Croydon Council Tax Rates 2026/27: Bands, Increases, and Section 114 Context

Why Croydon's Council Tax Has Risen So Sharply

Croydon's council tax bills have increased by roughly 23% since 2023. The driver is the council's financial collapse: Croydon issued Section 114 notices in 2020 and 2022, which is the formal declaration that a council cannot balance its budget. It was the first London borough to do so in decades.

A Section 114 notice triggers emergency spending controls and a recovery plan agreed with central government commissioners. Part of that recovery means raising council tax by the maximum permitted each year. In 2023/24, the government authorised an exceptional 15% increase for Croydon. Subsequent years have seen increases at or near the statutory referendum cap of 4.99%.

The result is that a Band D property in Croydon costs £2,599.91 per year in 2026/27 (including the Greater London Authority precept), up from about £1,870 before the emergency increases began. For households on low or fixed incomes, the increase has pushed hundreds of pounds onto annual bills.

How a Council Tax Bill Breaks Down

Your bill is not one charge — it is several levied together:

Croydon Council's share covers local services: rubbish collection, social care, libraries, street maintenance, planning. This is the largest component and the part that has risen most sharply.

The GLA precept funds Transport for London, the Metropolitan Police, the London Fire Brigade, and the Mayor's Office. This is set by the Mayor of London and appears as a separate line on your bill.

Your property's council tax band (A through H) determines the ratio. Band D is the reference point; Band A pays two-thirds of the Band D charge, Band H pays twice it. Your band was set by the Valuation Office Agency based on what your property would have sold for on 1 April 1991.

What Council Tax Reduction Covers

Council Tax Reduction does not eliminate the increase — it discounts whatever the current charge is. If your Band D bill has risen from £1,870 to £2,300 and you receive a 75% discount, you pay 25% of £2,300 (about £575), not 25% of the old figure.

The income bands used by the scheme are indexed annually in line with the percentage increase in Croydon's council tax. This means the income thresholds move upward each year roughly in step with the bill increase, so the same household income produces the same discount percentage. You are not pushed into a lower discount band purely because the council raised the tax.

If You Cannot Afford the Remaining Amount

Even with Council Tax Reduction, the minimum payment for a standard working-age claimant is 25% of the Band D rate (capped) — roughly £650 per year on a Band D property. If that is unmanageable, you have two further options:

You can ask the council in writing to spread your payments across 12 monthly instalments instead of the default 10. This is a statutory right under Regulation 21(1A)–(1D) and Schedule 1, paragraph 2(3A), of the Council Tax (Administration and Enforcement) Regulations 1992, inserted by regulations 2(13)–(14) of the Council Tax (Administration and Enforcement) (Amendment) (No.2) (England) Regulations 2012 (SI 2012/3086) — you do not need to give a reason. Request it through the council's online portal. For a current-year bill, a revised notice issued by 15 April gives 12 instalments; if issued on or after 16 April, the number is the whole months remaining. You can request the 12-month schedule for the next year as well.

If you are in severe hardship, you can apply to Croydon's Council Tax Hardship Fund if you meet its separate eligibility conditions, including household income limits; single residents with no dependants are excluded.

The Croydon Council Tax Reduction guide covers the full application process and income band table, so you can work out exactly how much you would need to pay after the discount.

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