, which can produce a refund of several years’ overpayments; an unsuccessful one can in principle move the band up, so check the neighbours first. Challenges are free and do not require a paid agent.
Paying
Council tax is billed for the year from 1 April and paid in ten monthly instalments by default, or twelve on request, which lowers the monthly figure without changing the total. Councils can insist on the full year’s balance after two missed instalments and a reminder, and enforcement through a liability order adds costs, so anyone struggling should ask for a twelve-month schedule or an arrangement before missing payments. Moving home part way through the year is charged daily, and the moving cost calculator includes the change in council tax among the costs of a move.
Common questions
How are council tax bands worked out? From the home’s estimated value on 1 April 1991 in England and Scotland, or 2003 in Wales, placed into bands set by law. Bands do not change when the home is sold or its price rises.
How much more does Band E pay than Band D? Two ninths more: 11/9 of the Band D charge against 9/9, so £2,787 against £2,280 where Band D is £2,280.
What is the single person discount? 25% off the bill where only one adult lives in the home, claimed from the council and backdatable.
Can I get my council tax band lowered? Yes, by challenging it with the Valuation Office Agency using evidence of neighbouring bands or the 1991 value. Successful challenges are backdated, but a challenge can also raise the band.
Do students pay council tax? No. A home occupied only by full-time students is exempt, and a student living with one non-student brings a 25% discount.
Why is my council tax higher than a friend’s in a similar house? Because the Band D charge is set locally and varies by more than £1,500 a year between councils, and because bands reflect 1991 values, not current prices.
Information, not financial advice. Band ranges and ratios are those set out in the Local Government Finance Act 1992 and published on gov.uk: council tax bands; the £2,280 Band D figure is illustrative and your council’s own charge applies. Check your bill and the Valuation Office Agency list before acting on them.