A Berkshire council is running a prize draw offering to pay five winners' 2010/11 council tax bill.
Those registering for online billing in Windsor and Maidenhead by 14 January will be entered into the competition.
The authority, which will announce the winners on 21 January, said reducing the amount of paper bills and reminders will save it thousands of pounds.
It comes as the council faces a cut in its spending power by 1.06% in 2011/12 and 1.81% in 2012/13.
The figures were released by the government on Monday, although Windsor and Maidenhead council said it is still looking through the details and working out how its government settlement will be affected.
Councillor Liam Maxwell, member for policy and performance, said: "The more we can do to encourage residents to use online services the more we can reduce council running costs.
"For example, sending out paper bills and reminders for council tax costs the council £23,000-a-year.
"With 70% of our local residents having access to the internet, we want to encourage them to opt for electronic billing which would save thousands of pounds of council taxpayers' money."