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Eligible households, who pay council tax by direct debit, will see £150 go directly into their bank accounts from April. Those who don't pay by direct debit will be contacted by the council and invited to make a claim.
Properties in council tax bands A-D are eligible for the rebate. In North Somerset the funding applies to 76,656 homes, giving a total of £11.5m available.
Cllr Ash Cartman, the council's executive member for corporate services, said: "Households in council tax bands A-D - about three-quarters of homes locally - will automatically get the £150 rebate paid into their account if they're paying council tax by direct debit. These payments will be made in April. This is the easiest and quickest way for people to receive the payment.
"Anyone in bands A-D not paying by direct debit will then be contacted by the council and arrangements put in place so payment can be made."
Direct debit payments can be set up through the council's website at www.n-somerset.gov.uk/counciltax. The website also has a link to check households' council tax bands for anyone unsure which band their property is in.
There will also be an opportunity to set up direct debits when the council tax bills are sent to households in March.