Council Tax Increase 2026 — How Much Will Bills Rise?

trending_up The 2026/27 Council Tax Increase at a Glance

For the 2026/27 financial year (starting April 2026), councils in England can raise council tax by up to 5% without holding a referendum. This is broken down as:

• 3% core council tax increase — for general council services
• 2% adult social care precept — ring-fenced for social care services

In practice, the vast majority of councils are taking the full 5% increase, as rising costs and reduced central government funding leave them with little choice.

gavel What Is the Referendum Threshold?

The government sets a "referendum threshold" — the maximum percentage by which councils can increase council tax without having to hold a local vote. If a council wants to raise by more than this threshold, it must hold a referendum and get majority approval from local voters.

For 2026/27, the thresholds are:

In practice, no council has held a referendum on a council tax increase since the system was introduced. The thresholds act as an effective cap rather than a genuine trigger for democratic votes.

bar_chart How Much More Will You Pay by Band?

The 5% increase applies to your total bill, but the actual pound amount depends on your band. Higher bands see bigger increases in absolute terms:

Note: These figures are national averages. Your actual bill depends on your specific council's rates, which vary significantly across England.

map Which Councils Are Raising the Most?

While most councils are applying the full 5% increase, there are some notable variations:

Councils Applying the Maximum 5%

The majority of councils with social care responsibilities are taking the full 5% increase. This includes most county councils, unitary authorities, and London boroughs. The financial pressure from adult social care costs — which account for over 40% of many councils' budgets — makes the full increase almost unavoidable.

Councils with Exceptional Increases

Some councils in acute financial difficulty have received special government permission to raise council tax above the referendum threshold. These councils have typically issued "Section 114 notices" — the local government equivalent of declaring bankruptcy — and are raising rates by 10% or more as part of their recovery plans.

Councils with Lower Increases

A handful of councils have chosen to increase by less than 5%, though this is increasingly rare. Some district councils with smaller budgets have applied increases below 3%.

history Council Tax Increases Over Time

The 2026/27 increase continues a long trend of rising council tax. Here's how average Band D bills have changed over the past decade:

Since 2016, the average Band D bill has increased by over £500. Over the same period, average wages have not kept pace, meaning council tax takes a larger share of household income than ever before.

help Why Does Council Tax Keep Going Up?

Council tax rises are driven by several factors that show no sign of easing:

• Adult social care crisis — an ageing population means surging demand for social care services. This is the single biggest cost pressure, consuming over 40% of many councils' budgets
• Reduced central government funding — government grants to councils have been cut significantly since 2010, forcing councils to raise more money locally
• Inflation — staff wages, energy costs, and the price of delivering services have all risen sharply
• Children's services — rising demand for children's social care and special educational needs provision
• Temporary accommodation — homelessness costs have increased significantly, particularly in London and the South East
• No council tax revaluation — because bands are still based on 1991 values, the system cannot adapt to reflect changes in relative property values

savings 5 Ways to Reduce Your Council Tax Bill in 2026/27

While you can't change your council's rate, there are several ways to reduce what you personally pay:

1. Check If Your Band Is Correct

This is potentially the biggest saving. If your property is in the wrong band, getting it corrected means lower future bills AND a backdated refund. Use our free checker tool to compare your band with neighbours — it takes 60 seconds and could save you thousands.

2. Claim the Single Person Discount

If you're the sole adult living in your home, you're entitled to a 25% discount on your council tax bill. This saves the average Band D payer over £500 per year. Around 8 million people claim this discount — but many more are eligible and don't know it.

3. Apply for Council Tax Reduction

If you're on a low income or claiming benefits, you may qualify for Council Tax Reduction (formerly Council Tax Benefit). This can reduce your bill by up to 100%. Each council runs its own scheme, so contact your local council to check eligibility.

4. Check for Disability Reductions

If someone in your household has a disability and needs an extra room, a wheelchair-accessible bathroom, or extra space, you may be eligible for a disability reduction. This charges you at the rate of the band below — so a Band D property would pay the Band C rate.

5. Spread the Payments

While this doesn't reduce the total amount, you can request to pay over 12 months instead of the standard 10 months, making each payment more manageable. Contact your council to arrange this — it's your legal right.

For a complete overview of every available discount and exemption, see our council tax discounts guide.

update Will There Be a Council Tax Revaluation?

Despite growing calls for reform, there are currently no firm plans for a council tax revaluation in England. The bands remain based on April 1991 property values — over 35 years ago. Wales conducted a revaluation in 2003 (and is planning another), but England has resisted the political risk.

The government has acknowledged the system is outdated but has not committed to a timeline for reform. Any revaluation would create winners and losers — some properties would move up bands while others moved down — making it politically sensitive. For the history behind this, read our council tax band history guide.

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