Do landlords pay council tax? A landlord's guide to council tax responsibility
Council tax funds the local services that councils in England, Wales and Scotland are responsible for providing.
Properties are assessed by band, with the highest rated properties liable for higher council tax payments.
Who pays, a landlord or a tenant, can change depending on who is resident in the property, the type of tenancy agreement, whether the property is let by the room, and whether any exemptions apply.
This guide sets out a landlord’s responsibility for paying council tax in England. This includes the changes made to council tax liability by the Renters’ Rights Act.
What is council tax?
Council tax is a charge on residential properties in England, Wales and Scotland, introduced in 1992 so that local authorities can fund the local services they are responsible for providing.
Properties are placed into one of eight bands, and the band determines how much is due, with higher banded properties paying more.
Unless an exemption applies to the property, there will always be someone liable to pay council tax on it.
How is council tax calculated?
The Valuation Office Agency values properties for council tax purposes based on the amount the property would have sold for on the open market on 1 April 1991, even if it was built or adapted after that date.
Once a value has been set, the property is placed into one of eight bands, from A to H, and the band determines how much council tax is due.
Normally the property will stay in the same council tax band, but the banding may be updated after a significant renovation, a general review of all domestic properties, or on the sale of the property.
How the Renters' Rights Act affects council tax liability
The Renters’ Rights Act came into force on 1st May 2026, simplifying the rules around council tax liability for assured tenants and vacant properties.
Prior to 1st May 2026, it was not always clear who was liable to pay council tax when a tenant left the property without first ending their tenancy. Either the tenant or the landlord could be held liable depending on the length of the initial tenancy agreement, and whether the tenancy continued as a statutory or a contractual periodic tenancy.
The Renters’ Rights Act has simplified this significantly for most tenancies. From 1st May 2026, as long as an assured tenancy is still running, and the whole property is let on one tenancy, the tenant will be liable for paying council tax.
Who pays council tax: Landlords or tenants?
As a general rule, council tax in England will be payable by:
- the tenant while they have an assured tenancy for the whole dwelling.
- the landlord where the tenant only rents a room in a house in multiple occupation (HMO).
- the landlord where nobody is resident, and there is no assured tenancy in place.
There are some scenarios where this will not be the case though.
What is the hierarchy of responsibility for who pays council tax?
Usually, unless the property is let by the room, council tax liability is assigned based on a hierarchy of liability. Local authorities work down the list below until they find the person to bill for the council tax:
- A resident freeholder of the whole or part of the property.
- A resident leaseholder, including an assured tenant, with a tenancy relating to the whole or any part of the building.
- A resident who is a Rent Act statutory tenant of the whole or any part of the dwelling.
- A resident with a contractual licence to occupy the whole or any part of the dwelling.
- Any other resident, including a squatter.
- A non-resident owner with the relevant material interest in the property.
If more than one resident is on the same rung of the hierarchy, they will be jointly and severally liable to pay the council tax.
What is an ‘owner’ for council tax purposes?
Where there aren’t any residents, council tax responsibility will fall on the non-resident owner. Importantly, this doesn’t always mean the landlord.
Instead, a non-resident owner is someone with a material interest in the property. This means:
- A freeholder
- A leaseholder/tenant with a lease of 6 months or more; and, as of 1st May 2026,
- A tenant with an assured tenancy of any length.
Which ‘owner’ is responsible for paying council tax?
More than one person can have a material interest in the property at the same time. In these cases, council tax liability will fall on the owner with the inferior material interest. Typically, this will be a tenant.
As of 1st May 2026, if you have granted an assured tenancy for the whole property, the tenants will have an inferior material interest to you, until their tenancy ends.
As a result, the tenant is responsible for paying council tax until their tenancy is properly terminated by a notice to quit, an agreed surrender, or the landlord enforcing a possession order.
Who is responsible for paying council tax in an HMO?
Where the property is an HMO, the landlord is responsible for paying council tax if the tenants are occupying or paying rent for only part of the council tax unit.
In England, since December 2023, most HMOs must have a single council tax bill for the property. This put an end to the practice of splitting an HMO up so there were multiple council tax units in one building (known as disaggregation). So, in most cases, the landlord will be liable where an HMO is let by the room.
The only exception to this is a Section 257 HMO (a converted building that doesn’t meet the 1991 building regulations). These properties may have different council tax bills for different parts of the building.
This means that:
- The landlord will be liable for the council tax where the property is let on a per room basis and the property has one council tax bill.
- Where the whole property is let out on a joint tenancy, the tenants will normally be responsible for paying the council tax unless an exemption applies.
- If the property is a Section 257 HMO, the tenant will be liable to pay council tax if their tenancy agreement covers the same area of the building as the council tax bill. If they are paying rent for part of it, the landlord will be responsible.
Who pays council tax when the tenant leaves before their tenancy ends?
From 1st May 2026, assured tenants who rent the whole property will remain liable to pay council tax until the tenancy is formally ended. This applies even if they move out early, or leave without giving the landlord appropriate notice.
In the rare cases where the tenant has a non-assured tenancy, liability while the property is empty will depend on the length of the fixed-term. If the fixed-term lasts for six months or more, the tenant will be liable to pay council tax on the empty property until their tenancy agreement ends.
If the tenancy is for less than six months, the tenant will only be liable for council tax while they remain resident in the property. Once they move, liability moves to the landlord.
Do landlords pay council tax if the property is empty?
If there is nobody resident and no tenancy in place, then the landlord will be responsible for paying any council tax that is due.
The landlord may be entitled to a discount while the property is unoccupied. They should contact their local authority to check what may be available.
Who is responsible for unpaid council tax?
Whoever is responsible for paying the council tax is responsible for any lack of payment.
Sometimes, there may be some confusion as to whether the tenant or the landlord is responsible for paying council tax. For example, a local authority may attempt to bill the landlord for a period because they believe the tenancy has ended.
In these cases, you should retain evidence that the tenancy agreement was continuing over the period. Typical evidence would include things like:
- The tenancy agreement
- The notice to quit or surrender agreement
- Evidence of you contacting the tenant to try and arrange surrender
- Proof of rent payments or demands for unpaid rent.
Who is liable to pay council tax during a fixed-term tenancy?
As of 1 May 2026, most fixed-term tenancies in England have been replaced by assured periodic tenancies. There will usually only be a fixed-term tenancy if the tenancy is not an assured tenancy. For example, when letting to a company or the landlord is also resident in the same building as the tenant.
These tenancies operate under the rules that were in place before 1st May 2026. This means the tenant will be liable to pay council tax while resident, but whether they pay while the property is empty will depend on the tenancy length.
If the tenancy has a fixed-term of six months or more, then the tenant will be liable to pay the council tax until the tenancy ends.
If the tenancy is for less than six months, the tenant will only be liable to pay while they are resident in the property.
What should landlords include in their tenancy agreement about council tax?
Tenancies typically set out who is responsible for paying the council tax, as well as requiring the tenant to notify the local authority upon taking up occupation.
However, it should be noted that the terms of a tenancy agreement will not affect council tax liability. If a landlord is responsible for paying council tax, then the local authority may chase them, even if the tenancy agreement suggests the tenant is responsible.
Council tax discounts landlords should know about
Local authorities have the discretion to give a discount of up to 100% for properties that are unoccupied.
However, not all local authorities will offer a discount, and many will actually charge a higher rate while the property is unoccupied.
Landlords should check their local authority's website to see what discounts, if any, are available and see what their council tax bill should be.
How can landlords challenge a council tax valuation?
If an owner receives a notice from the Listing Officer advising that they have altered the entry for the property in the Council Tax Valuation List, the owner has six months to make a proposal if they do not agree with the change. If the Valuation Officer does not agree that the property should be rebanded, the owner has a right of appeal to the Valuation Tribunal.
Council tax responsibility FAQs
Are underage residents liable for council tax?
No. A resident for council tax purposes is a person aged 18 or over who lives in the property as their sole or main residence.
This means an underage person is not classed as a resident, so liability would fall to the next person in the hierarchy who is resident, or to an owner if there is no suitable resident.
Are lodgers liable for council tax?
No. As the lodger will share at least part of the property with the owner, who is resident, they will not be responsible for paying the council tax. In these cases, the owner of the property is resident and higher than any lodgers on the hierarchy of responsibility.
Do landlords pay council tax for students?
No. Where a property is occupied entirely by qualifying students, no council tax is owed, even if the landlord would normally be liable. This exemption only lasts for as long as every tenant in the property qualifies as a student.
The students will normally need to provide proof they are studying to qualify for this exemption.
Who is responsible for council tax after a tenant leaves?
For assured tenancies, this will depend on whether the tenancy agreement has also ended.
If the tenant has an assured tenancy for the whole property, then they will remain liable for the council tax until the tenancy ends, typically after they have served a notice to quit or agreed to surrender the tenancy.
Once the tenancy has ended properly, and the property is vacant, the landlord will become responsible for the council tax.
Can a landlord include council tax in rent?
Yes, the landlord can include the cost of paying for the council tax within the rent. However, they cannot make the tenant liable for council tax that is the responsibility of the landlord.
Can a landlord be liable for council tax on multiple properties?
Yes, if multiple properties are empty or let by the room, the landlord can be responsible for paying council tax on multiple properties.
Who notifies the council when a tenant leaves?
This should be the tenant, but in practice it’s sensible for the landlord to notify the local authority if the bill payer changes or a tenancy ends.