London’s most expensive borough pays 61% more in council tax than the cheapest

Living comfortably always comes at a price – especially when it comes to council tax.

A new study by specialist tax consultants at Tax Accountant has revealed London’s priciest council tax areas. Using historical council tax data from gov.uk, the study determined the areas of London where high property values and the demand for top-tier services contribute to steeper bills.

According to government figures, the average council tax per dwelling will be £1,668 in 2024-25, an increase of 5.7% over 2023-24. This figure is lower than almost half of London boroughs studied.

Richmond-upon-Thames has the highest council tax rate in London, with an average of £2,404.15 per dwelling. Richmond uses its high council tax to support community projects such as toilets available on the high street and safe access for pets in parks and green spaces.

Kingston-upon-Thames has the second-highest council tax rate in London, with an average of £2,295.87 per dwelling. Kingston’s expenditure has been used to upgrade access to electric vehicle charging points as well as constructing more council housing for residents.

Harrow places third, with an average council tax rate of £2,153.71 per dwelling. Improvements to adult social care and construction of new homes are some of the projects Harrow council is investing in.

Ranking fourth is Croydon, with an average council tax rate of £1,982.86 per dwelling. Most of Croydon’s expenditure is on adult social care, health, and children’s services. The council have also formed a transport plan and have approved the construction of new homes.

Barnet occupies fifth position, with an average council tax rate of £1,954.93 per dwelling. The council’s mission is to tackle inequality and improve access for vulnerable people. To do this, most of its spending goes towards adult care services.

Sutton places sixth, with an average council tax rate of £1,903.69 per dwelling. Sutton council has a high expenditure on housing and people that work in the public sector.

Havering ranks seventh, with an average council tax rate of £1,891.23 per dwelling. In total, Havering collects over £200 million from council tax. Around £21 per week per household goes towards adult social care and services for young people.

In eighth place is Bromley, with an average council tax rate of £1,884.70 per dwelling. Council tax provides 30% of funding to services in the borough.

Bexley ranks ninth, with an average council tax rate of £1,821.11 per dwelling. The council spends a large amount on community spaces, parks, and other public places.

Merton rounds out the top ten, with an average council tax rate of £1,810.37 per dwelling.

Aatif Malik, Director of Tax Accountant, said, “These findings highlight a clear trend: areas with higher council tax rates are predominantly affluent, with a strong correlation between property values and the cost of local services.

“In regions like Richmond-upon-Thames, Croydon, and Sutton, the elevated rates reflect the substantial investment required to maintain public services, infrastructure, and amenities that align with the expectations of their affluent populations.

“This study underscores the financial pressures on councils to balance service provision with rising costs in wealthier areas, where property values drive the tax base higher.”