Council Tax Discounts and Exemptions: How to Reduce Your Bill

By Council Tax Challenger Team · Published 14 July 2026

You can cut your council tax through discounts and exemptions: 25% off if you live alone, full exemption for households of full-time students, a band reduction for disabled adaptations, and means-tested Council Tax Reduction of up to 100%. Every scheme is applied for through your council, and none of them costs anything to claim.

Most households pay the full council tax bill without checking whether they should. In fact there is a long list of council tax discounts and exemptions: 25% off for people who live alone, complete exemptions for student households, a band reduction for disabled residents, and means-tested help that can wipe the bill entirely. All of it is claimed through your council, free of charge.

This guide lists every major discount, who qualifies, and how much it is worth. One thing first: every discount is a percentage of your bill, and your bill is set by your band. If the band is wrong, every discount you claim is calculated on an inflated number, so check your band before or alongside claiming.

What council tax discounts can you get?

Council tax discounts and exemptions at a glance
Discount or exemption	Who qualifies	How much
Single person discount	The only adult living in the property	25% off the bill
Student exemption	Households where everyone is a full-time student	100%: no bill at all
Severely mentally impaired (SMI)	Doctor-certified impairment plus a qualifying benefit	25% off, or full exemption if living alone or with other disregarded people
Disabled band reduction	A home with qualifying features for a disabled resident	Billed at the band below yours
Second adult rebate	Pension-age taxpayers sharing with a low-income adult (not in Wales)	Up to 25% off
Council Tax Reduction	Low-income households, working or not	Up to 100%, depending on the council's scheme
Section 13A hardship reduction	Anyone in financial hardship, at the council's discretion	Any amount, up to the full bill
Care leaver discount	Young people leaving care (age limits vary by council)	Often 100% up to age 25

Who gets the single person council tax discount?

Anyone who is the only adult living in their home gets 25% off, whatever their income. The discount also applies when the other residents are disregarded for council tax: full-time students, people who are severely mentally impaired, live-in carers for someone who is not their partner or child, apprentices, and under-18s all fall outside the count. A parent living with two student-age children in full-time education, for example, counts as the only adult and qualifies for the 25% discount.

Are students exempt from council tax?

A household made up entirely of full-time students pays no council tax at all. To count as full-time your course must normally last at least a year and involve at least 21 hours of study a week. Mixed households work differently: one non-student adult living with students pays the bill with a 25% discount; two or more non-student adults means a full bill. The exemption is applied for through the council with proof of enrolment, and it is worth checking it was actually applied, because it is not automatic in every area.

What help exists for disability and illness?

Two separate schemes apply. The disabled band reduction drops your bill to the band below when your home has features essential to a disabled resident: a room used mainly to meet their needs, a second bathroom or kitchen, or indoor space for wheelchair use. A band A home gets an equivalent cash reduction. The property does not need to have been adapted specially; the features just need to be necessary.

Separately, someone who is severely mentally impaired (the legal test covers conditions such as dementia or the effects of a severe stroke, certified by a doctor, plus entitlement to a qualifying benefit) is disregarded entirely. Living alone they are exempt; living with one other adult, the bill falls by 25%. Take-up is notoriously poor, and the government has committed to renaming the discount as part of its council tax administration reforms to remove the stigmatising label. Backdating can be substantial, so claim even if the entitlement began years ago.

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What help is there if you are on a low income?

Council Tax Reduction (sometimes called Council Tax Support) is the main means-tested scheme. Every council runs one, and depending on your income, savings, and household it can cut a working-age bill substantially and a pension-age bill by up to 100%. Apply through your council whether or not you receive other benefits.

Two further routes are widely missed. The second adult rebate gives pension-age taxpayers up to 25% off when they share their home with another adult on a low income who is not their partner; it is not available in Wales. And Section 13A of the Local Government Finance Act 1992 obliges every council to operate a discretionary scheme that can reduce any bill, by any amount, in cases of hardship. Councils rarely advertise it, but they must consider a written application on its merits.

Can you spread council tax payments over 12 months?

Yes. Council tax defaults to 10 monthly instalments, but you have a legal right to request 12, and the council must agree. It does not reduce the total, but it cuts each payment by roughly a sixth, which helps with monthly budgeting. Under the government's council tax administration reforms, 12-month billing is set to become the default from 2028, alongside the SMI rename and other changes to how bills and arrears are handled.

Why check your band before claiming discounts?

Because a wrong band compounds through everything else. A 25% discount on a band E bill that should be band D still leaves you overpaying every month, and MoneySavingExpert estimates up to 400,000 UK homes are in the wrong band. Fixing the band cuts the bill itself, applies on top of any discount you claim, and comes with a refund backdated to when you became liable. Run the two-minute check with our free postcode checker, then claim every discount you qualify for on the corrected bill.

Frequently asked questions

Can council tax discounts be backdated?

Often, yes. If you were entitled to a discount you never claimed, such as the single person discount or the severely mentally impaired disregard, ask your council to backdate it to when your entitlement began. Councils handle backdating case by case, so provide evidence of your circumstances for the whole period you are claiming.

Do I still pay council tax if everyone in the house is a student?

No. A household where everyone is a full-time student is exempt from council tax entirely. If a student lives with one non-student adult, the household gets a 25% discount instead, because the student is disregarded. Apply through your council with proof of enrolment; the exemption is not always applied automatically.

What is the severely mentally impaired council tax discount?

A person who is severely mentally impaired, certified by a doctor and entitled to a qualifying benefit, is disregarded for council tax. Living alone they are exempt entirely; with one other adult the bill drops 25%. The government plans to rename the discount as part of its council tax reforms to reduce stigma and improve take-up.

What is a Section 13A council tax reduction?

Section 13A of the Local Government Finance Act 1992 lets any council reduce a council tax bill, by any amount, where the taxpayer is in hardship. Every council in England and Wales must have a Section 13A scheme and consider applications individually. It is a last-resort route, so apply in writing and explain your circumstances fully.

Can I pay my council tax over 12 months instead of 10?

Yes. You have the right to ask your council to spread payments over 12 monthly instalments instead of the default 10, which lowers each payment. Councils must agree if you ask. Under government reforms to council tax administration, 12-month billing is due to become the default from 2028.

Sources

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