Average council tax in England rose 4.9 percent for 2026 to 2027, taking a typical Band D bill to £2,392. A separate High Value Council Tax Surcharge on homes worth over £2 million is under consultation, with charges expected to start in April 2028.
TL;DR · LAST REVIEWED 14 July 2026
- Average Band D council tax in England for 2026-27 is £2,392, up 4.9% (£111) on the year before.
- Total council tax raised across England for 2026-27 is £46.8 billion, up £2.7 billion year on year.
- Seven councils were given government permission to raise bills above the usual 4.99% referendum threshold.
- A new High Value Council Tax Surcharge ("mansion tax") on homes worth over £2 million is under consultation, expected to apply from April 2028.
- HVCTS is estimated to cost affected homeowners between £2,500 and £7,500 a year, on top of standard council tax.
- Councils can let households struggling to pay spread bills over 12 months instead of the usual 10.
KEY FACTS
- Average Band D bill, England 2026-27: £2,392 (+4.9%)
- Total council tax requirement, England: £46.8 billion
- Standard referendum threshold: 4.99% (7 councils exceeded it with permission)
- HVCTS threshold: homes valued over £2 million
- HVCTS estimated cost: £2,500 to £7,500 a year
- HVCTS expected start: April 2028
How much council tax has risen
Council tax bills rose again for the 2026 to 2027 financial year, with the average Band D bill in England reaching £2,392, an increase of 4.9 percent, or £111, on the year before. That is the smallest percentage rise in three years, following increases of 5.0 percent and 5.1 percent in the two years before that. Across England, the total amount councils are raising through council tax, including adult social care and parish precepts, now stands at £46.8 billion, up £2.7 billion on the previous year. Most councils are able to raise bills by up to 4.99 percent without needing to hold a local referendum, but seven authorities, including North Somerset, Shropshire, and Worcestershire, were given government permission to raise bills by more than that this year, with increases of up to 8.99 percent in some areas.
How your band and bill are worked out
How much any individual household pays depends on two things: the valuation band the property sits in, and the circumstances of the people living there. In England and Scotland, bands are based on a property's estimated value on 1 April 1991, not its current market value, which is why two similarly priced homes today can sit in very different bands if one has been altered or extended since. Wales uses a later valuation date of 1 April 2003. Discounts apply for single-occupant households, some full-time students, and certain people with disabilities, while second homes and long-term empty properties can attract a premium rather than a discount in many areas. Anyone who believes their property has been placed in the wrong band can challenge it through the Valuation Office Agency, though the outcome could see a band stay the same, move down, or move up, so it is worth checking the evidence carefully before applying.
The new High Value Council Tax Surcharge
Alongside the annual council tax rise, the government has been consulting on a new High Value Council Tax Surcharge, informally dubbed a "mansion tax," which will apply to residential properties in England valued at more than £2 million. Announced at the Autumn Budget on 26 November 2025, the surcharge is expected to come into force from April 2028 and will be paid by the homeowner rather than the occupier, collected alongside the existing council tax bill. Estimated costs range from £2,500 to £7,500 a year depending on the property's value, and the government says the surcharge is expected to affect fewer than 1 percent of homes in England. The consultation has also explored whether to add a further premium for non-UK resident owners of high-value homes, reflecting concerns that overseas buyers may be adding pressure to housing costs in areas such as London. Owners will be able to challenge their property's valuation and, if unhappy with the outcome, appeal to the Valuation Tribunal for England, in a similar way to existing council tax band challenges.
Help if you're struggling to pay
For households finding council tax difficult to manage, help is available before bills become a serious problem. Councils can agree to spread a bill over 12 monthly instalments rather than the standard 10, reducing the size of each individual payment, and many local authorities also run discretionary hardship funds for residents facing a sudden change in circumstances. England's Crisis and Resilience Fund, running from April 2026 to March 2029, provides further support for low-income households dealing with financial shocks, delivered through local councils rather than as a single national scheme. Council tax is treated as a priority debt by debt charities, meaning it is generally worth addressing before less urgent bills if money is tight, since missed payments can escalate quickly to enforcement action. Anyone struggling to pay should contact their council directly in the first instance, rather than waiting for a reminder or final notice to arrive.
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DISCLAIMER
This article is editorial information, not financial advice. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority. Figures were correct at the last review date shown above; verify current rates and rules with the primary sources listed below before acting.
Frequently asked questions
How much is the average council tax bill in 2026-27?
The average Band D bill in England is £2,392, up 4.9% on the previous year.
Can I challenge a council tax rise?
You cannot challenge the rate a council sets, but you can challenge your property's valuation band if you believe it is incorrect.
What is the High Value Council Tax Surcharge?
It is a new charge, sometimes called a mansion tax, on homes in England worth more than £2 million, expected from April 2028.
Who pays the mansion tax, the owner or the tenant?
The homeowner pays the High Value Council Tax Surcharge, not the occupier, and it is collected alongside standard council tax.
What help is available if I cannot pay my council tax?
You can ask your council to spread payments over 12 months instead of 10, and check whether a local hardship fund or the Crisis and Resilience Fund applies to you.
SOURCES
- GOV.UK -- High Value Council Tax Surcharge consultation – accessed 14 July 2026
- MHCLG -- Council tax levels publication 2026-27 – accessed 14 July 2026
