Council Tax Bands & Calculation: Understanding Your Bill 2025-26
Every property in England, Scotland, and Wales sits in a council tax band that determines your annual bill. Properties are valued based on 1991 prices in England (2003 in Wales), with bands ranging from A to H. Understanding your band is crucial, as a single band difference can mean hundreds of pounds annually. In 2025-26, the average Band D property in England pays £2,171, but moving just one band up to E increases this to £2,654—a £483 difference.
Overview of the Banding System
Council tax bands divide properties into eight categories (nine in Wales) based on 1991 market values in England or 2003 values in Wales. These historical valuations remain fixed unless significant property changes occur.
| Band | England (1991 Value) | Wales (2003 Value) | Example 2025-26 Bill (England Average) |
|---|---|---|---|
| A | Up to £40,000 | Up to £44,000 | £1,447 |
| B | £40,001 - £52,000 | £44,001 - £65,000 | £1,689 |
| C | £52,001 - £68,000 | £65,001 - £91,000 | £1,930 |
| D | £68,001 - £88,000 | £91,001 - £123,000 | £2,171 |
| E | £88,001 - £120,000 | £123,001 - £162,000 | £2,654 |
| F | £120,001 - £160,000 | £162,001 - £223,000 | £3,137 |
| G | £160,001 - £320,000 | £223,001 - £324,000 | £3,619 |
| H | Over £320,000 | £324,001 - £424,000 | £4,343 |
| I | N/A | Over £424,000 | N/A |
The Valuation Office Agency (VOA) assigns bands to all residential properties. Band D serves as the baseline for all calculations, with other bands set as proportions of this benchmark.
Valuation Process & Criteria
The VOA assesses properties using multiple factors to determine appropriate banding. Valuations reflect what the property would have sold for on the open market at the valuation date, not current market prices or purchase prices under discount schemes like Right to Buy.
Key valuation factors:
- Property size (measured as Reduced Covered Area for houses, Effective Floor Area for flats)
- Layout and number of rooms
- Character and condition
- Location and local amenities
- Any changes in use or significant alterations
Properties are automatically reassessed when newly built, significantly extended, or split into separate dwellings. The VOA doesn't use property price indexes—each assessment is individual.
Council Tax Calculation Formula
Your annual bill is calculated by your local council using Band D as the baseline. Each local authority sets its own Band D rate based on budget requirements, then applies fixed ratios to determine charges for other bands.
Band calculation ratios relative to Band D:
| Band | Ratio to Band D | If Band D = £2,000 | If Band D = £2,500 |
|---|---|---|---|
| A | 6/9 (67%) | £1,333 | £1,667 |
| B | 7/9 (78%) | £1,556 | £1,944 |
| C | 8/9 (89%) | £1,778 | £2,222 |
| D | 9/9 (100%) | £2,000 | £2,500 |
| E | 11/9 (122%) | £2,444 | £3,056 |
| F | 13/9 (144%) | £2,889 | £3,611 |
| G | 15/9 (167%) | £3,333 | £4,167 |
| H | 18/9 (200%) | £4,000 | £5,000 |
This explains why Band A properties pay exactly two-thirds of Band D charges, while Band H properties pay double.
Band D Benchmark Explained
Band D functions as the reference point for all council tax calculations. When councils set their annual budgets, they determine the Band D charge needed to raise required revenue. This single figure then determines all other bands through fixed ratios.
For example, if Westminster sets Band D at £800 while Birmingham sets it at £2,000, the relative charges for all other bands differ proportionally. Band A in Westminster (£533) is lower than Band A in Birmingham (£1,333), despite both using the 6/9 ratio.
For example, if Westminster sets Band D at £800 while Birmingham sets it at £2,000, the relative charges for all other bands differ proportionally. Band A in Westminster (£533) is lower than Band A in Birmingham (£1,333), despite both using the 6/9 ratio.
How to Check Your Band Online
Check your property's council tax band instantly using the official government service. You'll need your postcode and property address.
England and Wales: Visit the official website - search and enter your postcode. The service shows your current band, valuation date, and local authority.
Scotland: Use the Scottish Assessors Association website at https://www.saa.gov.uk for band information.
The online checker is free and provides immediate results. You can also see neighboring properties' bands to compare similar homes.
England and Wales: Visit the official website - search and enter your postcode. The service shows your current band, valuation date, and local authority.
Scotland: Use the Scottish Assessors Association website at https://www.saa.gov.uk for band information.
The online checker is free and provides immediate results. You can also see neighboring properties' bands to compare similar homes.
Local Authority Setting the Rate
Each of England's 333 local authorities independently sets its Band D rate annually, typically in February for the April-March tax year. Councils calculate required revenue for services (waste collection, social care, libraries, etc.), subtract government grants, then divide by the number of Band D equivalent properties to determine the rate.
Rates vary significantly by location. In 2025-26, Band D charges range from £869 in Westminster to £2,638 in Rutland—a £1,769 difference reflecting local service costs and property wealth distribution.
Rates vary significantly by location. In 2025-26, Band D charges range from £869 in Westminster to £2,638 in Rutland—a £1,769 difference reflecting local service costs and property wealth distribution.
Appealing Your Band
If you believe your band is incorrect, you can challenge it. Appeals are only accepted in specific circumstances: you've recently become the property owner, your property characteristics changed, or comparable properties are in different bands. For detailed appeal procedures and eligibility, see our comprehensive guide on challenging council tax decisions.
Frequently Asked Questions
How do I check my council tax band?
Check your council tax band online at https://www.tax.service.gov.uk/check-council-tax-band/search for England and Wales properties. Enter your postcode and address to see your current band, valuation date, and local authority. The service is free and provides instant results. Scottish properties can be checked at https://www.saa.gov.uk.
How is council tax calculated from my band?
Council tax is calculated using fixed ratios relative to Band D. Your local council sets the Band D charge, then applies ratios to determine other bands. Band A pays 6/9 (67%) of Band D, Band C pays 8/9 (89%), Band E pays 11/9 (122%), and Band H pays 18/9 (200%). For example, if Band D is £2,000, Band A pays £1,333 and Band H pays £4,000.
Are council tax bands based on current house prices?
No. Council tax bands in England are based on property values from 1 April 1991, not current prices. Wales uses 1 April 2003 values. Your band reflects what the property would have sold for on those dates, regardless of current market value. This is why a property worth £500,000 today might be in Band D if it was valued at £75,000 in 1991.
What is Band D in council tax?
Band D is the baseline benchmark for all council tax calculations. Each local authority sets its Band D rate annually, then all other bands are calculated as fixed proportions of this amount. Band D properties in England were valued at £68,001-£88,000 in 1991. The average Band D charge in England for 2025-26 is £2,171.
Can my council tax band change?
Your band can change in limited circumstances: when you buy the property and it has been significantly altered, when a property is split into separate dwellings, or when a self-contained annexe is added. Extensions and improvements don't change your band until the next sale. The Valuation Office Agency must approve all band changes.