Council tax changes for 2026/27: what is going up and why
English bills rose by around 4.9 per cent on average in April 2026. Welsh and Scottish bills rose by more. Seven English councils were allowed to raise above the usual 4.99 per cent referendum cap. Police and fire precepts rose by up to £15 and £5 on Band D.
The referendum threshold
Each year the government sets a maximum percentage by which English councils can raise council tax without a local referendum. For 2026/27, the threshold is:
- Upper-tier authorities (counties, unitaries, London boroughs, mets): up to 4.99 per cent (2.99 per cent core plus 2.00 per cent adult social care precept).
- District councils: up to 2.99 per cent or £5 on Band D, whichever is greater.
- Police and Crime Commissioners: up to £15 on Band D. Six commissioners (Bedfordshire, Cheshire, Durham, Gloucestershire, Humberside and Northumbria) were allowed up to £18.50.
- Fire and rescue authorities: up to £5 on Band D (Northamptonshire up to £10).
- Parish and town councils: no referendum limit was set for 2026/27.
Going above these limits requires a local referendum. Most authorities went to the limit: MHCLG counts 274 of the 384 authorities with a limit as taking the maximum increase in 2026/27, including 30 of the 37 police and crime commissioners and 23 of the 29 fire and rescue authorities.
Sources: Referendums Relating to Council Tax Increases (Principles) (England) Report 2026-27 (laid 9 February 2026) and MHCLG, Council Tax levels set by local authorities in England 2026 to 2027, Table 4.
The seven councils allowed above-cap rises
The government can set a higher referendum limit for an individual council, usually at that council's request because of pressure on its finances. Seven councils had a higher limit for 2026/27.
| Council | Highest rise without a referendum |
|---|---|
| Bournemouth, Christchurch and Poole | 6.74% |
| North Somerset | 8.99% |
| Shropshire | 8.99% |
| Trafford | 7.49% |
| Warrington | 7.49% |
| Windsor and Maidenhead | 7.49% |
| Worcestershire | 8.99% |
Each council's own limit is set in the 2026-27 referendum principles report: 7.5 per cent for Trafford, Warrington and Windsor and Maidenhead, 9 per cent for North Somerset, Shropshire and Worcestershire, and 6.75 per cent for Bournemouth, Christchurch and Poole, each including the 2 per cent adult social care precept. A rise must stay below the limit, so the figures above are the highest possible. Check your council's budget papers for the rise it actually set.
Second home premium
The Levelling-up and Regeneration Act 2023 gave English councils the power to charge a premium of up to 100 per cent on furnished homes that nobody lives in as their main residence. The earliest it could apply was 1 April 2025, because a council must decide at least a year before the premium starts. Whether your council charges it, and from when, is set out in its own council tax decisions. Welsh councils can charge second home premiums of up to 300 per cent, and Scottish councils up to 100 per cent.
Some homes are excepted from the premium under the Council Tax (Prescribed Classes of Dwellings and Consequential Amendments) (England) Regulations 2024. They include homes actively marketed for sale or let (for up to 12 months), inherited homes (for up to 12 months after probate or letters of administration are granted), job-related homes, and annexes used as part of the main home.
Empty property premiums
The same Act sharpened the empty homes premium. Since 1 April 2024, councils can apply:
- Up to 100 per cent extra after one year empty (down from two).
- Up to 200 per cent extra after five years.
- Up to 300 per cent extra after ten years.
An empty home undergoing major repairs or structural alteration is excepted from the empty homes premium for up to 12 months (this exception does not apply to second homes).
Worked example: the average Band D bill
MHCLG puts the average Band D bill in England (including adult social care and parish precepts) at £2,280 for 2025/26 and £2,392 for 2026/27, a 4.9 per cent rise. Over the standard ten instalments, the 2026/27 average is about £239 a month. Over twelve, it is about £199 a month. To work out your own rise, compare the total on this year's bill with last year's.
What is changing in council tax administration
In April 2026 the government published its response to its 2025 consultation on modernising council tax administration. Bills will be spread over 12 monthly instalments by default from April 2028, and anyone who becomes liable from April 2027 will start on 12 instalments. You will keep the right to ask for 10. Separately, a High Value Council Tax Surcharge on homes valued at £2 million or more is due to start in April 2028.
Frequently asked questions
Is council tax going up in April 2026?
What is the referendum threshold for 2026/27?
Are second home premiums new in 2026?
Will my bill rise by exactly 4.9 per cent?
Related: see how your council compares, all the discounts you can claim to offset the rise, and our 10 ways to reduce the bill.