"There are multiple facets to how councils formulate how much council tax to charge residents, circling around other revenue incomes for the council."
But depending on where you live & property size, the amount you pay varies. So where are people paying the highest & lowest council tax amounts across the country?
Westminster, which has some of the most expensive properties in the country, sees its residents paying the lowest council tax compared to anywhere else.
The average property price in Westminster is over £1,000,000 and has an average council tax bill of just £828 a year.
Likewise Wandsworth, which saw average sale prices of property hit £956,541 in 2020, sees residents only pay £845 per year for council tax.
So why do these expensive to live in areas result in residents paying so little in council tax?
Raj Dosanjh, founder of Rentround.com, commented: "There are multiple facets to how councils formulate how much council tax to charge residents, circling around other revenue incomes for the council.
"Westminster for example has an abundance of income from business rates. Due to the busy highstreets in the area, Westminster generated £2bn in business rates in 2019, 25% of London's £8 billion total.
"In addition, parking is a major factor that determines council tax rates in Westminster. On-street parking charges in Westminster range from £1.70 to £4.90 per hour. Westminster made the most from parking tickets and fines in the entire UK, with £78 million in profits pre covid years.
"Finally the expenses of the council play a major role in the council tax levels. Westminster has less social care expenses than outer areas (which have more older people and families), less expense means less needs to be raised."
