

Council tax discounts
Many are entitled to discounts that can help save £1,000s
Many people are eligible for a council tax discount or reduction of between 25% and 100%, saving £100s – or even £1,000s – each year. Those living alone or only with children, people on a low income or in full-time education, those with a carer or a specific medical diagnosis, and even people with empty properties are among those who could cut their bill. Read on to see who's eligible, how much you might save and how to apply.
With thanks to Gary Watson, deputy chief executive at the Institute of Revenues Rating and Valuation, for his contribution to this guide.
Other MSE council tax guides...
- Check your council tax band are you paying too much?
- Reclaim overpayments if you've moved since 1993
- 'Severely mentally impaired' discount check if you qualify

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Who can get money off their council tax bill?
There are all sorts of reasons you might qualify for a lower council tax bill. This could be based on the people who live in your home, your income or the type of property you live in. To get you started, we've a handy graphic of who might qualify for a reduced bill.
Note: 'SMI' refers to a adult who is considered to be 'severely mentally impaired' – a horrid term, so we'll use 'SMI' or 'SMI adult' in this guide.
This might not be an exhaustive list of every household combination, but it should give you a good idea of whether your household is likely to be entitled to a discount. And aside from your the people that make up your household, there are also a host of other reasons you might be able to get money off your council tax bill, such as if:
- You're on a low income or receiving benefits / universal credit
- You're receiving pension credit
- You live in a property that's been renovated for a disabled person
Discounts and reductions are also possible for a number of other reasons related to the kind of property you live in (such as empty homes or those with an annexe).
For any type of discount or reduction, you'll need to apply to get it. Below we explain more about the types of discounts and reductions available.
Discounts based on who you are
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You can claim the single person discount if you're an adult and live alone, or if you're the only adult in your household (for example, living with under-18s).
You can also claim if you only live with adults who are disregarded from council tax (for example, you're a non-student who lives with full-time students).
Hosting a Ukrainian refugee?
Ukrainian refugees are disregarded for council tax. If you host a Ukrainian refugee in your home as part of the Homes for Ukraine scheme, it won't affect any discounts or reductions you're already entitled to. So if you qualify for the single person discount, this entitlement will not be impacted.
I bought my first home in 2017 and didn't realise I was entitled to the single person discount until you alerted me to it. Subsequently, I submitted a refund request to my local council covering the last six years of payments and have received a whopping £1,749 refund. This discount will really make a difference on my monthly bills going forward too.
James, via email
You're considered to be 'severely mentally impaired' (SMI) – up to 100% discount
If you have what is classed as a 'severe mental impairment' (which we refer to as an SMI adult), you're disregarded for council tax purposes (meaning you don't have to pay). For example, this could include those who have Alzheimer's, Parkinson's, profound learning difficulties or who have had a severe stroke.
To qualify, you’ll need to be both medically certified as having an SMI, and be receiving at least one of a number of benefits (in Scotland, being eligible for the benefit even if you don't actually claim it is sometimes enough).
The discount can vary, depending on who else lives in the same household. The situation is complex and some council staff may not have heard of the SMI discount, so we have a special How to claim the 'SMI' council tax discount guide to take you through it step-by-step.
Also see our Disability money matters MSE Forum board to see other people's experience of claiming the SMI discount.
Live-in carers are disregarded from council tax. To be disregarded, you must look after someone with a disability who isn't your partner, spouse or child under 18, for an average of at least 35 hours a week – looking after a mother, father, brother, sister, niece, nephew, friend, uncle or aunt DOES count.
As the carer, you must live with the person with the disability, and the person cared for must be getting one of the following benefits:
- Attendance allowance.
- Middle or higher rate of the care component of disability living allowance.
- Standard or enhanced rate of the daily living component of personal independence payment.
- An increase in constant attendance allowance.
- An increase in disablement pension.
As a live-in carer you do NOT need to be receiving carer's allowance to qualify for this council tax discount. Please note that more than one person in a household can qualify as a live-in carer, so long each fits the qualifying criteria above.
The discount can vary, depending on who else lives in the same household:
- If the household is just the live-in carer(s) and an eligible adult they care for, a 25% council tax reduction can be applied to the household.
- If the live-in carer(s) cares for an SMI adult, the reduction is 50%.
- If the live-in carer(s) cares for someone who doesn't have an SMI, and one or more other adults – none of whom are disregarded for council tax – also live in the same property, then the full council tax bill is due.
I made an application for a discount for my dad's council tax due to his dementia, and received four years of refunds. And last week the council emailed me because, as his live-in carer, we are eligible for a further 25% discount, and they have backdated the refund several years too.
John, via email
You're a full-time student – up to 100% discount
If a household has only full-time students in it (including one student living alone) then there is no council tax to pay, as all-student households are exempt from paying council tax. This applies even if there are eight of you as students.
To count as a full-time student, your course must last at least a year and involve at least 21 study hours a week.
Full-time student nurses can normally claim this discount too. Some councils also let part-time student nurses apply as well.
Certain apprenticeship schemes also count, as does getting funding from the Education and Skills Funding Agency (if you're under 25) and foreign language assistants registered with the British Council.
Having watched one of your TV programmes, I claimed for my three years of study. I wasn't expecting success, but the council cleared my remaining tax account for the year and reimbursed me £2,600+.
Patricia, via email
Reductions based on your income

You might also qualify for money off your council tax bill based on your household income.
Technically the below are referred to as council tax 'reductions' rather than discounts. Reductions differ to discounts in that each council operates its own reduction scheme, meaning the size of reduction you could get and the qualifying criteria can vary by local authority.
As reductions are different to discounts, it's sometimes possible to claim for a reduction on top of a discount. For example, one MoneySaver told us they they successfully claimed for a reduction based on having a low income in addition to claiming the single person's discount.
You're on a low income / benefits – up to 100% reduction
If you're on a low income or claim benefits, such as universal credit, your household may qualify for a council tax reduction. It doesn't matter if you own your own home or rent, or whether you're employed or not. Yet what you get depends on:
- Where you live
- Your circumstances (such as income, number of children, benefits, residency status)
- Your income, including savings, pensions and your partner's income
- If children live with you
- If other adults live with you.
When working out your income, councils in England can partly or fully disregard things like child maintenance, fostering payments and charity contributions – see your council's website for its full list. Disregarded income should also include any payments you get in relation to Windrush (such as the Windrush Compensation Scheme) and historic child sexual abuse.
Some MoneySavers have told us they've been able to get the 25% single person discount in addition to reductions / support awarded on the basis of being on a low household income (though you couldn't combine if your bill has already been wiped by 100%).
You're receiving pension credit – up to 100% discount
If you or your partner are getting the 'guaranteed' part of pension credit, your household could be eligible for a full reduction on your council tax bill.
If you get the 'savings' part of pension credit, then you might also be eligible for a reduction on your council tax, though this won't be a full reduction and how much you'll get will depend on how much you have in savings.
Where you live with any adults who aren't dependent on you, then the reduction might also be less.
If you or your partner are getting the 'guaranteed' part of pension credit, your household could be eligible for a full reduction on your council tax bill.
If you get the 'savings' part of pension credit, then you might also be eligible for a reduction on your council tax, though this won't be a full reduction and how much you'll get will depend on how much you have in savings.
Where you live with any adults who aren't dependent on you, then the reduction might also be less.
Some time ago you mentioned about claiming for pension credit. I own my home, no mortgage, I have savings and Premium Bonds. I really didn't think I would get anything. I did, backdated, and also will not have to pay council tax. Many thanks, Martin x
Susan, via email
Discounts and reductions based on your property

Discounts might be available if your home has been adapted for a disabled person. This could include:
- An extra bathroom or kitchen for a disabled person to use.
- A room that's 'predominantly' used by a disabled person. For example, this could be a downstairs room in a two-storey house that has been turned into an accessible bedroom. Or a room that has been adapted specifically for a disabled person to use.
- The creation of sufficient floor space to make the home accessible for someone who uses a wheelchair.
If you can demonstrate that this renovation was carried out for a disabled person, your council tax band will be dropped. How much you save each year will therefore depend on the area you live in.
Where your property is already in band A (the lowest council tax band) and you qualify for this discount, your council tax bill will be reduced by 17% instead.
After you mentioned disability rates relief I emailed my local council, and they sent me a form to complete. Three weeks later I was informed that my band had been reduced from E to a D, saving me over £400/yr going forward. Not only that, the discount was backdated to the time I came out of rehab following an above-the-knee leg amputation, meaning an extra pay-out of £1,500. Thank you so very much, I wouldn't have known about this reduction otherwise.
John, via email
For unoccupied properties which are undergoing MAJOR repair work or structural alterations to make them habitable, you may be able to claim a council tax exemption.
If your property fits the category above, you will be exempt from council tax for up to 12 months.
There are some instances where you don't have to pay any council tax on an empty home. These include:
- You're a long-term resident of a care home or hospital. Here you don't need to pay any council tax on your home, unless you're only in hospital or a home for a short time – recovering from an accident, for example – in which case you'll need to pay council tax as normal.
- You're in prison. If the property's now empty, you do not need to pay council tax on it (unless you're in prison for not paying council tax).
- The owner of the property has died. If the home's empty, it's exempt from council tax until someone new moves in, or probate is granted. If probate has been granted and the home is still empty and hasn't been sold, it will be exempt from council tax for a further six months. If it's still empty and unsold after six months, the executor will be responsible for paying council tax from the estate.
If you've inherited a house from someone who's died, you're responsible for paying council tax once the transfer has been completed.
Hosting Ukrainian refugee(s)?
If you're hosting Ukrainian refugee(s) under the Homes for Ukraine scheme in a property that would otherwise be empty and liable for full council tax, you can qualify for a 50% council tax discount on that property.
Quick questions
If your home has an annexe (informally known as a 'granny annexe') or similar extension, you might get a discount provided it's in use as a residence or used by the main homeowner.
An annexe is typically described as a self-contained and separate living area from your main home, though your council will have to decide whether or not it qualifies as an annexe.
If you qualify as having an annexe, you will receive two council tax bills – one for the annexe and a separate one for the rest of your home. You're entitled to a discount of 50% on the annexe's council tax bill, but you'll still pay council tax as normal on the main house.
If you have to live in a second property for your job, for example, you live there during the week, or own a holiday home, some councils will give you a reduction. This does not include buy-to-let properties.
Councils can give a discount of up to 50%, but it's up to the council to decide both if it'll offer the discount in the first place and how much it will be.
Hosting Ukrainian refugee(s)?
If you're hosting Ukrainian refugee(s) under the Homes for Ukraine scheme in a property that isn't you main residence, you can qualify for a 50% council tax discount on that property.
Entitled to a discount or reduction? You need to apply to get it
As mentioned above, discounts and reductions can be worth £100s off your council tax bill each month. You might even be able to backdate too, though councils set their own rules regarding backdating – so if they do allow it, you'll normally need to explain why you hadn't claimed before.
However, the important thing to remember if you believe you're eligible for a discount or reduction is that YOU MUST APPLY as it won't happen automatically.
- Those in England / Wales. Visit the Gov.uk to find your council's details.
- Those in Scotland. Visit the Mygov.scot website to find your council's details.
Depending on what kind of discount or reduction you are applying for, you'll likely be asked to provide evidence to support your claim. For example, if you're claiming a reduction based on having a low household income, you might be asked to provide evidence of your identity, rent or mortgage payments, income and savings.
Where your application is successful but your circumstances later change, do inform your local council as it may mean you're no longer eligible for a reduced bill.
Q&A: Council tax
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