Rates vs Council Tax Northern Ireland — Complete Guide

Northern Ireland uses domestic rates instead of Council Tax. Here’s how the system works.

Rates vs Council Tax

Key Differences

Feature	NI Rates	Council Tax (Rest of UK)
Based on	Capital value	Property band
Valuation date	1 January 2005	1991 (England/Scotland)
Banding	None — actual value	Bands A-H
Who sets	Regional + District	Local council
Average bill	~£1,300-1,500	~£1,900

How Rates Work

Component	Who Sets	What It Funds
Regional rate	NI Executive	Education, health, roads
District rate	Local council	Local services
Total rate	Both combined	Your bill

Calculating Your Rates Bill

The Formula

Calculation
Capital Value	×
Rate in Pound	=
Annual Rates Bill

Example Calculation

Property: Capital Value £150,000
Regional rate (2025/26): 0.4852p
District rate: varies (e.g., 0.3500p)
Combined rate: 0.8352p
× Capital value: 150,000
Annual bill: £1,252.80

Rate in the Pound by Council (2025/26 approx)

Council Area	District Rate	Total Rate (with Regional)
Belfast	~0.38p	~0.87p
Lisburn & Castlereagh	~0.30p	~0.79p
Derry & Strabane	~0.39p	~0.88p
Newry, Mourne & Down	~0.36p	~0.85p
Armagh, Banbridge & Craigavon	~0.34p	~0.83p
Mid Ulster	~0.28p	~0.77p
Fermanagh & Omagh	~0.33p	~0.82p
Antrim & Newtownabbey	~0.32p	~0.81p
Ards & North Down	~0.31p	~0.80p
Mid & East Antrim	~0.33p	~0.82p
Causeway Coast & Glens	~0.34p	~0.83p

*Rates vary yearly — check LPS for current figures

Sample Bills by Property Value

Capital Value	Low Area (~0.77p)	High Area (~0.88p)
£75,000	£578	£660
£100,000	£770	£880
£150,000	£1,155	£1,320
£200,000	£1,540	£1,760
£250,000	£1,925	£2,200
£300,000	£2,310	£2,640

Capital Values

What They’re Based On

Factor	Detail
Valuation date	1 January 2005
Market value	What property would sell for
Current state	As at 2005
Improvements since	Don’t change value

Finding Your Capital Value

Method	How
On your rates bill	Listed clearly
LPS website	Valuation list search
Search by address	Online tool

Appealing Your Valuation

You Can Appeal If	Process
Value is factually wrong	Apply to LPS
Property significantly different	Evidence needed
Comparable properties lower	Show examples
Rare	Values seldom changed

Rate Relief and Discounts

Owner Occupier Reliefs

Relief	Amount
Lone Pensioner Allowance	20% off
Disabled Person’s Allowance	25% off
Low Income Rate Relief	Up to 100%

Lone Pensioner Allowance

Eligibility
Age	70 or over
Living	Alone (or with qualifying people)
Property	Main or only home
Discount	20%

Disabled Person’s Allowance

Eligibility
Disability	Substantially and permanently disabled
Adaptation	Property has essential features
Features	Extra room, wheelchair access etc
Discount	25%

Low Income Rate Relief

Your Circumstances	Relief Available
On benefits	Up to 100%
Low income	Partial relief
Savings limit	Applies
Apply to	Housing Executive

Vacant Properties

Empty Homes

Situation	Rates Due
Furnished empty	Full rates
Unfurnished	Possible exemption up to 12 months
Uninhabitable	Possible exemption
Long-term vacant	May apply for exemption

Exemptions

Property Type	Exemption
New build (unsold)	Up to 12 months
Deceased owner’s estate	Some exemption
Undergoing renovation	Possible
Charity property	Possible

Paying Your Rates

Payment Options

Method	Details
Direct Debit	Spread over year
Monthly	10 instalments
Lump sum	Pay in full
Online	LPS website

Payment Dates

Payment Type	When
Direct Debit monthly	15th of month
Single payment	1 October or within 14 days of bill
Instalment dates	Set dates through year

Help if Struggling

Option	Details
Payment arrangement	Contact LPS early
Low income relief	Apply
Money advice	Free services available
Don’t ignore	Debt can escalate

Renting in Northern Ireland

Who Pays?

Situation	Who Pays
Tenant (usually)	If lease says so
Landlord	Some include in rent
Check lease	It should state clearly

Rate Rebate for Tenants

If Renting	Available
Low income tenants	Can claim rate rebate
Housing Executive tenants	Included in rent calculations
Private tenants	Apply through Housing Executive

Business Rates

Non-Domestic Rates

For Businesses	Different System
Based on	Net Annual Value (NAV)
Revaluation	More regular
Small Business Relief	Available
Contact	LPS for details

Finding Help

Contact Details

Service	Contact
Land & Property Services	0300 200 7801
LPS website	finance-ni.gov.uk
Housing Executive	nihe.gov.uk
Advice NI	adviceni.net

Useful Resources

Resource	For
LPS online calculator	Estimate your bill
Valuation list	Check your capital value
Rates relief info	Application forms
Council websites	Local rate information

Summary

How It Works

Step	Detail
1	Capital value set (2005)
2	Multiplied by rate in pound
3	= Your annual rates bill
4	Regional + District combined

Key Differences from Council Tax

NI Rates	Council Tax
Capital value based	Band based
2005 values	1991 values
Generally lower	Generally higher
Single payer	Various discounts

Getting Help

Need	Where
Bill enquiry	LPS
Payment difficulty	LPS payment team
Relief application	Housing Executive
Appeals	LPS Commissioner

Checklist for New NI Residents

Action	Done?
Find property capital value	☐
Check your council area’s rate	☐
Calculate expected bill	☐
Check relief eligibility	☐
Set up payment method	☐