Find out about how we are reforming Council Tax

Council Tax is something we all must pay to help fund public services. It isn’t a charge for each service you use, and it doesn’t buy you certain things. It’s also not the only source of funding for councils.

The Council Tax you pay is based on what your property is worth, the home you live in, who else you live with and in some cases, how much money you have. The system looks at your wealth compared to others to make sure people with more wealth contribute more than those with less wealth. 

Find out more about what your Council Tax pays for.

All domestic properties in Wales are put into 9 tax bands (bands A to I). The tax bands are based on how much a home and the land it is on is worth.

The Valuation Office Agency (VOA) values properties for Council Tax purposes. They are the governments' property experts for Wales and England. 

Watch their video which answers common questions about Council Tax. The video also has information about how properties are banded and what you need to do if you want to challenge your band. 

Challenges to Council Tax bands must meet certain criteria and won’t always lead to a change in band. You must be aware that bands can be changed up or down.

If you are struggling to pay your Council Tax bill please contact your local council. It is important you do so without delay, and it is much better to do this before you miss a payment. You can find a range of advice and support on the Advicelink Cymru website, or call the Advicelink Helpline on 0800 702 2020.

Our Phase 1 consultation (July to October 2023) set out our broad aims and programme for making Council Tax fairer. Our Phase 2 consultation (November 2023 to February 2024) proposed 3 approaches to changing the system, and 3 choices for when those changes should be implemented.

What you’ve said

We’ve listened to what you told us through the Phase 2 consultation in 2024 and we have decided to deliver Council Tax reform over the slower timeline proposed, making changes in 2028, as this was the most popular view. 

Plans will be further developed to look at a revaluation of properties and how the tax bands and charges should be made fairer. We will consult on further changes in the next Senedd term.

What happens next

The Local Government Finance (Wales) Act 2024 is the law which allows for more frequent, regular revaluations every 5 years beginning from 2028. This is to ensure valuations are kept up-to-date and you are paying the correct amount of Council Tax.

In the meantime, we are carrying on improving other elements of Council Tax:

• reviewing all of the discounts, disregards, exemptions and premiums, to ensure these are fit-for-purpose and align with policy aims. There are 53 categories to review
• keeping and improving our national Council Tax Reduction Scheme which provides essential financial support for low-income households
• undertaking regulatory work to embed best practice in the treatment of households struggling in Council Tax debt
• continuing to raise awareness of how Council Tax works and what it pays for, addressing common myths and raising awareness of the wide range of support for people
• undertaking regulatory work to improve the appeals process so that it is more effective and easier to navigate, improving transparency of information

Nearly half of households in Wales currently receive a discount or reduction on their Council Tax bill. It is important we review these arrangements because they have been in place for a long time, to make sure the rules keep the system fair.

A review is underway of the 53 categories of discounts, disregarded persons, exemptions and premiums. We will release consultations on specific changes as they are developed. We have decided to keep the 25% single adult discount. 

We are continually maintaining and improving our Council Tax Reduction Scheme, which provides vital support to around 261,000 low-income households across Wales. In 2025 we made changes to regulations to enable local authorities to administer support more effectively. 

We are continuing to tackle the impact of long-term empty and second homes on local communities. There will be more time for these policies to result in positive effects on housing supply, before we bring in further changes to Council Tax.

People who are in Council Tax debt

Council Tax is a well-collected and stable form of taxation to fund our public services. We are considering what more we can do to help people who are struggling to pay their Council Tax. We are also considering what more we can do to give councils the tools they need to collect Council Tax from those avoiding paying their fair share.

We know from previous research that many people don’t know how the Council Tax system works, what it pays for, how decisions about it are made, and which organisation is responsible for deciding different rules. 

We are committed to improving awareness of Council Tax and improving access to information through our wider reform programme.

We will protect people’s rights to appeal as part of any future changes to the system, using independent organisations such as the Valuation Office Agency and the Valuation Tribunal for Wales. We are making the process of navigating between these organisations easier and more transparent.