Council Tax Exemptions & Discounts 2025-26
You may not have to pay the full council tax rate. Discounts and exemptions can reduce your bill by 25%, 50%, or even 100% depending on your circumstances.
1. Single Person Discount — 25% off
Council tax is set assuming two adults live in the property. If you are the only adult, you get a statutory 25% discount — regardless of which council you are in.
| Scenario | Band D annual bill | Monthly (10 payments) |
|---|---|---|
| Full rate (2 adults) | £2,280 | £228 |
| Single person (25% discount) | £1,710 | £171 |
| Annual saving | −£570 | −£57 |
Figures based on England average Band D rate of £2,280 in 2025-26. Your actual saving depends on your council and band.
- You are the only adult (18+) living in the property
- All other residents are "disregarded" (students, carers, those with SMI, 18-year-olds in further education)
- How to claim: contact your council directly — it is not applied automatically in most areas
2. Student Exemption — 100% off (full-time students)
Full-time students are completely disregarded for council tax purposes. A property occupied only by full-time students is entirely exempt — the bill is £0.
| Household composition | Council tax owed | Notes |
|---|---|---|
| All full-time students | £0 | Full exemption |
| 1 student + 1 non-student | £1,710 | Non-student gets 25% SPD |
| 2 non-students + 1 student | £2,280 | Full rate — 2 chargeable adults |
| 1 non-student (student left) | £1,710 | 25% single person discount |
- Enrolled on a full-time course at a university or college
- Course must last at least one year and require 21+ hours/week of study
- Foreign language assistants and student nurses also qualify
- You need a council tax exemption certificate from your university
3. Severe Mental Impairment (SMI) Exemption
A person with a "severe mental impairment" is disregarded for council tax purposes. Combined with other discounts, this can reduce a bill to zero.
| Household composition | Discount | Annual bill (Band D avg.) |
|---|---|---|
| 1 SMI person living alone | 100% | £0 |
| 1 SMI person + 1 non-SMI adult | 25% | £1,710 |
| 2 SMI people | 100% | £0 |
| 2 adults, 1 SMI + 1 non-SMI | 25% | £1,710 |
- Severe impairment of intelligence and social functioning from a condition such as Alzheimer's, stroke, Parkinson's, or other brain injury
- Must be certified by a doctor and the person must be entitled to one of the qualifying disability benefits (e.g. incapacity benefit, ESA, DLA, PIP)
- A council may backdate an SMI discount — worth applying even if the condition has existed for years
4. Empty Property Discount
Rules on empty properties vary significantly by council. The general framework in England from 2013 is:
| Situation | Typical rate | Notes |
|---|---|---|
| Empty & unfurnished (up to 1 month) | 0% (exempt) | Most councils grant a short grace period |
| Empty 1–6 months | 100% or council discretion | Varies widely — councils can offer 0–100% |
| Empty 1–2 years | 100–200% | Councils can charge full or a premium |
| Empty 2–5 years | Up to 200% | 100% empty home premium |
| Empty 5–10 years | Up to 300% | 200% premium (from April 2024) |
| Renovations (up to 12 months) | Council discretion | Some councils grant 50% or full discount |
| Annexe occupied by relative | 50% off annexe rate | Statutory discount since 2014 |
Always check with your specific council — policies vary enormously. Properties left empty by someone who has moved into residential care or hospital are typically fully exempt.
5. Other "Disregarded" Persons (who don't count for the bill)
Certain adults are not counted when calculating your council tax liability, potentially triggering the 25% single person discount for whoever remains.
Practical example: Band A property with single person discount
Band A is the cheapest band (properties valued under £40,000 in 1991 prices). With a single person discount on top, the bill becomes very low.
| England average Band D rate | £2,280/year |
| Band A rate (6/9ths of Band D) | £1,520/year |
| Band A + 25% single person discount | £1,140/year |
| Monthly (10 payments) | £114/month |
Council tax discounts and exemptions in 2025-26
Council tax is calculated on the assumption that a property houses at least two adults. When the number of chargeable adults is reduced — by exemptions, disregards, or simply living alone — the bill is adjusted accordingly. The most widely used reduction is the 25% single person discount, which applies to around 30% of all council tax bills in England.
The full student exemption is another major relief. In cities with large student populations, entire streets of student accommodation may have zero council tax liability. The exemption is automatic once the council receives your certificate from your university.
Council Tax Reduction (CTR) — means-tested support
Separate from the discounts above, Council Tax Reduction (formerly Council Tax Benefit) is a means-tested support scheme run by each local council. Working-age applicants may receive between 20% and 100% off their bill depending on income. Pensioners on Pension Credit are generally entitled to a full reduction. CTR is separate from the statutory discounts above — you can potentially receive both.
Always apply for every discount or reduction you are entitled to. Councils do not apply most discounts automatically — you must claim them, and in some cases they can be backdated.
Frequently asked questions
Do students pay council tax?
Full-time students are completely exempt from council tax — they pay £0. A property occupied only by full-time students is fully exempt. If a student shares with one non-student, the non-student gets a 25% single person discount because the student is disregarded for council tax purposes.
Can I get a 25% single person discount?
Yes — if you are the only chargeable adult in your home, you are entitled to a 25% discount. On the England average Band D rate of £2,280/year, this saves £570/year (£57/month), reducing your bill to £1,710. Apply directly to your council — it is not automatic in most areas.
What if I live alone?
Apply for the 25% single person discount as soon as possible — and ask your council if it can be backdated to when you started living alone. If you also qualify for a severe mental impairment disregard, you could reduce your bill further to 50% or 0% depending on your circumstances.