Do you pay council tax when renting?

If you’re renting, you’ll usually need to pay council tax. Sometimes, it’ll be the landlord’s responsibility, but this is not common. Let’s take a closer look at what council tax is, who has to pay and how it works.

Key takeaways

  • Council tax is a local tax that helps pay for local services. It can vary a lot depending on where you live and the estimated value of your home.
  • In most cases, if you’re renting under a typical tenancy agreement, you and any other qualifying people in your household – such as a spouse – will be legally responsible for paying council tax.
  • If you’re renting and need to pay council tax, you should let your local authority know. They’ll sort out your bill and payment plan and can help with possible discounts and reductions.

This guide covers council tax in England, Scotland and Wales. Rules, discounts and support can vary, so check with your local council.

In this guide

What is council tax?

Who pays council tax – the tenant or the landlord?

How much is council tax?

How to pay council tax when renting

When might your landlord pay council tax?

What if I can’t pay my council tax?

More frequently asked questions

What is council tax?

 

Council tax is a property-related tax paid by most households in England, Wales and Scotland.

It’s collected by local authorities, who use the money to help pay for important local services like social care, street cleaning, rubbish collection and libraries.

A full council tax bill is based on there being at least 2 adults living in a home. It’s applied per household, not per individual, so people living together – like spouses and partners – are normally jointly responsible for paying the bill.

The amount to pay depends on the local authority as well as the estimated value of the property.

Depending on your circumstances, you may be able to apply for a discount or full exemption. For example, if you live alone or are a full-time student.

Check the official government guidance for full details of how council tax works.

Who pays council tax – the tenant or the landlord?

Most of the time, it’s the tenant’s responsibility to pay council tax when renting. In certain circumstances, it’ll be up to the landlord, but usually the council tax bill will be in the renter’s name.

Each council tax bill relates to an individual house or flat, so:

  • if you’re renting the whole property by yourself, you’re responsible for paying the council tax
  • if you’re renting the whole property with a spouse, partner or others under a single tenancy agreement, you’re jointly responsible for paying the council tax
  • if the property is classed as an HMO for council tax purposes, the owner will usually be responsible.

The landlord may also be responsible for paying council tax in certain situations, including where they live in the property, or where all the occupiers are under 18, asylum seekers or only staying temporarily.

Arrangements for paying council tax when renting, along with other household bills like electricity, will often be specified in your tenancy agreement. If it’s not, it’s worth clarifying with your landlord to make sure there’s no confusion.

How much is council tax?

Each local authority sets its own rates of council tax, so how much you might need to pay will partly depend on the area you live in. It will also depend on which ‘valuation band’ the property is in, with more valuable properties generally paying more in tax.

Every local authority publishes its latest council tax rates on its website. You can find your local council and check your home’s council tax band at GOV.UK. 

How to lower your council tax

If you’re renting and worried about being able to pay council tax, there are ways you might be able to reduce your bill. For example:

  • if you live by yourself, you may qualify for a 25% single person discount
  • if no one in your household is counted for council tax purposes you could get a 50% discount
  • if everyone in your house is a full-time student you can apply for a full exemption
  • if you or someone you live with is disabled, you might qualify for a discount or exemption
  • if you’re on low income or claim benefits, you might qualify for council tax reduction.

You can check if you qualify for a council tax reduction. If you need help managing your money, take a look at our budgeting tips and tools.

How to pay council tax when renting

If you’re renting and responsible for paying council tax, you’ll normally be billed directly by the council. Your landlord may pay the council tax on your behalf – and then include the cost in your rent – but you’d remain legally responsible for the bill being paid.

Here’s how to go about paying council tax when you rent a new place:

  1. Contact the local authority – find your local council and let them know about your tenancy as soon as possible, giving them the names of everyone living at the property.
  2. Decide how you want to pay – the council will register your details and explain your options, which could include paying by direct debit, online transfer or telephone.
  3. Wait for your bill and make a payment – your bill will include your council tax number and details of what you need to pay and when.

Council tax is an annual charge but it’s usually split into 10 monthly payments, starting in April. If you move in part-way through the year, you’ll only need to pay for the remaining months. And you can ask to spread the cost out over 12 months if you prefer. 

When might your landlord pay council tax?

While in most cases it’s the tenant’s responsibility to pay the council tax when renting, there are certain situations when the landlord will pay.

If it’s a house in multiple occupation (HMO)

Where multiple unrelated tenants pay rent separately, under their own tenancy agreements – like when you’re renting a single room in a student house or a flat share.    

If all the occupants are under 18

Under-18s aren’t expected to pay council tax. But the property will still be billed, so the landlord may add the cost onto the rent instead.

If certain other special circumstances are met

The landlord is also responsible for paying council tax if the tenants are all asylum seekers or people who are staying only temporarily, away from their main homes.

What if I can’t pay my council tax?

If you’re struggling to pay the council tax on top of your bills and rent, get in touch with your local authority as soon as you can. They can discuss your situation and talk you through your options, including potentially applying for:

  • council tax discounts or exemptions – for example if you live alone, you’re a student, or if everyone else living with you is under 18
  • council tax reduction – meant for people who are struggling on a low income and claiming certain benefits.

If you don’t speak to the council and you fall behind with your payments, they can take action to recover any money you owe.

For more general information and advice on how to deal with the cost of living, debt and other money matters, take a take a look at our money worries page for more support.

What if I’ve been charged incorrectly?

As a renter, it’s possible for you to receive a council tax bill meant for someone else. Or to be charged for periods when you weren’t renting the property.

If this happens to you, get in touch with the council straight away. They can check their records and tell you whether your bill needs to be corrected or any overpayment refunded.

If you think that the property has been put into the wrong valuation band, you may be able to challenge this with the relevant authority.

Will your next home be your own?

Not sure about renting? If you’d love a place of your own but don’t know where to start, we can help you get your foot on the ladder.

Guides to buying a home

Let’s look at the details

  • If everyone living in the house is a full-time student, or if someone you’re living with is disabled, you may be exempt. Certain properties might also be exempt – for example, properties that are unoccupied because the person who lived there moved into a care home or hospital.

    There are other groups of people who are 'disregarded' for council tax purposes. These include anyone under 18 years old, student nurses and people on certain apprenticeship schemes. Being disregarded doesn’t necessarily mean exempt, but it might mean you qualify for a discount.

  • If you only rent a room in an HMO (house in multiple occupation) or if you and your housemates all have your own individual tenancy agreements, then you aren’t usually responsible for paying council tax on the property. In these cases, it’s usually up to the landlord, but it’s worth checking your agreement.

  • This depends on what you agree with your landlord and is normally written into your tenancy agreement. Your landlord may take care of the bills for things like electricity, gas and water and include the cost in your rent. Or you may be responsible for dealing with the suppliers yourself.

  • Yes, if you’re over 18 and renting under a standard tenancy agreement in Scotland you will usually pay council tax. Valuation bands are worked out differently in Scotland, England and Wales.

  • No, if you’re responsible for paying council tax then that’s legally enforceable. If you think that you shouldn’t have received a bill, that you qualify for an exemption or that your bill is incorrect, you should tell the local authority as soon as you can.

  • Not directly. Council tax payment history is not normally reported to credit reference agencies. But, missed payments can lead to recovery action, extra costs and serious financial consequences.

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