How to get a council tax reduction
Council taxes have risen and are predicted to go even higher. But thousands of people could be eligible for little-known reductions. We explain who can possibly get hundreds off their yearly bill.
Laura Miller
Households across the country were subject to another council tax hike in April, and further increases are expected. But many people could be missing out on valuable discounts that would save them big sums every year.
The average Band D council tax – the middle of the range – set by local authorities in England for 2026/27 was £2,392. This is an increase of £111 or 4.9% on the 2025/26 figure.
Council tax bills in some parts of the UK could rise by as much as £500 by 2029/30, analysis of government plans suggest.
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But some people could be eligible for discounts ranging from 25% to 100%,depending on their circumstances. Here’s what you need to know about getting a council tax reduction, what you can apply for, and how much you can expect to save.
Can I get a council tax reduction?
Council tax pays for services such as rubbish collections or your local library, and in 2022, local authorities were granted powers to raise the rates they charge residents by up to 5%.
However, debt charity Turn2Us has previously warned that millions of households could be missing out on discounts on their bills they are legitimately entitled to.
Here are some of the discounts you could be entitled to and how to apply.
Council tax discounts for disabled people
You might be able to apply for a council tax discount – or not have to pay at all – if you or someone you live with is disabled. For example, you may be eligible for the Disabled Band Reduction Scheme if you live in a larger property than you would need if you or someone else living there were not disabled.
For those eligible under the scheme, the savings can be significant. Your bill will be reduced to the next lowest council tax band. For example, if your property is in Band D, you’ll pay the Band C rate. If your home is already in the lowest band (Band A), you’ll get a 17% discount on your council tax bill instead.
Factors that can mean you qualify for the scheme include having either an extra bathroom, kitchen or other room that you need for the disabled person, or extra space inside the property for using a wheelchair.
To get the discount the property must be the main home of at least one disabled person (an adult or a child) – and it does not have to be the person responsible for paying the council tax.
See if you qualify for the Disabled Band Reduction Scheme.
Discounts for people with Alzheimer’s and dementia
You might be able to apply for a discount on your council tax bill if you or someone you live with is severely mentally impaired. This includes people who have conditions like dementia, Alzheimer's, or severe learning difficulties.
To qualify for a council tax discount on these grounds you’ll need to get a certificate to say you’re severely mentally impaired from a medical professional, such as your GP.
You’ll also have to prove your eligibility for certain benefits (you can do this by checking with your local council).
People deemed severely mentally impaired get a 100% discount on their council tax as long as they live on their own or any other adults in their household either qualify as severely mentally impaired or are full-time students.
There’ll be a 50% discount on the council tax bill if everyone else in your household is ‘disregarded’ – a disregarded person for council tax purposes is someone who lives in your home but is not counted when your local council calculates the number of adults in the property.
You’ll get a 25% discount if you live with someone who qualifies as severely mentally impaired and either there are no other adults in your household or everyone else in your home is disregarded.
Check your council tax band
A property’s council tax band is set by the government’s Valuation Office Agency (VOA) based on how much it was worth on 1 April 1991 for England and Scotland, and 1 April 2003 for Wales.
Bands range from A, the cheapest, to the more expensive H category and are based on factors such as the property’s character, layout, location and size.
But your home’s band may have changed since 1991 and could even have been valued incorrectly in the first place.
. See our article on how to check your council tax band.
One of the best ways to check if you are in the correct council tax band is to see what your neighbours are paying.
It may be a tricky question to ask, but you can check yours and other council tax bands online by entering an address and postcode the Gov.uk,
You should be in the same band as homes of a similar size, style and age.
It may be worth challenging your council tax band and applying for a reduction through the VOA if you find it is different from your neighbours’.
You will need to provide addresses of five similar properties in a lower tax band to yours and house price evidence to show what your property was worth between April 1989 and March 1993 in England, and April 2001 and March 2005 in Wales.
House price data can be found using the Land Registry or sources such as the Nationwide House Price Index.
But be careful, as if the VOA finds you should be paying more it could increase the council tax bill for your property and those in the same street.
If you are in the correct band, you may still be eligible for a council tax reduction.
Single person discount
An adult living on their own can get a 25% council tax discount.
The discount also applies if certain people you live with are “disregarded” or exempt by local authorities when working out the bill.
This includes under-18s living with you, or someone in education or training, such as a university student.
A council tax bill can also be reduced by 50% if everyone living in a property is disregarded.
This includes members of the armed forces and people living in care homes.
Do students pay council tax?
Households, where everyone is a full-time student at university or college, don’t have to pay any council tax.
To count as a full-time student, you must be on your course for at least one year and be studying for at least 21 hours a week.
If you’re studying for a qualification up to A level and you’re under 20, your course must last at least three months and involve at least 12 hours of study a week.
How much council tax discount can retirees get?
Once you pass the state retirement age, those claiming the guarantee element of Pension Credit may get a full council tax discount.
This will only apply if you don’t live with someone who is eligible for council tax.
If you don’t get the guarantee credit but have a low income and less than £16,000 in savings, you may still be eligible for support.
Empty homes and council tax payments
Council tax rules on empty properties differ depending on what is happening with the home. Local councils in England and Wales have the discretion to set their own discounts and exemptions, so rates vary by area.
Local authorities can give a discount of up to 100% on an empty property, for example, but after an extended period of time they can add a premium instead.
Councils are able to choose the level of the premium. For example, they may apply a 50% premium for dwellings empty between one and two years and a premium of 100% of dwellings empty for two to five years.
There is no premium to pay if the empty property is an annex.
You may get a full exemption if you are carrying out major home improvements on an empty property or building a new one.
There is also a council tax exemption on an empty property if you are selling it on behalf of an owner who has died. Councils won’t send a bill until you get probate, plus you may get a further six-month exemption after that if the property remains empty and in the name of the person who died.
This can be helpful if you are facing delays in selling the property.
Second homes and council tax discounts
Second homeowners will need to pay council tax on the property. Some local authorities may offer a discount at their own discretion if no one lives there permanently, though increasingly this has moved in the opposite direction – with second home owners paying a premium in council tax – as councils seek to free up homes for locals.
How to apply for a council tax discount
Your local authority may not automatically know you are eligible for a council tax discount.
You will need to contact your local authority directly to explain the exemption you qualify for and evidence may be required.
Enter your postcode on the Gov.uk website to find details of your local authority.
It must decide within two months after making an application if you are eligible for a reduction.
You can appeal to the Valuation Tribunal Service if you are unhappy with the decision.
