Birmingham has so many low value properties that householders in the city pay the least amount of council tax in the country.
New figures show that, although the rateable values of homes is one of the highest nationally, overall the amount paid is much lower.
The band D property council tax rate in Birmingham is £1,320 but the average actually paid per household is just £737 because the city has a high number of low-value properties, mainly bands A and B, and high levels of deprivation.
In neighbouring Sandwell, the band D rate is £1,337 but on average households pay just £709.
Meanwhile, the London Borough of Kensington and Chelsea can set a much lower tax rate of £1,078 for band D but rake in £1,181 per property because house prices are so high.
As a result, Birmingham raises about eight per cent of its income from council tax, against a national average of about 25 per cent.
Birmingham's Labour deputy leader Ian Ward says this clearly demonstrates why the Government cuts have such a disproportionate impact on the city council's finances.
He said: "We generate less income through the council tax than most other councils. We are therefore much more reliant on government grants than other areas so a cut has a greater impact here.
"It is because we have a lot more low-value housing. This is part of our argument with the Department for Communities and Local Government over fair funding.
"The Government cuts impact harder on an authority with a high number of low value properties and higher levels of deprivation.
"We have higher demands on our services like care for the elderly and child protection - these cuts leave us very little room for manoeuvre."
The band D rate is based on houses valued at between £68,001 and £88,000 in 1991.
In Birmingham, the vast majority of homes fall into a lower band because they were worth far less in 1991. That means the amount most people pay in council tax is far less than £1,320 too.
Neither does the band D figure take into account any help people might get in the form of council tax benefit or support.
In fact, the average actual amount paid per dwelling in Birmingham is £737, according to separate figures also published by the Department for Communities and Local Government.
That compares with £823 in Dudley or £1,181 in Kensington and Chelsea.
Sandwell's rate of £709 a year is the fifth lowest in the country after Wandsworth (£607), Manchester (£667), Hull (£679), and Westminster (£693).
The highest actual amounts paid per dwelling are all in affluent parts of the south of England.
In Elmbridge, Surrey, the average household pays £1,821 in council tax while in South Buckinghamshire the figure is £1,762. In the West Midlands, the highest per dwelling council tax bills are in Solihull at £1,105.
Walsall is second (£937), followed by Coventry (£862) and Wolverhampton (£861).
Additional research by David Ottewell