How do Northern Ireland domestic rates work instead of council tax in 2026/27?

Full answer

Northern Ireland is the only UK nation that funds local services through domestic rates rather than council tax. Your bill is based on the capital value of your home — an individual assessment by Land & Property Services of what the property would have sold for on the open market on 1 January 2005 (not its current value). You can check your capital value on the LPS online valuation list. This contrasts with England, Scotland and Wales, where council tax uses broad valuation bands rather than a precise per-property figure. Scotland and Wales otherwise use council tax much like England; only NI uses rates. The annual rates bill is the capital value multiplied by the combined poundage (a rate in the pound). That poundage has two parts: the regional rate, set centrally by the NI Executive/Assembly to fund region-wide services, and the district rate, set by each of the eleven district councils for local services. Because district rates differ, identical homes in different council areas pay different amounts. Several reliefs and schemes reduce bills. The Rate Relief Scheme and Housing Benefit help low-income households; Lone Pensioner Allowance gives a 20% reduction to people aged 70 or over living alone; the Disabled Person's Allowance reduces bills by 25% where a property has been adapted for disability; and there is a Low Carbon Homes scheme. Empty homes and landlord-paid rates have their own rules. You can pay in a lump sum (often with a small discount for early annual payment) or spread it across the year by direct debit, and rates are billed by LPS rather than the council directly. If you think your capital value is wrong, you can apply to LPS for a review.

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