Most UK households pay the full Council Tax bill without realising they qualify for a discount or exemption that could cut it by 25%, 50% or even 100%. If you live alone you can claim a 25% Single Person Discount. If everyone in your home is a full-time student or “severely mentally impaired”, the property can be fully exempt. People in certain situations — carers, apprentices, under-18s and others — are “disregarded”, which can unlock a discount even when more than one person lives there. This guide explains every main Council Tax discount and exemption in England for 2026, what changed for second and empty homes in April 2025, and exactly how to claim.
Related reads: if you are on a low income, you may also qualify for means-tested help — see our guide to Council Tax Reduction (up to 100% off). And if you think your home is in the wrong band, read how to challenge your Council Tax band and claim a refund. These are separate processes — you can pursue more than one at the same time.
Discounts vs exemptions: what is the difference?
A discount reduces your bill by a percentage — usually 25% or 50% — while you still pay something. An exemption means no Council Tax is due at all for as long as the conditions apply. Both depend on your circumstances and who lives in the property, not on your income. (Income-based help is a different scheme, Council Tax Reduction.) Council Tax is devolved, so the headline rules below apply to England; Scotland and Wales run broadly similar discounts but with some differences, and Northern Ireland uses domestic rates instead.
The Single Person Discount (25%)
Council Tax assumes two adults live in a property. If you are the only adult (aged 18 or over) who lives there, you get a flat 25% discount — the Single Person Discount. On the average Band D bill of around £2,392 for 2026/27, that is roughly £600 a year back in your pocket.
Crucially, you can still claim the 25% even if you do not live entirely alone — as long as everyone else in the home is “disregarded” (see below). For example, a parent living with a full-time student child counts as a single eligible adult and keeps the 25% discount.
Who is “disregarded” for Council Tax?
Some people are not counted when the council works out how many adults live in a property. If everyone except one person is disregarded, you get the 25% discount; if everyone is disregarded, you may get a 50% discount or a full exemption. Disregarded groups include:
- Full-time students, student nurses and some apprentices and trainees
- People aged under 18, and 18- and 19-year-olds in full-time education or who have just left school
- People who are “severely mentally impaired” (SMI)
- Live-in carers caring for someone who is not their spouse, partner or child under 18
- People in long-term hospital care, care homes or certain hostels
- Diplomats and members of visiting forces
- People in prison (except for non-payment of Council Tax or fines)
Full-time students: discount and exemption
A property occupied only by full-time students is fully exempt from Council Tax (exemption Class N) — nobody needs to pay. To count as full-time, a course generally must last at least one academic year, involve at least 21 hours of study a week, and require attendance for at least 24 weeks a year. Halls of residence are automatically exempt.
If a student shares with one non-student adult, the household is no longer exempt — but because students are disregarded, that one liable adult can claim the 25% Single Person Discount. Two or more non-student adults means the full bill is due.
The Severe Mental Impairment (SMI) discount
This is one of the most under-claimed reliefs in the UK. A person is disregarded as “severely mentally impaired” if they have a severe and permanent impairment of intelligence and social functioning — conditions such as dementia, a severe stroke, Parkinson’s or a severe learning disability can qualify. Two conditions must be met: a doctor must certify the impairment, and the person must be entitled to one of a list of qualifying benefits (for example Attendance Allowance, the daily living component of PIP, or the middle or higher rate care component of DLA).
If someone with SMI lives alone, the property is exempt (100% off). If they live with one other adult, that adult gets the 25% discount. If everyone in the home is either a student or has SMI, the property is exempt. Refunds can often be backdated to the date the qualifying benefit started, so it is well worth claiming even years later.
The Disabled Band Reduction scheme
If a disabled person (adult or child) lives in your home and the property has been adapted to meet their needs — for example a room used mainly for their care, an extra bathroom or kitchen, or enough space to use a wheelchair indoors — your bill can be reduced to the rate of the band below yours. A Band D home is charged at the Band C rate. If you are already in Band A, you receive a reduction of roughly one-sixth instead. This is separate from, and can be combined with, the discounts above.
Carers and care leavers
A live-in carer is disregarded if they provide care for at least 35 hours a week to someone who receives a qualifying disability benefit, and they are not caring for a spouse, partner or their own child under 18. Many councils also give care leavers (typically up to age 25) a discount or full exemption under their local scheme — check your authority’s policy directly.
Council Tax discounts and exemptions at a glance
| Situation | Relief | Typical saving |
|---|---|---|
| Only one adult resident | Single Person Discount | 25% off |
| One adult + only disregarded others (e.g. a student) | Single Person Discount | 25% off |
| All residents are full-time students | Exemption (Class N) | 100% off |
| Person living alone with severe mental impairment | Exemption | 100% off |
| All residents disregarded (but not exempt class) | Discount | 50% off |
| Home adapted for a disabled resident | Disabled Band Reduction | One band lower |
| Property left empty after death (probate) | Exemption (Class F) | 100% off (time-limited) |
| Long-term empty or second home | Premium (extra charge) | Up to 200–400% paid |
Empty and unoccupied homes: discounts have become premiums
Years ago, an empty home attracted a discount. Today the opposite is true. Most English councils now charge the full Council Tax on an empty property after a short grace period, and then add an “empty homes premium” the longer it stays unoccupied. The premium is charged on top of the normal bill:
- Empty 1–5 years: up to 100% premium — so you pay 200% of the normal bill
- Empty 5–10 years: up to 200% premium — 300% of the bill
- Empty 10+ years: up to 300% premium — 400% of the bill
Some empty properties still get short exemptions or discounts — for example a home left empty and unfurnished for a short period, a property undergoing major repairs, or one left empty by someone who has gone into care or hospital. Policies vary widely by council, so always check before assuming you owe nothing.
Second homes: the new premium from April 2025
This is the biggest recent change. From 1 April 2025, councils in England were given the power to charge a 100% premium on furnished second homes — properties that no one lives in as their main residence. Where a council has adopted it, second-home owners now pay up to 200% of the normal Council Tax. Most councils in popular second-home areas have introduced the premium. Wales has allowed premiums of up to 300% on second homes for some time, and Scotland permits a 100% second-home premium. There are limited exceptions (for example job-related dwellings and properties that cannot legally be lived in year-round), so check your council’s published policy.
Other full exemptions worth knowing
Several specific situations make a property exempt, usually for a limited time. The most common include:
- Class F — a home left empty after the owner has died, exempt until probate is granted and for up to six months afterwards
- Class B — an empty property owned by a charity (up to six months)
- Annexes occupied by a dependent elderly or disabled relative, or used by the main household
- Homes where everyone living there is under 18, or is a care leaver in some council schemes
- Properties repossessed, legally unfit to live in, or left empty by someone in prison or in care
How to claim a discount or exemption
There is no central system — you apply directly to the council that sends your Council Tax bill. The steps are simple:
- Find your council at gov.uk/apply-council-tax-discount and open its Council Tax discount page
- Choose the discount or exemption that fits (single person, student, SMI, disabled reduction, and so on)
- Gather evidence — for example a student certificate, a doctor’s diagnosis and proof of a qualifying benefit for SMI, or details of an adapted room
- Apply online or by form; many councils backdate the relief to when you first became eligible
- Tell the council within 21 days if your circumstances change, or you risk a penalty and a backdated bill
If a claim is refused and you believe the decision is wrong, ask for a review and, if still unhappy, appeal to the Valuation Tribunal (England and Wales) — it is free to use.
Frequently asked questions
Can I get the Single Person Discount if I live with a student?
Yes. Full-time students are disregarded, so if the only other people in your home are students, you count as the sole eligible adult and keep the 25% discount.
How much is the single person Council Tax discount worth?
It is a flat 25% off your bill. On the average Band D bill of about £2,392 in 2026/27, that is roughly £600 a year, though the exact figure depends on your band and council.
Is the severe mental impairment discount backdated?
Usually yes. Councils often backdate an SMI disregard or exemption to the date the qualifying benefit began, which can mean a refund worth thousands of pounds. Apply even if the diagnosis was years ago.
Do I pay more Council Tax on a second home in 2026?
In most areas, yes. Since April 2025 English councils can charge a 100% premium on furnished second homes, so you may pay up to 200% of the normal bill where your council has adopted the policy.
Is an empty property exempt from Council Tax?
Rarely for long. A short exemption or discount may apply while a home is unfurnished or being repaired, but most councils charge the full bill quickly and add an empty-homes premium of up to 300% once a property has stood empty for several years.
Can I claim a discount and Council Tax Reduction at the same time?
Yes. Discounts (like the 25% single person discount) are applied first, then means-tested Council Tax Reduction can reduce what is left. See our separate guide to Council Tax Reduction.
Last reviewed: June 2026. Council Tax rules are devolved and each local authority sets its own policy on premiums and local discounts — always confirm the details with your own council before relying on them. This guide is general information, not financial or legal advice.