How much is council tax and what does it pay for?
PA MediaThe majority of local councils are expected to put council tax up by just under 5% at the beginning of April.
The Local Government Association has said council budgets were under "severe financial pressure" and warned of further cuts to services even if bills rise.
Local elections will be held on 7 May for about 5,000 seats in 136 English councils and six mayoral posts.
What is council tax for and who pays it?
Council tax is a compulsory charge on properties in England, Scotland and Wales.
It is set by local authorities to raise money for services including:
- rubbish collection
- street lighting
- libraries
- youth clubs
- parks and recreation facilities
- care services
Council tax bills also include additional charges.
These are used to fund care homes and adult social care services. Another charge funds local police and fire services.
Some cities with mayors, such as London and Manchester, can add charges for other services.
Getty ImagesTypically, anyone who is over 18 and owns or rents a home has to pay council tax.
However, someone living alone is entitled to a 25% reduction, and properties occupied only by students are exempt.
Some discounts are available if you - or someone you live with - has a disability.
Northern Ireland uses a domestic rates system instead of council tax.
What is expected to happen to council tax in England in April 2026?
GettyCouncils in England with responsibility for social care can increase bills every year by 4.99% without having to hold a referendum or getting government approval.
Smaller councils without social care duties can increase bills by up to 2.99%.
Most councils are expected to put bills up by the maximum amount.
The government has told seven local authorities they can put bills up by more than 5% due to their "challenging financial position".
North Somerset, Shropshire and Worcestershire County Council are likely to increase bills by 9%. Authorities in Maidenhead, Trafford, Warrington and Windsor can put council tax by up to 7.5%. Bournemouth, Christchurch and Poole Council can raise bills by up to 6.75%.
In April 2025, 77% of councils (294) put council tax up by the maximum amount, and another 15% (56) were close to the limit. Six areas were allowed to introduce bigger rises.
The average Band D council tax bill in England for 2025-26 was£2,280.
How do council tax bands work, and how can I check I'm in the correct band?
The amount of council tax you pay depends on your property's council tax band - from A to H.
Broadly speaking, the more expensive the property, the higher the band.
In England and Scotland, bands are based on the price the property would have sold for in 1991. Wales uses 2003 prices and Northern Ireland 2005 prices.
Many experts including the IFS think tank argue that a revaluation of council tax bands is "long overdue".
You can check the currentcouncil tax band for your home by clicking on the links below:
Moneysaving expert Martin Lewis says tens of thousands of homes could be in the wrong band.
PA MediaYou cannot ask for your council tax band to be lowered but in some circumstances you can ask for your property to be revalued, which may lead to a reclassification.
To do this, Lewissays you should compare your council tax band with that of neighbouring properties which are similar to yours in size and value. You then need to find out - or estimate - what your property would have been worth in 1991.
If you have evidence that suggests that your property has been wrongly assessed you can challenge your listing.
However, Lewispoints out that your property might be in a higher band because your neighbours' bands are too low. This could mean they are moved up a band instead of you being moved down.
Where else do councils get their money?
Getty ImagesLocal authorities in England get almost half of their funding from council tax.
About a third came from central government grants and just over a fifth from business rates.
In February 2026, ministers said the local government finance settlement for 2026-27 to 2028-29 was worth around £78bn to councils across England.
They also announced an extra £440m of recovery grants for councils in economically deprived areas - and £272m to tackle homelessness.
The government said it would spend £5bn writing off 90% of councils' historic debts relating to support for children with special educational needs and disabilities (SEND), accumulated up to April 2026.
Councils can also raise money by charging for services including parking, swimming pools and planning applications. They can borrow money to fund improvements in their areas - including new schools, maintaining roads and providing sheltered housing - or to make investments intended to generate income.
Since 2010, they have bought shopping centres, office parks and solar farms and have funded large housing developments.
BBC research found councils' combined debts grew by 7% in 2024 to stand at £122bn, or equivalent to £1,700 per UK resident.
Some councils in financial trouble have been given permission to sell assets.
What happens when a council goes 'bankrupt'?
Getty ImagesCouncils cannot technically go bankrupt, but if they cannot balance their budget for the financial year, they can issue what is called a section 114 notice.
This means they cannot commit to most new spending, and residents may see reduced services, such as fewer bin collections or cuts to libraries.
Authorities to have issued section 114 notices include Birmingham City Council, Hackney, Hillingdon, Thurrock and Woking. Croydon has issued three notices, while Northamptonshire and Nottingham have issued two.
Some of these councils - plus a number of others which have not issued section 114 notices - have also received so-called "exceptional financial support" from the government to help manage their budgets.
In 2025-26, 30 councils were granted exceptional financial support, including Birmingham, Bradford, Croydon, Havering, Somerset, Southampton and Woking.
What is the mansion tax and what will it cost? - NEW
Owners of properties in England worth more than £2m will have to pay an additional surcharge from April 2028.
The annual charge - nicknamed the mansion tax - will be due on top of council tax, with four separate bands:
- properties valued between £2m and £2.5m: £2,500
- properties valued between £2.5m and £3.5m: £3,500
- properties valued between £3.5m and £5m: £5,000
- properties valued at more than £5m: £7,500
The majority of the properties affected are in London and the South East.
The price thresholds for each band will increase in line with inflation, and the money raised will go to the Treasury rather than the local authority.
The Office for Budget Responsibility (OBR) - which monitors government spending - expects the tax to raise about £400m a year by 2029-2030.
What is happening to council tax in Scotland and Wales?
Council tax rates in Scotland rose by an average of 9.6% in April 2025, with increases of at least 10% in 13 areas.
The average Band D council tax bill in Scotland for 2025-26 was£1,543.
The Scottish government said itwould give councils an extra £1bn in 2025-26 to help limit increases.
In January 2026, the Scottish government said that a mansion tax - similar to that planned for England - will be introduced by April 2028 for properties worth more than £1m.
A revaluation of the most expensive homes will mean two extra higher council tax bands - one for properties valued between £1m and £2m, and one for homes valued above £2m.
Council tax rates in Wales increased by an average of 7.2% in April 2025.
It meant the average Band D council tax bill in Wales for 2025-26 was £2,170.
Wales' 22 local authorities had been given £253min December 2024 help reduce increases, but council leaders said more was needed.