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Council tax bands
100,000s are in too high a band - check if you're one of them
Reclaim overpaid council tax
Moved home since 1993? Check if you're owed £100+ back
How to claim the 'severely mentally impaired' council tax discount
You could be missing out on a discount of up to 100%
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Council tax discounts
Many are entitled to discounts that can help save £1,000s
Updated 24 March 2023
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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Who is responsible for paying council tax?
This section on liability is only for those living in England.
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Working out who, technically, is legally responsible for paying a household's council tax bill is more complicated than you might think – as we discovered when trying to answer this question.
For many households this likely won't be an issue as – regardless of the legal technicalities – you simply split the bill evenly between the adult occupants (or some variation on this). The intention of this chapter isn't to mess with that practical arrangement.
Rather, in the event there's a disagreement about who should be paying (or maybe you're just curious to know), there is a method to determine who should be footing the bill...
Familiarise yourself with the council tax 'hierarchy of liability'
Buried deep within the Local Government Finance Act 1992 is a section on council tax liability, which sets out who in a household is legally responsible for paying.
Known as the 'hierarchy of liability', this section specifies six kinds of person, each occupying a certain rung on the hierarchy. Where someone fits the criteria specified by the first rung, they will normally be responsible for paying the council tax bill.
If nobody is classified as fitting the first rung of liability, then responsibility passes to anybody on the second rung. Where nobody sits on the second rung, responsibility moves to anybody on the third rung, and so on.
The hierarchy of liability goes as follows:
1. Resident with a freehold interest
2. Resident with a leasehold interest
3. Resident with a statutory or secured tenancy
4. Resident with a contractual licence to live in the property
5. Resident
6. Owner of the propertyFor the purposes of council tax, a 'resident' is defined as somebody who is at least 18 years of age, and has his or her 'sole or main residence' in the relevant property.
Where two or more people occupy the same rung – for example, a household that consists of a couple who are both named on the tenancy agreement – responsibility for paying the bill is divided equally between them. This is known as being 'jointly and severally liable'.
Joint and several liability also applies to married and civil partner couples (and couples living together as if they were married or civil partnered) where one of the people is on a higher rung of the hierarchy than their partner.
There are some exceptions to the hierarchy
To add further complication to working out who's responsible for paying the council tax bill, there are some exceptions to the hierarchy of liability to consider. In brief:- Some households are exempt from paying council tax in the first place (meaning the hierarchy of liability is not applicable). This includes households which contain only full-time students or only people with SMIs – or a combination of both.
There's also an exception to the joint and several liability rule. In brief:- Joint liability doesn't apply to full-time students and people with SMIs. This means where a household is mixed, and includes at least one person who is a full-time student or somebody with an SMI, as well as another adult (or adults) who are on the same rung of liability, joint liability won't apply as per normal. In such a scenario, the student / person with an SMI would not be legally responsible for paying council tax, and the bill's liability would be jointly split between the remaining occupant or occupants.
Examples of council tax hierarchy in practice
As you might've gathered, working out who's legally liable to pay council tax can be complicated. To help, we've come up with nine different scenarios, split between three groups.
Households containing students
Scenario 1
Two tenants live in a flat they rent from a landlord. One of the tenants is a full-time student, the other a non-student.
Does the household get a discount? The household could qualify for a 25% single person discount off the total bill, as the full-time student is disregarded for council tax purposes.
Who's liable to pay the bill? While both occupants are on the same rung of liability (both named on a tenancy agreement), joint liability doesn't apply to students. This means the non-student is legally liable to pay the (reduced) bill.
Scenario 2
Three adults, one of whom is a full-time student, live in a house. The student owns the house (on a freehold basis), while the two non-students are named on a tenancy agreement.
Does the household get a discount? There is no discount in this case, as the full council tax bill applies where two or more adults (who don't otherwise qualify for a discount) live in a property.
Who's liable to pay the bill? In this case, the student is liable to foot the bill. That's because the student is the owner of the property (technically 'a resident with a freehold interest'), a higher rung on the hierarchy than the two tenants.
Scenario 3
Four adults, where two are full-time students and two qualify for the SMI discount, are tenants in a house. The landlord who owns the property lives elsewhere.
Does the household get a discount? The property pays no council tax at all. That's because all-student / all-SMI households (or a combination of both) are exempt from council tax.
Who's liable to pay the bill? The hierarchy of liability doesn't apply in this scenario, as no council tax is charged in the first place.
Households where someone is cared for Scenario 1
Married couple, John and Jenny, jointly own their leasehold house. They live with their 17-year-old daughter, Anna, and 23-year-old son, Grant, who qualifies for the SMI discount. Jenny spends 35 hours a week caring for Grant (so technically is his live-in carer).
Does the household get a discount? The property gets a 25% discount off the total bill. That's because:
- Anna is not considered for council tax purposes until she turns 18
- Grant is disregarded for council tax purposes because he qualifies for the SMI discount
- Jenny is disregarded for council tax purposes because she qualifies as a live-in carer.Essentially this means that there's only one adult, John, taken into consideration for the purpose of the council tax bill, so only 75% of the council tax bill applies.
Who's liable to pay the bill? As John and Jenny jointly own the property they live in (technically they're both 'resident with a leasehold interest'), they're on the same rung of hierarchy and liability for paying the discounted council tax bill is split jointly between them.
Scenario 2
Louise, 45, lives with her elderly disabled mother (the disability is not an SMI). Louise owns the property freehold, and provides care for her mother for 40 hours a week, while her mother receives a qualifying benefit.
Does the household get a discount? The property gets a 25% discount off the total bill. That's because Louise, who qualifies as a live-in carer, is disregarded for council tax purposes. This means there's only considered to be one adult in the property for council tax purposes – Louise's mum.
Who's liable to pay the bill? As Louise is the owner of the freehold property (technically 'resident with a freehold interest'), she is on a higher rung of hierarchy than her mother (presumably 'resident' or tenant of some kind). Therefore, Louise is liable to pay the discounted council tax bill herself.
Scenario 3
Matthew, who qualifies for an SMI discount, lives in his own home. Through Matthew's son, Sean, who has lasting powers of attorney, Sarah (Matthew's niece) has agreed to care for Matthew, and she has entered a contract for her to live in Matthew's home as a lodger with full board as well as expenses paid, in exchange for her providing Matthew with 40+ hours of personal care per week (technically she'll be a live-in carer, not a paid care worker).
Does the household get a discount? A 50% discount applies here as there are considered to be no adults in the property for the purposes of council tax (Matthew is disregarded because he qualifies for an SMI discount, Sarah is disregarded because she qualifies for a live-in carer discount). The property doesn't get the whole bill wiped, however, as the property is not considered to be exempt from council tax (only properties that only contain full-time students or only people with SMIs – or a mixture of both – can be exempt).
Who's liable to pay the bill? As Matthew is on a higher rung of the hierarchy (resident with a freehold / leasehold interest) – a higher run than Sarah – Matthews is legally liable to pay the discounted council tax bill. Sean, as Matthew's power of attorney, will assume responsibility for paying the bill.
Scenario 4
Patrick owns his house and has a disability for which he receives a qualifying benefit (his disability is not an SMI). He lives with his two adult children, Rosie and Stuart. Rosie spends 40 hours a week caring for Patrick, but Stuart doesn't.
Does the household get a discount? In this case, the household is not due any discount and the full bill is due. That's because, while Rosie is disregarded for council tax purposes (as she qualifies as a live-in carer), there are two other adults in the property – Stuart and Patrick – who aren't disregarded as they don't qualify for any discount.
Who's liable to pay the bill? As Patrick is the owner of the property and on a higher rung of liability than his children (presumably some form of lesser 'resident'), Patrick is liable to pay the bill himself.
Households on low incomes
Scenario 1
Joanna rents her council house that she lives in with her three young children. She is unemployed and claims benefits. Her partner, Greg, moved in recently. He pays rent, but isn't an official tenant. He's also unemployed and claims benefits.
Does the household get a discount? The household could be due a reduction of up to 100% off the bill, as both Joanna and Greg have low/no incomes. How big a discount they get will depend on the council.
Who's liable to pay the bill? As Joanna is on the tenancy agreement but Greg isn't, she is on a higher rung of the hierarchy. However, for council tax purposes, joint and several liability applies where a couple are living together as if married – even if one is on a higher rung of the hierarchy. This means that liability for the bill will be split between Joanna and Greg, unless, of course, a 100% discount is awarded, in which case there's no council tax to pay anyway.
Scenario 2
Carole owns her house and is recently retired. She's got plenty of savings, and to supplement her income, has three working adult lodgers who all pay rent.
Does the household get a discount? In this case the full council tax bill is due as there are four adults in the property considered for council tax purposes, none of whom is eligible for a discount.
Who's liable to pay the bill? As owner of the property, Carole is on a higher rung of the hierarchy than the three lodgers. She is therefore legally liable to pay the full council tax bill herself.
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