Housing tax calculator – How much you will pay and how to check your housing tax bracket

The housing tax is an important source of revenue for local communities, as it helps cover the cost of local public services as well as emergency services.

But how housing tax works can be opaque to many people – all they know is that they are supposed to pay it.

To understand how much council tax you have to pay, it is important to know what the council tax brackets mean. But what are they – and how are they calculated?

READ MORE: What is stamp duty – and how do you calculate how much you’ll need to pay?

How do municipal tax brackets work – and how are they calculated?

The amount of housing tax you pay will be determined by the housing tax bracket in which your property is located. The more your property is worth, the more housing tax you will pay.

The municipal tax brackets are calculated differently in England, Wales and Scotland. In England they are based on the value of your house on April 1, 1991 or April 1, 2003 in Wales.

Scottish municipal tax brackets are also calculated based on the notional value of a property in April 1991. Northern Ireland, however, has national rates instead of municipal tax.

In which housing tax bracket is my house located?

If you live in England or Wales, you can check which tax bracket your property falls into on the Gov.uk website.

In England there are eight municipal tax brackets from A to H, A being the lowest level of municipal tax and H the highest. The thresholds for the housing tax brackets are as follows:

  • A: Up to £ 40,000

  • B: £ 40,000 – £ 52,000

  • C: £ 52,000 – £ 68,000

  • D: £ 68,000 – £ 88,000

  • E: £ 88,000 – £ 120,000

  • F: £ 120,000 – £ 160,000

  • G: £ 160,000 – £ 320,000

  • M: £ 320,000 +

In Wales there are nine municipal tax brackets, from A to I. The thresholds work as follows:

  • A: Up to £ 44,000

  • B: £ 44,000 – £ 65,000

  • C: £ 65,000 – £ 91,000

  • D: £ 91,000 – £ 123,000

  • E: £ 123,000 – £ 162,000

  • F: £ 162,000 – £ 223,000

  • G: £ 223,000 – £ 324,000

  • M: £ 324,000 – £ 424,000

  • I: £ 424,000 +

In Scotland, the municipal tax brackets run from A to H, as in England – but the thresholds for each bracket are different:

  • A: Up to £ 27,000

  • B: £ 27,000 – £ 35,000

  • C: £ 35,000 – £ 45,000

  • D: £ 45,000 – £ 58,000

  • E: £ 58,000 – £ 80,000

  • F: £ 80,000 – £ 106,000

  • G: £ 106,000 – £ 212,000

  • M: £ 212,000 +

How much housing tax will I pay?

The tool below shows the amount of municipal tax bills for each band in your local authority area. Enter your postal code to search for rates in your area.

Can I dispute my housing tax bracket?

If you believe your property has been improperly assessed and you have been placed in the wrong housing tax bracket, you can challenge it.

Additionally, if any changes have been made to your property since its original appraisal – for example, if it has been turned into apartments or part of it has been demolished – this is also a valid reason to dispute. your housing tax bracket.

You can dispute your council tax bracket by contacting the agency of the valuation office or by using the online service at Gov.uk.

What is the housing tax used for?

Housing tax pays for local services provided by your municipality. These include waste disposal and recycling, record keeping and administration, libraries and education, as well as sports and recreation facilities, among others.

Part of your council tax also goes to the police and fire department.

Can I benefit from a reduction in housing tax?

People in the following circumstances may be entitled to a reduction on their council tax.

  • Single Person Discount – If you live alone or are the only adult living in your home, you will be eligible for a 25% discount. This is because municipal tax bills are calculated based on the assumption that there are two or more adults living together.
  • Caregivers – People who work 35 or more hours per week as caregivers can also benefit from a 25% reduction on their housing tax.
  • Full-time students, student nurses, those under 18 and certain apprentices and trainees are exempt from housing tax.

If your home has fallen sharply in value, your city council may agree to move you to a lower housing tax bracket, which would reduce the amount you pay.

Where are the most expensive municipal tax bills in the UK?

Poorer areas of the country often have higher municipal tax bills, in part because people in richer areas tend to be less personally dependent on local services.

According to research by Rentround.com in August 2021, the most expensive municipal tax bills were found in Blaenau Gwent in South Wales. There, the average municipal tax bill was £ 2,078 per year.

The wealthy London borough of Kingston-upon-Thames – where property is very expensive – was second at £ 2,057, while the much poorer borough of Merthyr Tydfil was third, with municipal tax bills averaging around £ 2,018.

In contrast, the cheapest municipal tax bills were found in Westminster (£ 858), Wandsworth (£ 845) and Windsor & Maidenhead (£ 1,149).

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Esther L. Steinbach

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