UK postcodes with lowest council tax in 2025

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What we do know: Local authorities with lowest council tax

  1. London Boroughs often dominate the list of lowest council tax burdens. For example:
    • The City of London has one of the lowest Band D council tax rates, partly because there are relatively few domestic households. (MoneyWeek)
    • Westminster, Wandsworth, Hammersmith & Fulham also feature in lists of areas with lower council tax. (Ideal Home)
  2. In Scotland, some of the lowest council tax areas include:
    • Na h-Eileanan Siar (the Western Isles) (Ideal Home)
    • South Lanarkshire, Shetland Islands, Angus, Orkney Islands, North Lanarkshire (Ideal Home)
  3. Some English non-London local authorities with relatively low Band D council tax (outside London):

Why postcodes are harder

  • Council tax is set by local authorities (councils), not by postcode. So many postcodes within a council area will share the same or very similar council tax rates (for a given band).
  • Postcodes are very granular; unless there is published data breaking down by postcode (very rare), you mostly have to rely on which council you fall under.

Inferences: Postcodes likely to have low council tax

Given the above, we can infer that postcodes within the London boroughs mentioned (City of London, Westminster, Wandsworth, Hammersmith & Fulham) will tend to have low council tax, especially for Band D properties. Similarly, postcodes in low-tax areas of Scotland like Na h-Eileanan Siar, Shetland, etc., will also have low council tax.

Here are some examples:

  • Postcodes in W1, W2, SW1 etc. (Westminster)
  • Postcodes in SW15, SW18, etc. (Wandsworth)
  • Postcodes in W6, W12 (Hammersmith & Fulham)
  • Postcodes in EH or KW or HS in Scotland that map to those low-tax local authorities
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    Methodology (short)

    I used the official Government release “Council Tax levels set by local authorities in England 2025–26” and individual council pages / official PDFs for council tax rates, plus reputable regional analyses for burden and housing context. Where I quote Band D amounts or official statements I cite the council or gov.uk source. (GOV.UK)

    Case study 1 — Wandsworth (Greater London) — London’s lowest Band D headline (resident-friendly policy)

    Typical postcodes: SW18, SW15, SW17, parts of SW11 & SW12 (Wandsworth borough).
    Band D (2025–26, Wandsworth average including adult social care but excluding GLA): Wandsworth publishes a very low council-only Band D (council portion ~£409.80; average including council precepts ~£417.48). The total including the Greater London Authority (GLA) precept raises the typical Band D bill for Wandsworth residents towards ~£997.75 (this is the widely quoted “lowest Band D in England” figure used in national comparisons). (Wandsworth Borough Council)

    Why it’s low

    • Wandsworth Council has repeatedly frozen the council’s own element of council tax in recent years and highlights low debt and high reserves as reasons it can do so. That freeze on the council’s own charge is the major reason its Band D looks tiny compared with most English authorities. (Wandsworth Borough Council)

    Local context & impacts

    • High house prices, low council charge: Wandsworth remains an expensive London borough in market terms (central/south-west London), so the council tax as a proportion of income/property value is low — attractive if you’re buying/renting there. But remember the GLA precept (mayoral / policing / transport) is set separately and has increased, so the headline saving comes mainly from the borough element. (Wandsworth Borough Council)
    • Practicalities: If you’re looking at postcodes SW15 / SW18 expect low council-only bills, but check the total bill (borough + GLA + any levies). Wandsworth is often marketed as “lowest council tax in the country” by the council itself. (Wandsworth Borough Council)

    Pros/cons for movers/investors

    • Pro: Lower ongoing local tax burden than most English local authorities — positive for disposable income and rental yield math.
    • Con: Council tax is only one cost in London — property prices, rent levels, and GLA precept matter; public services funding choices can change over time.

    Case study 2 — City of London (Square mile) — tiny domestic base, low burden per household

    Typical postcodes: EC2M, EC2V, EC4M, EC4N (City of London square-mile postcodes).
    Band D (2025–26): The City of London often appears in “lowest council tax burden” lists because its domestic population is very small relative to non-domestic/business rates; official booklets and the council’s 2025–26 budget show City Band D figures and the small domestic base. MoneyWeek and other analyses rank City of London top for lowest burden relative to median income. (City of London)

    Why it’s low

    • The City’s tax picture is skewed by land use: heavy commercial footprint (business rates) and relatively few private homes; the council spreads fewer domestic costs across fewer households. That produces low per-household council tax compared with most residential authorities. (City of London)

    Local context & impacts

    • Very different day⇄night economy: If you live in an EC postcode you may have low council tax but live among a heavy commercial district (limited neighbourhood residential infrastructure compared with a normal borough).
    • Practicalities: Because domestic voters and households are few, service mixes (and priorities) differ from a regular suburban borough. If you’re comparing councils mainly on council tax, check actual Band D totals and service mix. (City of London)

    Case study 3 — Na h-Eileanan Siar / Western Isles (Scotland) — lowest Scottish area Band D examples

    Typical postcodes: HS1–HS9 (Hebrides / Outer Hebrides postcodes).
    Band D (2024/25–2025 reference): Na h-Eileanan Siar’s Band D council tax for recent years has been among the lower Scottish local authority figures (~£1,290.75 reported in the authority’s published schedule — Scotland’s billing system differs from England’s because of Scottish Water charges and different precepting). Scotland publishes Band-by-Band spreadsheets for 2025–26 which show the relative positions. (Comhairle nan Eilean Siar)

    Why it’s low

    • Lower population density and local budgeting choices — but note Scottish Water charges and different service funding make direct England⇄Scotland comparisons imperfect. Also household incomes and housing markets differ significantly from urban England. (Comhairle nan Eilean Siar)

    Local context & impacts

    • Rural reality: Lower council tax in pounds doesn’t always mean “cheaper living” — transport, heating, and remoteness drive other costs. House prices in the Outer Hebrides are substantially below UK averages, but local incomes and employment opportunities differ too. (Office for National Statistics)
    • Practicalities: For a buyer attracted by low council charges, consider seasonal tourism, ferry/flight connectivity, heating costs, and access to services.

    Case study 4 — Trafford (Greater Manchester) — low outside-London example (and rising pressures)

    Typical postcodes: M16, M17, M41, parts of M32, etc. (Trafford borough postcodes vary across Altrincham, Stretford, Sale areas).
    Band D (2025–26): Trafford historically has been among the lower non-London councils for Band D (local pages list Band D around ~£2,120.84 for 2025–26 on Trafford’s site for some bands — note: English borough totals vary with precepts). Trafford was also listed among councils given permission to increase bills by larger caps in 2025 due to exceptional financial pressures. (beta.trafford.gov.uk)

    Why it’s low (and why that may change)

    • Trafford’s pre-2025 strategy kept council charges moderate, but wider local government funding pressures (social care costs, central funding squeezes) pushed some councils toward larger permitted increases in 2025 — Trafford was singled out as one of the councils granted permission for higher rises. That means low-rates can be volatile. (beta.trafford.gov.uk)

    Local context & impacts

    • Middle ground: Trafford offers relatively affordable council tax for a suburban Greater Manchester borough with decent transport links to central Manchester — making it attractive for families and commuters.
    • Practicalities: If low council tax is your priority, check whether a council has applied for (or been permitted) exceptional increases — those change the picture quickly.

    Case study 5 — Shetland Islands — lowish Scottish Band D, remote services / high costs tradeoff

    Typical postcodes: ZE1, ZE2 (Shetland).
    Band D (2025–26): Shetland’s official pages and council tax surveys show Band D figures in the range ~£1,260–£1,300 (varies with Scottish Water additions and annual decisions). Shetland appears in lists of Scottish areas with relatively low Band D totals compared with other Scottish councils. (shetland.gov.uk)

    Why it’s low

    • Small population, local budget choices, and different service structures make per-household bills relatively modest in absolute GBP terms (again, Scottish Water and local geography are factors). (shetland.gov.uk)

    Local context & impacts

    • Living trade-offs: Lower council tax but higher transport/heating/food costs; important to weigh overall cost-of-living. For second-home buyers or retirees, it might be attractive; for workers, opportunities are more limited than urban areas.

    Practical checklist for anyone using this to pick a postcode

    1. Check the authority, not just the postcode fragment. Council tax is decided by local authorities — many postcodes fall inside specific councils. Use GOV.UK or the council’s page to confirm the total Band D amount (council + precepts + police/fire/GLA). (GOV.UK)
    2. Look at the total bill (all precepts). In London the GLA precept is large — so a borough’s “council-only” freeze can be offset by the GLA element. (Wandsworth Borough Council)
    3. Check recent exceptional increases. Some councils sought permission for larger hikes in 2025; that can quickly change a “low” council tax ranking. (The Guardian)
    4. Compare council tax to incomes/house prices. Low Band D in an area of high house prices could still be good value — or mean services are lean. MoneyWeek-style burden metrics are helpful. (MoneyWeek)
    5. If you want exact postcodes: I can match council boundaries to postcode ranges and produce a ranked table of specific postcodes with the lowest total Band D for 2025–26 (includes the council + precepts). Say the word and I’ll compile it (this requires pulling council boundary→postcode mapping and joining to the 2025 dataset).

    Sources (key ones used)

    • DLUHC / Gov.uk statistical release: Council Tax levels set by local authorities in England 2025 to 2026. (GOV.UK)
    • Wandsworth Council council tax page & guide to council tax (2025–26). (Wandsworth Borough Council)
    • MoneyWeek analysis of council tax burden (2025). (MoneyWeek)
    • Na h-Eileanan Siar (Western Isles) council tax bands page (official). (Comhairle nan Eilean Siar)
    • Trafford council tax 2025 bands and news coverage on exceptional increases. (beta.trafford.gov.uk)
    • Shetland Council council tax survey / pages. (shetland.gov.uk)

     

 

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