How council tax is calculated
Your council sets a yearly charge for a Band D home. Police, fire, county and parish bodies add their shares, your band pays a fixed fraction of the total, and any discounts come off last.
Checked against official sources on 27 October 2026. Independent guide; your council decides your bill.
1. The Band D charge
Each year the council works out how much it needs to raise from council tax, after other funding. It divides that by its tax base, the number of homes in the area counted in Band D equivalents after discounts and exemptions, to get the Band D charge.
2. The other bodies' shares
Your council collects the whole bill but passes on shares set by other bodies. In England these can be a county council (if your council is a district), the police and crime commissioner, the fire authority, the Greater London Authority in London, a combined authority, and a parish or town council. In Wales the police and community councils add shares. In Scotland the council keeps it all; police and fire are funded nationally, and Scottish Water's charges are added separately.
For example, in Cotswold a Band D bill of £2,391.65 in 2026/27 is made up of Cotswold council £163.93, Gloucestershire County Council £1,763.46, Gloucestershire Police and Crime Commissioner £340.58, Parish or town council (average) £123.68.
3. Your band's fraction
Every band pays a fixed fraction of Band D set in law. In England and Wales Band A pays 6/9 and Band H 18/9 (Wales's Band I pays 21/9). In Scotland the fractions for bands E to H are larger. How bands work.
4. Discounts, premiums and reductions
Finally the council applies anything that changes your bill: 25% off for living alone, exemptions, the disabled band reduction, a premium on a second or empty home, and Council Tax Reduction if your income is low. All discounts.
How much it can rise
In England councils must hold a local referendum to raise council tax by more than set limits. For 2026/27 the limits were 4.99% for councils responsible for social care (3% core plus 2% adult social care precept), 3% or £5 for district councils, £15 at Band D for police and £5 for fire. Bournemouth, Christchurch and Poole could go to 6.75%; Trafford, Warrington and Windsor and Maidenhead to 7.5%; and North Somerset, Shropshire and Worcestershire County Council to 9%. Parish councils have no limit.
The government has said it doesn't intend to set limits in 2027/28 and 2028/29 for Westminster, Wandsworth, Kensington and Chelsea, Hammersmith and Fulham, Windsor and Maidenhead and the City of London, which have some of the lowest bills. Wales and Scotland have no referendum limits; councils there set their own rates.
Average Band D in 2026/27: £2,391.52 in England, £2,283.08 in Wales and £1,653.44 in Scotland (before water and sewerage).
Questions
How is council tax calculated?
Each council works out how much it needs to raise and divides it by the number of Band D-equivalent homes in its area to get the Band D charge. Police, fire, county, mayoral and parish bodies add their own Band D amounts. Your band then pays a fixed fraction of the total, and discounts come off at the end.
How much can council tax go up each year?
In England, councils with social care duties can raise it by up to 4.99% a year (3% plus 2% for adult social care) without a local referendum, and shire districts by 3% or £5, whichever is more. A few councils were allowed more for 2026/27. Wales and Scotland have no referendum limits.
Why is council tax different in each council?
Each council has different costs, a different number of homes in each band and a different mix of other funding, and the police, fire and parish shares differ by area. Homes are also valued on different dates in Wales than in England and Scotland.