Who has to pay council tax?

Ladder of liability

Legislation sets out who must pay council tax. Whoever falls highest on the 'ladder of liability' below is the person liable to pay the council tax. 

  1. A person who owns the house they live in (resident freeholder).
  2. A person who has a lease on the house they live in (resident leaseholder).
  3. A person who has a 'statutory or secure' tenancy on the house they live in, usually tenants of housing associations (resident with a statutory or secure tenancy).
  4. A person who has a tenancy agreement with a private landlord on the house they live in (resident with a contractual licence).
  5. A person who is living in a house with no formal legal right to do so, usually grown up children (resident).
  6. A person who has a legal right to occupy a property but does not do so (owner).

An owner is a person who has an interest in all or part of the property. An interest can be a freehold interest or a leasehold interest. For example:

  • freeholder
  • long leaseholders
  • housing association tenants
  • assured shorthold tenants

A resident is someone 18 years or older who has their sole or main residence at the property.