The Suffolk district said the move across all tax bands had been made possible by careful financial management before the economic downturn.
St Edmundsbury BC leader John Griffiths (Con) asked staff to do everything possible to deliver the freeze without any reduction in services.
Cllr Griffiths said: “We want to help hard-pressed council tax payers in these very difficult times and believe that the simplest and most effective way we can reach the maximum number of residents is to ensure that every household in the borough pays no more than they did a year ago.”
St Edmundsbury accounts for only a relatively small part of local residents’ council tax.
The council is now urging other local councils - including Suffolk CC, which is responsible for up 80% of residents’ bills - to freeze their share of council tax.