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What is Council tax for landlords?
Last verified 31 October 2026
Council tax for landlords is the question of who is liable for the bill on a let home and how a bill the landlord pays is treated for tax. In a normal let of a whole property the tenant, as the resident, is liable; the landlord is liable only where no one is resident.
Why it matters to landlords
The Local Government Finance Act 1992 lists who is liable in order: resident owners first, then resident leaseholders, tenants, licensees and any other resident, with the owner of the dwelling last. People in the same category are jointly and severally liable. GOV.UK says you will usually have to pay council tax on an empty home, though your council can offer a discount and decides the amount. A household made up only of full-time students does not have to pay.
If you pay a bill yourself, such as during a gap between tenants or where the tenancy terms say you do, HMRC lists council tax among the costs you can deduct when you pay them yourself. The empty homes premium is an extra charge that only applies in England. Check your council's rules on empty property discounts, because they differ by area.
Example
Sam's three-bed house is empty for 21 days between tenants. The annual bill is £1,800, so those days cost about £104, assuming his council gives no discount. He pays it himself and records it as an allowable expense in that quarter.
Allowable Expenses for Landlords (2026) →