If you move to Northern Ireland from Great Britain, one of the first financial surprises is the absence of council tax. Instead, Northern Ireland uses a domestic rates system — a property tax based on capital value rather than an administratively assigned band. Here’s how it works.
How NI Domestic Rates Differ From Council Tax
| Feature | NI Domestic Rates | GB Council Tax |
|---|---|---|
| Administered by | Land and Property Services (LPS) | Local councils |
| Basis of assessment | Capital value (open market, 2005 prices) | Property band (1991 or 2003 values) |
| Components | Regional Rate + District Rate | Single council tax (includes precepts) |
| Bands | None — continuous scale based on value | Fixed bands (A–H in England; A–I in Wales) |
| Adjustment for occupants | Not directly (but exemptions exist) | 25% discount for single occupants |
| Reduction scheme | Rate Rebate | Council Tax Reduction |
The Two Components of Your Rates Bill
Your annual rates bill in NI = (Capital Value) × (Regional Rate Poundage + District Rate Poundage)
Regional Rate: Set by the NI Executive annually — applies across all of Northern Ireland.
District Rate: Set by each of Northern Ireland’s 11 district councils — varies by area.
2026-27 rates (indicative):
| Component | Approx 2026-27 poundage |
|---|---|
| Regional Rate (owner-occupied) | 0.4163p per £1 of capital value |
| District Rate (varies by council) | 0.27p–0.37p per £1 of capital value |
(Check LPS or your district council for confirmed 2026-27 rates)
How to Calculate Your Rates Bill
Formula: Annual rates = Capital Value × (Regional Rate + District Rate)
Example 1: £150,000 property, Belfast area
- Capital value: £150,000
- Regional rate: 0.4163p per £ = £150,000 × 0.004163 = £624.45
- District rate (Belfast ~0.35p): £150,000 × 0.0035 = £525
- Total annual rates: £1,149.45
Example 2: £250,000 property, Antrim and Newtownabbey
- Capital value: £250,000
- Regional rate: £250,000 × 0.004163 = £1,040.75
- District rate (~0.30p): £250,000 × 0.003 = £750
- Total annual rates: £1,790.75
Example 3: £90,000 flat, Strabane/Derry
- Capital value: £90,000
- Regional rate: £90,000 × 0.004163 = £374.67
- District rate (~0.37p): £90,000 × 0.0037 = £333
- Total annual rates: £707.67
Capital Values — How Your Property Is Assessed
Your property’s capital value for rates is set by LPS and based on the open market value as at 1 January 2005. This means:
- Properties are assessed at 2005 prices, not current values
- A property now worth £350,000 might have a 2005 capital value of £175,000 for rates purposes
- Capital values are available to check via the LPS portal online
If you think your capital value is wrong: You can propose an alteration to LPS. If LPS disagrees, you can appeal to the Valuation Tribunal. As with council tax band challenges — the tribunal can also raise your value, so research comparables first.
Paying Your Rates
Rates bills are sent by LPS in late February/early March for the coming rates year (April–March). You can pay:
- Monthly by direct debit (LPS splits the bill into 10 monthly payments, April–January)
- Lump sum by card, phone, or online
If you bought your property mid-year, LPS will send a pro-rata bill.
Rates for Renters — Who Pays?
In NI rental properties, rates liability depends on your tenancy agreement:
- Most private tenancies: Rates are included in the rent and paid by the landlord to LPS. You pay no separate rates bill.
- Some private tenancies: The landlord charges rates separately — check your agreement.
- Housing Executive (NIHE) properties: Rates are included in your rent — you pay nothing separately.
- Housing association properties: Varies — check with your landlord.