Elections to Magherafelt District Council were held on 20 May 1981 on the same day as the other Northern Irish local government elections.

The election used three district electoral areas to elect a total of 15 councillors.

Note: "Votes" are the first preference votes.

1977: 2 x SDLP, 2 x UUP, 1 x Republican Clubs 1981: 3 x SDLP, 1 x DUP, 1 x Independent Republican 1977-1981 Change: SDLP, DUP and Independent Republican gain from UUP (two seats) and Republican Clubs 1977: 1 x SDLP, 1 x UUP, 1 x DUP, 1 x UUUP, 1 x Independent Nationalist 1981: 1 x SDLP, 1 x UUP, 1 x DUP, 1 x UUUP, 1 x IIP 1977-1981 Change: IIP gain from Independent Nationalist 1977: 2 x DUP, 2 x SDLP, 1 x UUP 1981: 2 x DUP, 1 x SDLP, 1 x UUP, 1 x Independent Republican 1977-1981 Change: Independent Republican gain from SDLP