Council tax and rented property – who is responsible? 

Council tax is one of the highest taxes people in the UK have to pay, and failing to pay it when it is your responsibility results in penalties. That’s why it’s very important for tenants to understand whether or not they or the landlord have the responsibility for paying council tax. 

Paying council tax usually falls to the person or people who live in the property, but there are exceptions. Let’s take a closer look…

What is council tax?

Council tax funds the council and local emergency services. It is calculated according to the size and value of the property you live in, with larger properties falling into higher council tax bands than smaller ones.

Who pays council tax for my rented property? 

Usually the tenant pays the council tax, because they live in the property. This will be made clear on the tenancy agreement, so if there’s any doubt, check your documentation or ask your estate agent.   

In some circumstances, the landlord might be responsible for the payment of council tax. This usually happens if you live in a house of multiple occupation (HMO), where each tenant has a separate contract. Even if the landlord pays the council tax, it is usually included in the rent.  

The landlord is also responsible for paying the council tax when the property is empty and awaiting new tenants. Remember to tell the council when you move out so that the council tax can be transferred back into the landlord’s name, or into the names of the new tenants. 

How much do I have to pay in council tax?

The amount of council tax you pay depends on the property. As a general rule, the larger the property, the more council tax you have to pay. Different local authorities charge different amounts, so don’t be surprised if you pay more or less than a friend in another area. 

Check the council tax band for your property here.

If you live on your own, you are entitled to a 25% discount on your council tax. On the other hand, if you rent a property with your partner, friends or grown-up children, the council tax can be split between you and the other adults you live with. This means that even if you live with just one other adult, you will find the amount each person pays in council tax will be lower than if you live alone.  

Are students exempt from council tax? Is anyone else?

Students are exempt from council tax. However, to benefit from the exemption, everyone living in the house must be a full-time student. If you graduate and decide to stay on in your student house, you will have to pay council tax. You will certainly need to discuss this with any of your housemates who are still studying! 

Apprentices under the age of twenty-five are also exempt, as are dependent partners of overseas students. There are other exemptions: you can see the full list here.

If the previous tenant lived alone, do my partner and I have to declare that two people are now living in the property?

Yes. It’s important to remember that residents have responsibility for telling the council who is living in the property. You have twenty-one days to declare a change in circumstances or advise the council of an error. If you don’t, you could be fined. 

If you are a tenant, it is highly likely that you are responsible for the council tax. If in doubt, check your tenancy agreement or go directly to the council. You can also talk to the Cobbles team - call us today on 01483 457 000.