Council tax break for thousands as households skip payments in February and March - but there's one condition

Many households across England will get a break from paying council tax this month and next, simply because of how the system works something many people may not realise.

Council tax is charged for the full year from April to March, but most people pay it over ten monthly instalments by Direct Debit. That means no payments are usually taken in February and March.

There is one key condition, though. To qualify for this two-month break, residents must ensure their council tax account is fully up to date.

Anyone with unpaid arrears will still be asked to pay during this period.

The same applies to people who recently moved home and did not set up their council tax payments straight away, as any missed amounts may still be collected during these normally payment-free months.

For those living in an average Band D property, this means keeping an extra £228 in their pockets during both February and March. The typical annual charge for Band D stands at £2,280.

Leeds Council has confirmed that the 10-month payment structure remains the default option for residents.

As the council explains: "Council tax is usually calculated for a full year, starting in April and ending in March. When you pay by Direct Debit it is split into monthly payments."

The revenue collected through council tax supports a wide range of local authority services, from libraries and leisure facilities to refuse collection, social care provision and planning departments.

Residents in properties banded higher than D will see even more substantial reductions in their monthly outgoings during this two-month window. Those with Band E, F or G homes will retain significantly more of their income compared to typical months.

Council tax has been the primary method of funding local government services since 1993, when it replaced the Poll Tax.

For households struggling with payments, the Government permits spreading the annual charge across all twelve months instead.

Looking further ahead, significant changes to property taxation are on the horizon.

From April 2028, the Government intends to implement a High Value Council Tax Surcharge targeting homes valued at £2million or above.

The Valuation Office Agency will conduct a separate assessment exercise in 2026 to determine which properties fall within the new bands, starting at £2,500 annually for homes worth over £2million and rising to £7,500 for those exceeding £5million.

Zara Bray, mortgage expert at Quilter, cautioned that "bolting it onto an outdated system risks creating more complexity rather than delivering a coherent long-term solution."