Council tax band

A council tax band is the valuation category assigned to a residential property by the Valuation Office Agency (VOA), which determines how much council tax is payable on that dwelling. In England and Scotland, bands run from A to H. In Wales, from A to I. Bands are based on the estimated open market value of the property at a fixed historic date, 1 April 1991 in England and Scotland, and 1 April 2003 in Wales, not on current market value. A property built today is still assessed against what it would have been worth at that reference date.

How bands and rates are calculated

Each band corresponds to a range of 1991 property values. In England, Band A covers properties valued up to £40,000 in 1991; Band H covers those valued above £320,000. Band D is the reference point from which all other rates are calculated. Every council sets a Band D rate for its area each year, and all other bands are expressed as a fraction or multiple of that figure. Band A pays six-ninths of the Band D rate; Band H pays eighteen-ninths, exactly double Band D. As a result, a Band H property pays three times as much council tax as a Band A property in the same council area.

Who pays council tax in a rented property

In a standard let of a whole property on a single tenancy agreement, the resident tenant is liable for council tax. The landlord becomes liable during void periods, when the property is empty between tenancies, and must factor that cost into cashflow planning.

In an HMO where tenants hold individual licences or tenancies for their rooms rather than the property as a whole, the landlord is the liable party. The Council Tax (Chargeable Dwellings and Liability for Owners) (Amendment) (England) Regulations 2023, which came into force on 1 December 2023, clarified that all HMOs within the definition of Section 254 of the Housing Act 2004 must be banded as a single property and that the owner, not the tenants, is responsible for the council tax bill. HMO landlords should confirm with their local VOA office that their property has been correctly aggregated to a single band following this change, particularly if it was previously disaggregated into individual room bands.

From working with HMO landlords across the UK, we know that many were still receiving room-by-room council tax bills from their local council well into 2024. If that is the case for your property, contact the VOA directly to request aggregation. You are not reliant on the council to initiate this.

Discounts, exemptions, and empty properties

Several situations reduce or eliminate council tax liability. A single adult living alone receives a 25% discount. Properties occupied solely by full-time students are fully exempt. A property that is genuinely uninhabitable, for example, undergoing major renovation, may be exempt while works are ongoing, though councils apply this discretionarily.

For landlords, the most directly relevant exemption is the empty property position. In England, councils have discretion to charge a premium on properties that have been empty for over twelve months, up to 100% of the standard rate in addition to the full charge, meaning a landlord could pay double council tax on a long-term void. Some councils charge even higher premiums after two years.

Landlords cannot charge tenants for council tax outside the terms of the tenancy agreement, nor pass on any mark-up or administration fee. Council tax is not a permitted payment under the Tenant Fees Act 2019; it may only be included within an all-inclusive rent that is clearly set out in writing.

Checking and challenging a council tax band

Any landlord or resident can check the band for a property in England and Wales using the VOA's online search tool. In Scotland, the equivalent tool is run by the Scottish Assessors Association.

Bands can be challenged in limited circumstances, typically where there is evidence that similar properties on the same street are in a lower band, or where the property has changed materially since it was last assessed. Challenging a band is free; the VOA provides the service at no charge. A word of caution, a successful challenge may prompt the VOA to review neighbouring properties, and an unsuccessful challenge could occasionally result in the band being increased rather than reduced.

August's property insights feature displays the current council tax band for every property in a landlord's portfolio, alongside EPC ratings and estimated valuations, without needing to check the VOA tool separately.

For a full picture of what HMO landlords must manage, see our guide to HMO rules and licensing.

Frequently asked questions

What are the council tax bands in England and how much do they cost?

England has eight bands, A to H, based on estimated property values as of 1 April 1991. Band D is the reference point; all other bands are calculated as fractions or multiples of the Band D rate set by each local council. Band A properties pay two thirds of the Band D amount; Band H properties pay double. Because councils set their own Band D rates, the actual amount varies by area, Band D council tax in 2026/27 ranges from around £1,400 to over £2,400 per year depending on the local authority.

Who pays council tax in an HMO?

Since 1 December 2023, in England, the owner of an HMO that meets the Section 254 Housing Act 2004 definition is liable for council tax, not the individual tenants. The property must be banded as a single unit by the VOA. HMO landlords typically factor the council tax cost into the inclusive rent charged per room. Wales has not adopted the same change; individual room liability may still apply there depending on how the property is structured.

Can a landlord pass council tax costs to the tenant?

In a standard let, the tenant pays council tax directly to the local council and the landlord has no involvement. In an HMO where the landlord is liable, the council tax cost is typically recovered through the rent level, it cannot be charged as a separate fee or administration charge. Council tax is not a permitted payment under the Tenant Fees Act 2019.

How do I check if a property's council tax band is correct?

Search for the property on the VOA's Check your council tax band tool, then compare it against similar properties on the same street. If neighbouring properties of the same type, size, and age are in a lower band, that is grounds for a challenge. Challenging is free and can be done directly through the VOA.