Council Tax Discounts and Exemptions: The Complete Guide
Many households pay more council tax than they need to. Discounts and exemptions exist for a wide range of situations — from living alone to caring for someone full-time — but the council won't automatically apply them. You have to claim. This guide walks you through what's available and how to get it.
Discounts vs Exemptions: What's the Difference?
A discount reduces your council tax bill by a percentage. The most common is the 25% single person discount, but others exist for certain situations or property types.
An exemption means your bill is zero — you pay nothing at all. Exemptions usually apply to specific people (like full-time students) or specific properties (like an empty property after someone has died).
Both need to be applied for. Your council won't automatically check whether you qualify.
The Main Council Tax Discounts
25% Single Person Discount
If only one adult lives in your home — or only one adult is counted — you get 25% off your bill. The national Band D average is £2,171 a year in 2025/26, so this discount saves the average household around £543 annually.
Certain people are "disregarded" when counting adults, which means a household with two adults can still qualify if one of them doesn't count. More on disregarded persons below.
Disabled Band Reduction
If someone in your home has a disability and your property has been adapted to meet their needs — for example, an extra bathroom or a room for medical equipment — you may qualify for a band reduction.
This moves your bill down to the rate for the band below yours. If you're in Band A (the lowest), you get a one-ninth reduction instead.
Empty Property Discounts
Councils have discretion over how much to charge for empty properties, and policies vary significantly. Some councils offer a short discount when a property is empty and unfurnished; others charge a premium for long-term empty homes.
Check your specific council's policy — there's no national standard here.
Council Tax Exemptions
A full exemption means no bill at all. The most common exemptions include:
- Properties occupied only by full-time students
- Properties left empty after the occupant has moved into a care home or hospital
- Properties empty because the owner has died (until probate is granted, and for up to six months after)
- Properties that are the sole residence of under-18s
- Occupied only by people with severe mental impairment (SMI) who would otherwise be the liable person
Disregarded Persons: Who Doesn't Count?
When your council counts the adults in your home to decide whether you qualify for a single person discount, some people are invisible to that count. These are called "disregarded persons."
Being disregarded doesn't exempt someone from council tax — it just means they don't count towards the household total for discount purposes.
- Full-time students
- Student nurses
- Apprentices earning under £195 per week
- People with severe mental impairment (SMI)
- Care workers providing at least 24 hours of care a week for £44 or less
- Carers (non-spouse/parent) providing at least 35 hours of care a week
- Under-18s
- People in prison or detention
- Members of religious communities
- Foreign language assistants registered with the British Council
How to Apply for a Discount or Exemption
Contact your local council directly. Every council has an online form or a council tax team you can call. You'll typically need to provide evidence — for example, a student exemption certificate from your university, or a letter from a GP for an SMI discount.
Once approved, your council will issue a revised bill. If you've overpaid, you'll usually receive a credit or refund.
Don't wait — discounts can sometimes be backdated, but councils aren't always obliged to go back more than a few months.
Frequently asked questions
- Can I get a discount if I live with someone who is disregarded?
- Yes. If everyone else in your household is disregarded — for example, you're the only non-student — you qualify for the 25% single person discount even though you don't live alone.
- Do I need to reapply for a discount every year?
- Usually not, once it's applied. However, you must tell your council if your circumstances change — for example, if a new adult moves in or a student in the household graduates.
- What evidence do I need to claim the SMI discount?
- You'll typically need a signed certificate from a doctor confirming the diagnosis, plus evidence that the person receives a qualifying benefit such as Incapacity Benefit, ESA, or DLA.
- Can a property be fully exempt if only some residents are students?
- No. A full student exemption only applies if every resident is a full-time student. If even one non-student lives there, a bill is issued — though that non-student may qualify for the 25% single person discount.
- How far back can a discount be backdated?
- It depends on the council. Some will backdate to when you first qualified; others limit it to the start of the financial year or a specific number of months. Apply as soon as possible to maximise any refund.
Related guides
Single Person Council Tax Discount: How to Claim Your 25% Off
The single person council tax discount cuts your bill by 25%. It's not automatic — you need to claim it. Here's everything you need to know.
Council Tax Reduction: How to Cut Your Bill If You're on a Low Income
Council Tax Reduction replaced Council Tax Benefit in 2013 and can significantly reduce — or eliminate — your council tax bill if you're on a low income.
Council Tax for Students: Are You Exempt?
Full-time students don't pay council tax — but part-time students do, mixed households still get a bill, and you need your exemption certificate sorted early.
Council Tax Bands Explained: A to H, What They Mean and How They Work
Council tax bands run from A to H and were set using 1991 property valuations. Here's exactly what each band means, how the multipliers work, and why your band matters.
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