Ways to reduce Council Tax

Council Tax is a property-based tax paid to local authorities. Depending on your circumstances, you may be entitled to discounts or an exemption on your Council Tax bill.

How is Council Tax worked out?

How much Council Tax you pay depends on:

• the ‘band’ assigned to your home based on its value (there are 8 Council Tax bands, ranging from A to H, A being the band with the lowest charges and H being the band with the highest charges)
• how much your local council charges for that band
• whether you’re eligible for a discount or exemption from the full bill.

Check your Council Tax band on GOV.UK

What qualifies for a reduction in Council Tax?

There are some circumstances where you may get a discount on your Council Tax. The amount of discount varies depending on your circumstances.

If you live alone

The full Council Tax is calculated assuming there are 2 or more people living in each home – if you live alone, you should apply to your local council for a discount. You could get a 25% discount, regardless of your financial circumstances.

If you live with someone under 18 or a student 

Council Tax isn’t calculated on anyone aged under 18, full-time students, student nurses and some apprentices and trainees.

If you’re a carer

Carers who look after someone in the household for at least 35 hours a week and who meet additional criteria may be disregarded for Council Tax purposes. Contact your local council for their eligibility criteria. This doesn't apply if the person receiving care is the carer's partner or their under-18 child.

If there are major changes to your home’s value

You may be able to get your home moved to a lower Council Tax band if your home has decreased in value. For example, if you’ve made home adaptations for a disabled person, or if a motorway has been built nearby. Contact your local office of the Valuation Office Agency (VOA) if you think your home’s Council Tax band should be changed

If you change the way you pay

Although the total year’s amount will stay the same, you can request that your bill be split over 12 months (instead of 10 months) so that each month’s bill is less. Alternatively, if you can afford to pay a year’s worth in one lump sum, check if you can get a discount.

How do I apply for Council Tax Reduction?

You may be eligible to claim Council Tax Reduction, which used to be called Council Tax Benefit, if you’re on a low income or receive certain benefits.

Find out more about Council Tax Reduction

Could I be exempt from paying Council Tax?

There are other discounts and exemptions you can claim to reduce your Council Tax, which might be available to you if: 

• you live in a care home or hostel
• you're in hospital on a permanent basis
• your home is unoccupied because you've gone to live somewhere else to provide or receive personal care due to age, illness or disability
• you or someone you live with has a severe mental impairment, such as dementia or a learning difficulty. If you live with someone who has a severe mental impairment, they'll be disregarded and you’ll be treated as the sole occupant for Council Tax purposes.

If you think you're eligible, get in touch with your local authority to apply for a discount or exemption.

What if I can’t pay my Council Tax bill?

Council Tax is compulsory and must be paid. If you don’t pay it or you fall behind on your payments, the council will send you a reminder letter. If you don’t pay after a few reminders then the council can take you to court.

If you're struggling to pay your Council Tax because of financial difficulties, then seek professional advice as soon as you can. Get in touch with your local Age UK or Citizens Advice.

Councils may have a hardship fund available for people in financial difficulty. Contact your local council to find out what funds, if any, might be available and how to apply.