Council Tax London: What You Pay, Who Exempts You, and How to Save

When you live in council tax London, a local property tax used to fund services like waste collection, libraries, and policing. Also known as local taxation, it’s not optional—every household in London pays it unless they qualify for an exemption or discount. Unlike rent or utility bills, council tax is tied to your home’s value band, not your income. That means two people living in identical flats might pay different amounts based on when the property was built and how it was assessed back in 1991.

The city is split into council tax bands, eight categories from A to H based on property value as of April 1, 1991. Most London homes fall into bands D to F. Band D is the baseline—what everyone else is measured against. If you live in a Band A flat, you pay 6/9ths of what a Band D household pays. In Band H? You pay double. The exact amount changes yearly, but as of 2025, a typical Band D property in London pays around £1,800–£2,200 a year, depending on the borough. Westminster and Kensington & Chelsea are usually the highest; Barking & Dagenham and Havering are among the lowest.

Not everyone pays full price. council tax discount, a reduction applied when only one adult lives in the home. That’s a 25% cut—common for students, people living alone, or those with a partner who’s exempt. Students don’t pay council tax at all, but their landlords must still register the property as exempt. If you’re on a low income or receiving benefits like Universal Credit, you might qualify for council tax exemption, a full or partial waiver based on household income and savings. Some disabled residents get a discount too—if your home has a room built for their needs or has been adapted for mobility, you could drop to a lower band.

It’s easy to overpay. Many people don’t update their status after a roommate moves out, a child turns 18, or they start working. Others miss out on discounts because they assume they don’t qualify. Check your bill every year. If your income dropped, apply for support—even if you didn’t before. Boroughs like Lambeth and Tower Hamlets have active hardship funds. You can also challenge your band if your home’s been reduced in size or if you think it’s wrongly classified. It’s not a quick fix, but it’s worth it if you’re paying too much.

What you’ll find in the posts below are real stories and practical guides from people who’ve navigated this system—how to get a discount, what to do when you’re wrongly billed, why students get exemptions, and how to avoid the traps that catch newcomers. No jargon. No fluff. Just what works for Londoners paying council tax right now.