Who Doesn't Pay Council Tax? Exemptions, Discounts & Free Months
Many people pay more council tax than they need to — or are unaware they're entitled to a full exemption. This guide covers every category of council tax exemption and discount in England, Scotland, and Wales: from students and pensioners to empty properties, disabled residents, and which months your payment takes a break.
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Which months are you not charged council tax?
Council tax bills are almost always spread over 10 monthly payments, not 12. This means two months each year — typically February and March — have no payment due.
- ✓Standard council tax is paid in 10 instalments (usually April to January)
- ✓February and March are typically the 'free' months with no payment
- ✓Some councils allow you to spread payments over 12 months if you prefer — ask your council
- ✓The 10-month schedule is why council tax feels like it 'resets' in April each year
- ✓Monthly payment amounts are calculated by dividing the annual bill by 10
Students — full exemption
Full-time students are completely disregarded for council tax purposes. This means they are treated as if they don't exist when calculating who lives at a property.
- ✓Full-time students at a college or university are exempt — the property may get a full or partial discount
- ✓If ALL residents of a property are full-time students, the property is completely exempt (no council tax due at all)
- ✓If one resident is a student and others are not, the non-students still pay — but get a 25% single-person discount if the student is the only other adult
- ✓Part-time students are NOT exempt
- ✓Student nurses, foreign language assistants, and apprentices may also qualify
- ✓You need a Student Exemption Certificate from your institution to claim
Pensioners — discounts and Council Tax Reduction
Pensioners are not automatically exempt from council tax — but many are entitled to significant reductions through Council Tax Reduction (CTR), also known as Council Tax Support.
- ✓Pensioners receiving Pension Credit Guarantee Credit: may receive full CTR (100% reduction)
- ✓Pensioners with low income and savings under £16,000 may get partial CTR
- ✓The amount varies by council — there is no national standard for working-age CTR
- ✓Pensioners living alone also get a 25% single-person discount
- ✓Second Adult Rebate: if you share your home with someone on a low income, you may get a discount based on their income
Disabled residents — Band Reduction Scheme
If you or someone you live with is severely mentally impaired or has a substantial and permanent disability, you may qualify for the Disabled Band Reduction Scheme.
- ✓The property is charged at the band below its actual valuation band (e.g. Band D pays Band C rates)
- ✓Band A properties get a flat-rate reduction (roughly one-sixth of the Band D rate)
- ✓You must have a room, extra bathroom, or extra space in your home that is essential to the disabled person
- ✓Severely mentally impaired (SMI) adults are completely disregarded — like students
- ✓If an SMI person lives alone, they pay nothing (full exemption) — they cannot be the sole occupier
- ✓Examples of qualifying conditions: severe dementia, stroke, severe learning disabilities
Single occupancy — 25% discount
If you live alone — or if you are the only countable adult at the property — you get a 25% discount on your council tax bill.
- ✓You qualify if you are the only adult who is not disregarded
- ✓People who are disregarded (and don't count): full-time students, severely mentally impaired adults, carers (in some circumstances), apprentices, care home residents
- ✓You must apply to your council — it is not applied automatically
- ✓Tell your council if your circumstances change (someone moves in)
Empty properties — what you pay
Empty properties are subject to council tax — there is no automatic exemption for unoccupied homes. However, councils have different rules and discretionary powers:
- ✓Most councils charge full council tax on empty properties from day one
- ✓Some councils charge a council tax premium on long-term empty properties: up to 300% for properties empty over 10 years
- ✓Furnished empty properties (e.g. a second home) are usually charged full council tax
- ✓Unfurnished empty properties: some councils offer a temporary discount in the first 1–6 months — varies by council
- ✓Exceptions: properties undergoing major structural repair may qualify for a full exemption (usually up to 12 months)
- ✓Annexes: furnished annexes used by a family member may get a 50% discount
Foster carers — are they exempt?
Foster carers do not automatically qualify for a council tax exemption, but many are entitled to a 25% single-person discount or Council Tax Reduction.
- ✓Children placed with foster carers are disregarded for council tax — they don't count as additional adults
- ✓If a foster carer lives alone with only fostered children, they qualify for the 25% single-person discount
- ✓Some councils have specific local discounts for foster carers — check with your local authority
- ✓Foster care income is disregarded for Council Tax Reduction purposes in many areas
What happens if you don't pay council tax?
Not paying council tax is not a criminal offence — but the consequences escalate quickly. You cannot be sent to prison simply for not paying (though persistent refusal after a committal hearing is technically possible in extreme cases).
How to apply for a council tax exemption or discount
Most discounts and exemptions are not applied automatically — you must apply:
Get advice about your specific situation
Ash is a free UK guidance assistant. Ask about your rights, get step-by-step guidance, and generate a formal letter if you need one.
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Frequently asked questions
Do students pay council tax?
Full-time students are exempt from council tax — they are 'disregarded' as if they don't live there. If every adult in a property is a full-time student, the property pays no council tax at all. If only some residents are students, the non-students still pay, but may receive a 25% single-person discount if the student is the only other adult.
Do pensioners pay council tax?
Pensioners are not automatically exempt from council tax, but many are entitled to significant reductions. Those receiving Pension Credit Guarantee Credit may qualify for a full Council Tax Reduction (100% discount). Pensioners with low income and savings under £16,000 can apply for partial CTR. All single-occupancy households also get a 25% discount.
Which months do you not pay council tax?
Council tax is normally paid in 10 monthly instalments, typically from April to January. This means February and March are usually the months with no payment due. The exact months depend on your council's billing schedule. You can ask your council to switch to 12 monthly payments if you'd prefer to spread the cost.
What happens if I can't pay my council tax?
Contact your council immediately. You can request a payment arrangement, apply for Council Tax Reduction, or ask about hardship funds. If you ignore council tax debt, the council will issue a reminder, then a final notice, then apply to a magistrates' court for a Liability Order. After that, they can use bailiffs or deduct from your wages. Not paying council tax is not a criminal offence, but enforcement action can be stressful and costly.
Am I exempt from council tax if I live alone?
Living alone doesn't exempt you entirely, but you get a 25% single-person discount on your bill. This also applies if you live with someone who is 'disregarded' — such as a full-time student or severely mentally impaired person. You need to apply to your council for the discount, as it is not applied automatically.