Council Tax and Local Taxation

Council Tax is the system of local taxation used to part fund services provided by local authorities.  Introduced in 1993, the rate of tax payable is based on the value of residential property, it raises around £1.9 billion every year across Scotland.

Although responsibility for setting council tax levels rests with local authorities in Scotland, the Scottish Government has worked with authorities to freeze council tax since 2007.

The amount that households pay depends on their band (A to H) which is based on the value of the property in 1991, and is worked out from the Band D rate.  The table below shows the share of the Band D rate each band pays.

 

Band

Value (£) (as at 1991)

Rate of Band D

Percentage

A

Up to 27,000

6/9

67%

B

27,001 to 35,000

7/9

78%

C

35,001 to 45,000

8/9

89%

D

45,001 to 58,000

9/9

100%

E

58,001 to 80,000

11/9

122%

F

80,001 to 106,000

13/9

144%

G

106,001 to 212,000

15/9

167%

H

212,001 and over

18/9

200%

Special provisions for single person households, disabled persons and students as well as some other groups exist, which may allow people in those groups a discount on their council tax.

People with low incomes may be eligible for help through Council Tax Reduction, which is administered by local authorities.

Further information on how these reduction and other elements of the tax work can be found in our online leaflets.

Council Tax Benefit was abolished by the UK Government on 31 March 2013.  From 1 April, responsibilty for assisting those who need help with their council tax in Scotland sits with the Scottish Government.  As the Scottish Government cannot operate a benefit system, support will be made available through a scheme of Council Tax Reductions.

Scottish Ministers consider the current council tax system to be unfair and intend to consult with others on options for a replacement fairer local tax, based on ability to pay, later in this Parliament.