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Douglas Borough Council says "pay your rates now and you will get a five per cent discount".
Ratepayers in the Island’s capital will benefit from the reduction if they pay the sum owed in full by June 30.
At present, just under 3,500 people pay by direct debit, with a quarter of those benefiting from discount.
In a statement, the corporation says 0.3 per cent of rates for the last municipal year were still owed at the end of March.
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