Council Tax Discounts & Exemptions: Complete Guide (2026/27)

person Single Person Discount (25% Off)

The single person discount is the most widely claimed council tax discount in the UK. If you are the only adult (aged 18 or over) living in your property, you're entitled to a 25% reduction on your council tax bill.

Who Qualifies?

• You live alone (no other adults aged 18+ in the property)
• You live with people who are "disregarded" for council tax purposes — this includes full-time students, people with severe mental impairment, live-in carers, and certain others
• You live with people under 18 (children don't count as adults for this purpose)

How Much Does It Save?

On an average Band D bill of £2,171 for 2026/27, the single person discount saves approximately £543 per year. For Band C, it saves around £483. That's money you shouldn't be leaving on the table.

How to Apply

• Contact your local council — most offer an online application form
• You'll need to confirm you're the only countable adult in the property
• The discount can be backdated, but each council has different policies on how far back
• You must tell the council if your circumstances change (e.g., another adult moves in)

school Student Exemption (Up to 100% Off)

Full-time students receive generous council tax treatment:

• All-student household — if everyone in the property is a full-time student, the property is 100% exempt from council tax
• Student living with one non-student — the non-student pays, but the student is "disregarded", so the non-student may get the 25% single person discount
• Student in halls of residence — halls are exempt, so students don't need to do anything

Who Counts as a "Full-Time Student"?

• University students on courses lasting at least one academic year, studying at least 21 hours per week
• College students on courses lasting at least one academic year and at least 12 weeks, studying at least 16 hours per week
• Student nurses, apprentices, and youth training scheme participants
• Foreign language assistants registered with the British Council

How to Apply

Get a council tax exemption certificate from your university or college (usually available through your student portal). Send this to your local council along with a request for student exemption. The exemption covers the academic year and any intervening vacation periods.

psychology Severe Mental Impairment (SMI) Disregard

This is one of the most under-claimed council tax discounts. A person with a severe mental impairment (SMI) can be "disregarded" for council tax purposes, meaning they're not counted when calculating the bill.

Who Qualifies?

A person qualifies for SMI disregard if they have a severe impairment of intelligence and social functioning (however caused) that appears to be permanent, AND they are entitled to at least one qualifying benefit:

• Attendance Allowance
• Disability Living Allowance (middle or higher rate care component)
• Personal Independence Payment (daily living component)
• Employment and Support Allowance (with support component)
• Incapacity Benefit
• Universal Credit (with limited capability for work element)
• Armed Forces Independence Payment

What's the Impact?

• If the person with SMI lives alone — 100% council tax exemption
• If they live with one other adult — the other adult gets the 25% single person discount (the SMI person is "disregarded")
• If they live with two or more other adults — no discount, but the SMI person still doesn't count towards the bill

How to Apply

1. Get a medical certificate from the person's GP confirming severe mental impairment
2. Confirm the person receives a qualifying benefit
3. Apply to your local council with both documents

accessible Disability Reduction Scheme

The disability reduction scheme is different from the SMI disregard. It reduces your council tax band by one level (e.g., Band D pays the Band C rate) if a disabled person in the household needs:

• An extra room — a room (not a bedroom) that is predominantly used by and essential for the disabled person's needs. This could be a downstairs room used for sleeping, a therapy room, or a room for medical equipment
• An extra bathroom or kitchen — a second bathroom or kitchen required because of the disability
• Sufficient floor space for wheelchair use — the property needs enough space internally to allow wheelchair access and movement

Key Details

• The disabled person doesn't have to be the council tax payer — they just need to live in the property
• If you're already in Band A, you receive a discount equivalent to one-sixth off your bill (since you can't go below Band A)
• This can be combined with other discounts (e.g., single person discount)
• You don't need to have made adaptations — if the property naturally has the features needed, you can still qualify

How to Apply

Apply to your local council. You'll typically need to describe how the property meets the criteria and may need to allow an inspection. Some councils accept a self-declaration; others require more evidence. The reduction is applied from the date you first qualify, and can often be backdated.

home_work Empty Property Discounts & Premiums

The rules for empty properties have changed significantly in recent years, with councils given more power to charge premiums. Here's the current position:

Empty & Unfurnished Properties

• 0-1 years empty — most councils charge full council tax (100%), though some offer a short discount
• 1-5 years empty — councils can charge a premium of up to 100% (so you'd pay 200% of the normal bill)
• 5-10 years empty — premium of up to 200% (so 300% of the normal bill)
• 10+ years empty — premium of up to 300% (so 400% of the normal bill)

Second Homes

From April 2025, councils in England can charge a 100% premium on second homes (furnished properties that no one lives in as their main home). This means second homeowners could pay up to 200% of the normal council tax rate. Not all councils have adopted this yet, but many have.

Exemptions for Empty Properties

Some empty properties qualify for full exemption:

• Properties owned by the deceased — exempt for up to 6 months after probate is granted
• Properties left empty by someone in care — exempt while the person is in residential care or hospital
• Properties being repossessed — exempt while in the mortgage lender's possession
• Properties awaiting occupation by a minister of religion — exempt
• Annexes used by elderly/disabled relatives — many councils offer discounts

child_care Care Leavers Discount

Most councils in England now offer a council tax discount for care leavers aged 18-24 (some extend to 25). This recognises the financial challenges faced by young people who have been in local authority care. The discount varies by council — some offer 100% exemption, others a percentage reduction. Contact your council's leaving care team to apply.

military_tech Armed Forces Personnel

Armed forces personnel receive specific council tax protections:

• Deployed personnel — members of the armed forces who are away from their property on deployment are "disregarded" for council tax purposes. If they live alone, the property is exempt. If they live with a partner, the partner may get the 25% single person discount
• MOD accommodation — council tax on MOD-owned accommodation is typically paid by the MOD, not the individual
• Armed Forces Covenant — under the covenant, councils should not disadvantage armed forces families in their council tax treatment
• Visiting forces — members of visiting forces (e.g., from NATO countries) are disregarded for council tax purposes

volunteer_activism Other People "Disregarded" for Council Tax

Several categories of people are "disregarded" (not counted) when calculating council tax. If all adults in the property are disregarded, it's exempt. If only some are, the remaining adults may qualify for the 25% single person discount:

• Live-in carers — people providing care for someone they live with (not their spouse/partner or child under 18), who are providing at least 35 hours of care per week
• Diplomats — diplomatic agents and their family members
• Monks and nuns — members of religious communities
• People in detention — prison inmates (but not those on remand)
• People in hospital or care homes — long-term residents of hospitals or registered care homes
• 18-19 year olds in education — those who have just left school and are still in qualifying education

savings Council Tax Reduction Scheme (Low Income)

If you're on a low income, you may qualify for a reduction through your council's Council Tax Reduction Scheme (formerly Council Tax Benefit). Each council runs its own scheme, but they typically provide:

• Pension-age applicants — up to 100% reduction based on income and savings
• Working-age applicants — varies by council, but typically a significant percentage reduction based on income, Universal Credit status, and household circumstances

Apply through your local council. If you're already receiving Universal Credit, Housing Benefit, or Pension Credit, your council may have already assessed you — but it's worth checking, as you usually need to apply separately for council tax reduction.

priority_high Don't Forget: Check Your Band Too

Discounts and exemptions are one way to reduce your bill — but the other is making sure your council tax band is correct in the first place. Around 400,000 properties in England are estimated to be in the wrong band. If yours is too high, you could get a backdated refund going back to 1993 — on top of any discounts you're already receiving.

You can also check your property's EPC for useful floor area data at EPC Lookup.

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