Personal Finance

Council tax burdens in the UK's highest and lowest areas

Council tax burdens in the UK's highest and lowest areas
According to new data, London residents are less affected by council tax than people in other regions of the UK

According to a recent analysis, residents of some northern towns and cities pay more in council taxes than those who live in London's most affluent neighborhoods.

The study, conducted by the removals company Getamover . co . uk, compared the median household incomes from 2022 - 2023 across all local authorities in England with government data on band D council tax costs for 2025 - 2026.

The regions where residents spend the largest percentage of their income on council tax were identified. The results clearly indicate a north-south divide, with the north-left having larger bills.

At 10 percent of a person's median yearly income, Pendle, a borough in Lancashire in the North West, has the highest council tax percentage in England.

For individuals earning an average of 23,100 per year, this amounts to 2,535 points per year spent on council tax.

Of all local authorities in the United Kingdom, Pendle has the highest rate of child poverty, with 43.2 percent of children under 16 living in families with relatively low incomes in 2022 - 2023.

Council tax, on the other hand, is the lowest for residents of the City of London borough, accounting for 210% of an individual's yearly median income.

This indicates that, with an average income of £60,700, they pay 1,274.07 in council tax annually.

According to a recent study by real estate brokers Jefferies James, 13 percent of the homes in the area are worth more than two million pounds, making it home to some of London's most expensive real estate.

Which regions of the UK are most burdened by council taxes?

The information demonstrates how households in lower-income areas bear a disproportionately greater burden from council tax.

Overall, London dominates the bottom 10 tax burden areas, while Northern and Midlands local authorities dominate the top 20.

"These figures demonstrate significant regional inequality in the way that council tax affects household budgets," says David Burrows, head of Getamover . co . uk.

"Long-term financial health for families preparing to relocate can be greatly impacted by the correlation between average salaries and local tax rates.

It is important to consider how much of your monthly income, based on local wage levels, will be consumed by council tax, not just the headline amount.

Council taxes in the north are often comparable to those in the south. However, residents in these regions are spending a much larger percentage of their earnings on this tax due to the significantly lower average incomes in these areas.

According to recent research from The Equality Trust, council tax is a major cause of disproportionate taxation in the UK, with the richest 10% paying only 1.2 percent of their income in this area and the poorest 10% paying 7%.