South Oxfordshire District Council has reduced its element of the council tax bill for the third year running.
In its budget for 2014/2015, district councillors have agreed to reduce the SODC element of the tax bill by 2.5 per cent.
It is the third year running the local authority has reduced council tax.
Already the 14th lowest district council tax in England, SODC's council tax charge is expected to be in the 10 lowest charging councils when residents start paying their bills next month.
Council leader Ann Ducker said: "We have reduced the council tax by 2.5 per cent, which is a reduction for the third consecutive year.
"There is also £1m in the grants budget and no cuts in services."
Conservative Mrs Ducker said earlier that the council was continuing to set lower council tax payments despite reductions in government funding.
She added that the council was always looking for ways to improve efficiency, stop waste and increase income, and that the council was run more like a business than a local authority.