When you rent out a property, there are a range of taxes you need to pay. One that’s sometimes overlooked is council tax – the fee that goes towards upkeep of the local area.
The type of property you rent out will determine whether you or your tenants are liable for council tax. Read on to find out how council tax works for landlords, including the rules for houses in multiple occupation (HMOs), and when the property is empty.
- What is council tax?
- How much is council tax for landlords?
- What are the council tax bands?
- Who pays council tax – landlord or tenant?
- HMO council tax – what are the rules?
- Do landlords have to pay council tax on an empty property?
- Can landlords get a council tax exemption?
What is council tax?
Council tax is charged to residents and property owners by their local authority.
It pays for upkeep and services in the local area, from bin collection and fixing potholes to schools and libraries.
Council tax is usually paid over 10 months from April to January. However, most local authorities allow you to spread your payments over 12 months if you need to.
How much is council tax for landlords?
How much council tax you pay depends on your property and where it’s located.
Every property is assigned a valuation band from A to H. Valuation bands are set by the Valuation Office Agency and based on a property’s value.
Your local authority then sets a council tax rate for each valuation band. These rates usually change each year.
You can find out the council tax band of a property on the government website. To find out your rate, you can cross reference your band with the rate set by your local council.
The amount paid in different areas of England and Wales varies significantly. For example, residents in Wandsworth, London, pay £969 a year for a Band D property (the most common band). This rises to £2,543 in Rutland in the East Midlands.
Other areas with low council tax for Band D properties include:
- Westminster (London): £975
- Hammersmith and Fulham (London): £1,387
- Kensington and Chelsea (London): £1,530
- Tower Hamlets (London): £1,676
- Windsor and Maidenhead (Berkshire): £1,684
Other areas with high council tax for Band D properties include:
- Nottingham (Nottinghamshire): £2,530
- Lewes (East Sussex) £2,503
- Wealden (East Sussex) £2,484
- Newark and Sherwood (Nottinghamshire) £2,468
- Bristol (Bristol) £2,460
What are the council tax bands?
Council tax bands are based on a property’s valuation on 1 April 1991 in England and 1 April 2003 in Wales.
| Council tax band | Property value |
| A | Up to £40,000 |
| B | £40,001 to £52,000 |
| C | £52,001 to £68,000 |
| D | £68,001 to £88,000 |
| E | £88,001 to £120,000 |
| F | £120,001 to £160,000 |
| G | £160,001 to £320,000 |
| H | Over £320,000 |
Council tax in Scotland is calculated using different bands, and is generally lower than in England and Wales. See more on the Scottish government website.
Who pays council tax – landlord or tenant?
The simple answer is that in most cases when you have tenants living in your property, they’ll be liable to pay the council tax.
There are some exceptions in which the landlord would pay council tax on behalf of their tenants.
These include the following scenarios:
- the tenants are asylum seekers
- the property is a house in multiple occupation (HMO) and the tenants pay rent separately
- all the tenants are less than 18 years old
Can a landlord pay council tax for a tenant?
In the instances detailed above, the landlord is required to pay council tax for their tenants. However, there’s nothing to stop you paying it on renters’ behalf if you want to.
For example, you may want to offer bills-included tenancies and cover council tax.
Do student tenants pay council tax?
If you let a property to full time students, it will be exempt from council tax.
This means that while it’s occupied, neither you or your student tenants have to pay council tax.
HMO council tax – what are the rules?
If you rent a property to three or more tenants from two or more households then it’s considered an HMO.
Since December 2023, HMOs have been considered one dwelling for council tax and landlords are now responsible for paying it.
This means HMO landlords can include the cost of council tax in the rent they charge.
Read more: HMO requirements – what is the minimum bedroom size in the UK?
Do landlords have to pay council tax on an empty property?
In most cases, you’ll be required to pay council tax when your property is empty.
If the property is empty for up to seven days, you won’t need to pay council tax. Any period longer than seven days and you’ll need to pay.
If your property is empty for longer than two years, you may be required to pay extra council tax (up to four times the regular rate).
Can landlords get a council tax exemption?
As well as for students, there are some other council tax exemptions that could apply to landlords’ properties:
- renovations – you might be exempt from paying council tax if your property is undergoing major renovations or repairs. The local authority will tell you when you need to start paying again
- derelict properties – if the property is uninhabitable due to damage or needs significant structural repairs, it could be considered derelict and may be exempt from council tax
Do you have any unanswered questions about council tax for rental properties? Let us know in the comments.
Useful guides for landlords
- Renting out your property: rules for landlords in 2025
- How to Rent guide 2025: the essential checklist for landlords
- Buy-to-let tax changes landlords need to know about
- Renters’ Rights Bill – what do landlords need to know?
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