How to receive a council tax reduction

Council taxes have increased and are expected to continue rising

However, little-known reductions may be available to thousands of people. We describe who might be eligible for hundreds off their annual bill.

Another council tax increase was imposed on households nationwide in April, and more increases are anticipated. However, a lot of people might be losing out on important discounts that could result in significant annual savings.

For 2026-2027, the average Band D council tax in England was 2,392, which is in the middle of the range set by local authorities. This represents a 111 percent increase, or 4.9 percent, over the 2025-2026 figure.

An examination of government plans indicates that by 2029-2030, council tax bills in some regions of the UK could increase by up to 500.

However, depending on their circumstances, some individuals may be eligible for discounts of between 25% and 100%. Here are the details you need to know about council tax reductions, including what you can apply for and the estimated savings.

View the entire video here.

Is there a council tax reduction available?

Services like trash collection and your neighborhood library are funded by council taxes, and in 2022, local governments were given the authority to increase resident fees by up to 5%.

Turn2Us, a debt charity, has previously cautioned that millions of households may be losing out on bill discounts to which they are legally entitled.

These are some of the discounts to which you may be eligible, along with instructions on how to apply.

Disability-related council tax discounts.

If you or someone you live with has a disability, you may be eligible for a council tax discount or not be required to pay at all. You might qualify for the Disabled Band Reduction Scheme, for instance, if your home is larger than what you or another resident would require if you were not disabled.

The savings can be substantial for those who qualify for the program. To the next lowest council tax band, your bill will be lowered. For instance, you'll pay the Band C rate if your property is in Band D. Instead, your council tax bill will be reduced by 17% if your house is already in Band A, the lowest band.

You may be eligible for the program if you have additional space on your property for a wheelchair user or an additional bathroom, kitchen, or other room that is necessary for the disabled person.

The property must be the primary residence of at least one disabled person, either an adult or a child, in order to qualify for the discount; this person need not be the one who is in charge of paying the council tax.

Check your eligibility for the Disabled Band Reduction Plan.

Discounts for dementia and Alzheimer's patients.

If you or someone you live with has a severe mental impairment, you may be eligible to apply for a council tax bill discount. This includes those who suffer from diseases like dementia, Alzheimer's, or severe learning disabilities.

A certificate attesting to your severe mental impairment must be obtained from a medical professional, such as your general practitioner, in order for you to be eligible for a council tax discount on these grounds.

Additionally, you will need to demonstrate that you are eligible for some benefits; you can do this by contacting your local council.

Individuals who are classified as severely mentally impaired are eligible for a 100% council tax discount, provided that they live alone and that any other adults in their household are either full-time students or also qualify.

If everyone else in your household is disregarded for council tax purposesthat is, someone who resides in your home but is not included when your local council determines the number of adults in the propertyyou may receive a 50% reduction on your council tax bill.

If you live with someone who meets the criteria for being severely mentally impaired and either there are no other adults in your home or everyone else is ignored, you will receive a 25% discount.

Look up your council tax band.

The government's Valuation Office Agency (VOA) determines a property's council tax band based on its value as of April 1, 1991 for England and Scotland and April 1, 2003 for Wales.

Bands are determined by the property's character, layout, location, and size, and range from the least expensive A category to the most expensive H category.

However, your home band might have changed since 1991, and it might even have been valued wrong in the first place.

For information on determining your council tax band, see our article.

Seeing what your neighbors are paying is one of the best ways to determine whether you are in the appropriate council tax band.

You can check your council tax bands and others online by entering your address and postcode at Gov . uk. This may be a challenging question to ask.

You should be in the same band as houses of comparable age, size, and style.

If your council tax band differs from that of your neighbors, it might be worthwhile to contest it and request a reduction through the VOA.

In order to demonstrate the value of your property between April 1989 and March 1993 in England and April 2001 and March 2005 in Wales, you will need to submit the addresses of five comparable properties in a lower tax band than yours as well as proof of house prices.

The Land Registry and other sources, like the Nationwide House Price Index, provide information on home prices.

Be cautious, though, because if the VOA determines that you should be paying more, the council tax bill for your property and those on the same street may go up.

You might still qualify for a council tax reduction if you are in the right band.

Discount for one person.

A twenty-five percent council tax discount is available to independent adults.

Additionally, the discount is applicable if local authorities "disregarded" or exempted some of your roommates when calculating the bill.

This includes anyone under the age of eighteen who resides with you or someone who is enrolled in school or undergoing training.

Disregarding all residents of a property can also result in a 50% reduction in the council tax bill.

Members of the armed forces and residents of assisted living facilities fall under this category.

Do students have to pay the council tax?

Families with all members enrolled full-time in college or university are exempt from paying council tax.

You must be enrolled in your course for at least a year and study for at least 21 hours per week in order to qualify as a full-time student.

If you're under 20 and pursuing an A level qualification, your course must be at least three months long and require at least twelve hours of study per week.

What is the amount of the council tax discount available to retirees?

Those who claim the guarantee element of Pension Credit may be eligible for a full council tax discount once they reach the state retirement age.

This will only be applicable if you don't share a residence with a council tax eligible person.

You might still qualify for assistance if you don't receive the guarantee credit but have a low income and savings of less than £16,000.

Council tax payments and vacant properties.

Depending on what is going on with the house, different council tax laws apply to vacant properties. Rates differ by area because local councils in England and Wales are free to determine their own exemptions and discounts.

For an empty property, for instance, local authorities may offer a 100% discount; however, after a long time, they may add a premium.

Councils have the power to determine the premium level. For instance, they might charge a 50% premium for homes that have been vacant for one to two years, and a 100% premium for homes that have been vacant for two to five years.

If the empty property is an annex, there is no premium to pay.

If you are building a new home or making significant renovations on an existing one, you might be eligible for a complete exemption.

If you are selling an empty property on behalf of a deceased owner, you can also avoid paying council tax. Councils won't send you a bill until you receive probate, and if the property is still unoccupied and in the deceased's name, you might receive an additional six-month exemption after that.

If selling the property is taking longer than expected, this could be useful.

Council tax discounts and second homes.

Second homeowners will have to pay the property's council tax. If no one resides there permanently, some local governments may grant a discount at their discretion. However, in an effort to free up housing for residents, second home owners are now paying a higher council tax.