Council tax is regressive, according to a study by the Institute for Fiscal Studies.
The institute found that, even after accounting for council tax support, the poorest tenth of the population pay 8% of their income in council tax, while the next 50% pay 4-5% and the richest 40% pay 2-3%.
The report said that although overall taxes reduce inequality, “council tax is clearly regressive, income tax and NICs are significantly progressive, and we should probably think of indirect taxes as being broadly distributionally neutral”.
