The UK areas with the highest and lowest council tax burden

Residents in some northern towns and cities have a higher council tax burden than those in the most exclusive neighbourhoods in London, new analysis has found.

The study, by removals company Getamover.co.uk, looked at government data on band D council tax costs for 2025/26 versus median household incomes from 2022/23 across all English local authorities.

It determined in which regions residents are spending the highest proportion of their income on council tax. The findings show a clear north/south divide – with the North left with higher bills.

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In Pendle, a borough in Lancashire in the North West, residents pay the highest proportion of income on council tax in England – at 10.97% of a person’s median annual income.

This equates to £2,535.19 spent yearly on council tax for people on an average annual income of £23,100.

Pendle has the highest level of child poverty of any UK local authority, with 43.2% of children under the age of 16 living in relatively low-income families in 2022/23.

City of London borough residents, on the other hand, pay the lowest, with 2.10% of someone’s annual median income going to council tax.

This means they are paying £1,274.07 a year in council tax, on average incomes of £60,700.

Yet the area is home to some of the most expensive property in London, with 13% of homes worth more than £2 million, according to a recent study by property brokers Jefferies James.

Which parts of the UK have the highest council tax burden?

The data shows how council tax creates a much higher relative burden on households in areas where incomes are lower.

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

David Burrows, head of Getamover.co.uk, says: “These figures show significant regional inequality in how council tax affects household budgets.

“For families planning a move, the relationship between local tax rates and average salaries can significantly affect long-term financial health.

“What matters isn’t just the headline council tax figure, but how much of your monthly income it will consume based on local wage levels.”

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Top 10 local authorities with highest council tax burden relative to median income:
Rank	Local authority	Band D council tax cost 2025 to 2026	Median annual income	Council tax as percentage of median income
1	Pendle	£2,535.19	£23,100	10.97%
2	City of Nottingham	£2,656.19	£24,300	10.93%
3	Burnley	£2,455.83	£23,600	10.41%
4	Blackpool	£2,392.21	£23,300	10.27%
5	Torridge	£2,479.12	£24,200	10.24%
6	Redcar and Cleveland	£2,424.47	£23,800	10.19%
7	Middlesbrough	£2,487.65	£24,500	10.15%
8	Ashfield	£2,506.63	£24,700	10.15%
9	Walsall	£2,498.27	£24,700	10.11%
10	North Devon	£2,514.66	£24,900	10.10%

Nine of the 10 areas with the lowest council tax burden relative to income are in London, with Windsor and Maidenhead being the only non-London authority in the bottom 10.

None of the areas with the highest tax burden are in London or the South East, highlighting the significant north-south divide in the financial impact of council tax.

Which parts of the UK have the lowest council tax burden?

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Top 10 local authorities with lowest council tax burden relative to median income:
Rank	Local authority	Band D council tax cost 2025 to 2026	Median annual income	Council tax as percentage of median income
1	City of London	£1,274.07	£60,700	2.10%
2	Wandsworth	£997.75	£42,200	2.36%
3	Westminster	£1,019.00	£42,600	2.39%
4	Kensington and Chelsea	£1,591.59	£47,700	3.34%
5	Hammersmith and Fulham	£1,451.42	£38,300	3.79%
6	Tower Hamlets	£1,754.57	£37,300	4.70%
7	Windsor and Maidenhead	£1,823.50	£38,200	4.77%
8	Islington	£2,012.10	£40,300	4.99%
9	Southwark	£1,877.90	£36,200	5.19%
10	Camden	£2,106.69	£40,600	5.19%

Many northern local authorities charge similar council tax to southern areas. But the significantly lower average incomes in these regions mean residents are spending a much higher percentage of their earnings on this tax.

Recent research from The Equality Trust found council tax is a key source of disproportionate taxation in the UK, with the poorest 10% paying 7% of their income on council tax while the richest 10% pay just 1.2%.