What is council tax? –
Introduction 👋
Moving into a new home can be confusing, especially with so many bills to pay.
One of these bills that grown-ups have to pay is called council tax.
But what is council tax?
And what does it do?
Today we’re going to teach you everything you need to know about council tax.
Disclaimer: This website provides information for guidance and educational purposes only. The Grown-Up School does not provide regulated financial advice. You can seek independent financial advice from a suitably qualified and regulated professional advisor. Check out our disclaimer policy for more information.
What is council tax? 🤷♀️
Council tax is money that you pay to your local council, to look after your area.
In the USA, council tax is known as “property tax”.
Council tax helps to pay for local services in the community like:
- law enforcement/police 👮♀️
- fire protection 🚒
- education 👩🏫
- libraries 📚
- and road/highway construction 🛣️
The amount of council tax you have to pay depends on the area that you live in and the house that you live in.
You can find out estimated property/council tax costs for your area here –
- England/Wales UK – https://www.gov.uk/council-tax-bands
- Scotland UK – https://www.saa.gov.uk/
Who pays council tax? 🧐
Usually, people who own or rent a house or flat need to pay council tax.
It’s a way to share the cost of local services!
Discounts and Exemptions
Sometimes, if you live alone, are a student, or have a disability, you might get a discount or not have to pay council tax at all!
Check with your local council to find out if you’re eligible for a discount or an exemption.
Who decides how much council tax is? 🤔
The local council for the area you live in chooses how much each tax band is.
Councils usually work out how much money is needed to keep everything running smoothly for that area, then share the cost among the people who live there.
What happens if you don’t pay council tax?
Council tax can be one of your most important bills to pay, because if you don’t pay it quite serious things can happen.
If you don’t pay your council tax, your local council will try to recover the money from you that you owe them. To get the money paid, they can do things like:
- Send a bailiff to take items from your home, and sell them to recover the money. E.g. your TV or car
- Take money from your pay at work (this is called an “attachment of earnings”)
- Apply to make you declared bankrupt if you owe more than £5,000
- Go to court to try and force you to sell your home to repay the debt
You could also be sent to prison for up to 3 months if the court decides you don’t have a good reason to not pay your Council Tax and you refuse to pay. 🚓
Conclusion 👍
So that’s it!
Council tax is money that you pay to your local council, to look after your area.
Council tax helps to pay for local services in the community like:
- law enforcement/police 👮♀️
- fire protection 🚒
- education 👩🏫
- libraries 📚
- and road/highway construction 🛣️
The amount of council tax you have to pay depends on the area that you live in and the house that you live in.
If you don’t pay your council tax, lots of bad things can happen, including you potentially getting sent to prison for 3 months.
If you know any friends or family members who might benefit from learning about council tax, share this post with them!
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