How much will your council tax increase?
HOUSEHOLDS will see their council tax rise in weeks, but how much more will you have to pay?
Local authorities in England and Wales will increase taxes by the maximum amount in April.
The increase is the largest amount the government has authorized without the need to hold a local referendum.
Of the 136 authorities that have already announced their council tax proposals, 128 (94%) will increase bills by 4.99% in April.
But what does this mean for you and your household budget?
We'll explain exactly how much your council tax will increase and other important details you need to know.
How much will your council tax increase?
Council tax is going up for residents of 136 local authorities in England and Wales.
The 4.99% increase is the maximum increase that can be made without a local referendum, and millions of households will be affected.
The 5% increase equates to an additional £103.25 per year for a typical Band D property, which currently pays £2,065.
However, The Sun revealed earlier this month that certain areas have been given special permission to increase bills by 10%, meaning the same annual bill could rise by £206.50.
It is important to note that the exact amount you pay will also depend on the council tax “band” your property falls under.
Tires are based on the value of your home: the more expensive the home, the more municipal tax will be charged.
Why will council tax prices rise?
Council tax prices are rising as a result of the financial pressure local authorities are under.
Sam Corcoran, vice-chairman of the County Councils Network (CCN), said some councils have had to make some of their “toughest decisions” due to increased costs and spikes in demand for social care services.
He added that “provincial authorities face a budget deficit of £1.1 billion over the next two years”.
Some municipalities are in such a desperate situation that they have been approved for additional increases above 4.99%.
Councils in Thurrock, Woking, Slough and Birmingham have all been given special permission to increase council tax even higher due to the state of their financial position.
Mr Corcoran added: “The next government must establish a long-term financing plan for councils while implementing a comprehensive reform program to help reduce costs, especially for children's services and home-to-school transport.”
What do you pay your municipal tax for?
Council tax pays for local services such as schools, waste and recycling collection and street repairs.
Costs can vary dramatically depending on which municipality you fall under, with residents in some areas paying twice as much annually as other households.
The money will help fund not only local services, but also police and fire services and funding for special projects.
The maintenance of public services such as libraries and also educational services is also funded by council tax.
How to find out your council tax band
Council tax bands are based on the value of your property.
Band A represents the house with the lowest value, while band H in England and Scotland and band I in Wales represents the highest value.
You can check your council tax band by entering your postcode on the government website.
Knowing this, you can calculate how much the increase will cost you.
You will receive a municipal tax assessment in April. This states how much you have to pay. It is good to have an idea in advance.
Households can choose to pay over ten months.
If you wish, you can also choose to pay in installments over 12 months.
This way you can be sure that you pay the correct municipal tax
You can check whether you are paying the correct amount by checking which band your home falls under.
If you think you are in the wrong band and paying too much, you can dispute your municipality's tax bracket.
The municipal tax brackets were created in 1991 based on the value of real estate. Based on current prices, many households may conclude that they should fall into a different bandwidth.
If you know which band your property falls under, you can see which other properties in your street also fall under.
If they are in a lower band than you, you can successfully challenge and lower yours.
In the meantime, we explain how you can reduce your municipal tax or even eliminate it altogether.